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Just Eat Takeaway to acquire Grubhub for $7.3B

nytimes.com

111–120 of 150 posts

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#111
post #109

My question: how is this allowed? Won't this create a massive monopoly? I and many others had the same concerns when Just eat bought Hungry House. Now we've got Deliveroo and Uber Eats too, but how can a smaller player survive with these behemoths?

> "how can a smaller player survive with these behemoths?"

Make sure your customers know you, and know you deal fairly.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#112
post #64
post #23

Earlier quoted context omitted.

Have you tried pizza pie? But really, the economics are all in operations and scale. Some people may complain that they can’t get delivery 10 miles away from a restaurant.. but they aren’t willing to tip or pay higher for the back and forth a driver must do to earn more than it costs to pay them. Cutting to 5 or even 3 miles for delivery ranges makes a big difference for orders per hour.

> they aren’t willing to tip I wish everybody would stop tipping. If nobody subsidized delivery workers' wages with tips, delivery companies would have to start paying workers enough to make it actually worth their time to begin with, and pass those costs onto VCs and eventually consumers. More reliable income for the delivery workers, more transparent delivery pricing for consumers. What's not to like? A similar dyn…

Tips have completely died over here due to online payment. You order, you pay, food gets delivered. There's no stage for tipping.

Back when you had to pay cash on delivery, tipping was pretty common (at least for me), but right now there's just no reasonable moment to tip anymore.

Of course its trivial to include delivery cost in the price. You know where it needs to go, so you can make a good estimate of the time it takes to deliver there, and include that in the price.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#113
post #80

Earlier quoted context omitted.

When you order through a delivery service, the restaurant is generally paid less than their normal menu price, and none of the tips go to the kitchen staff. In addition to charging the restaurant, the delivery service charges the customer a higher price than the restaurant would. They add delivery fees and service fees. On top of that, the online menus in the delivery service apps often have higher prices than the re…

So... By spending more into the economy you're being selfish? Since when is giving people money for their services considered selfish?

Where did they say "selfish"?

This wouldn't be a problem if it was a case of choosing between A) paying $15 to the restaurant or B) $15 to the restaurant plus $5 in delivery.

However, in reality you're choosing between paying A) $15 directly to the restaurant or B) $12 to the restaurant and $8 for delivery.

Hopefully the added volume of orders makes up for the $3 (made up numbers by the way), but I'm not so sure.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#114
post #106

Earlier quoted context omitted.

Just Eat was originally Danish. Takeaway was originally Dutch. Just Eat Takeaway is a Dutch company listed on London Stock Exchange since February 2020. https://en.wikipedia.org/wiki/Just_Eat_Takeaway

You are right my bad. I didn't see the Takeaway part.

I made exactly the same mistake initially :)

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#115
post #80

Earlier quoted context omitted.

wait... this comment is confusing. how is he not contributing towards "keeping the restaurant in business" by ordering delivery vs picking it up in person?

When you order through a delivery service, the restaurant is generally paid less than their normal menu price, and none of the tips go to the kitchen staff. In addition to charging the restaurant, the delivery service charges the customer a higher price than the restaurant would. They add delivery fees and service fees. On top of that, the online menus in the delivery service apps often have higher prices than the re…

When I go pickup food on my own, there’s still no tip money flowing to the kitchen (or anyone else).

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#116
post #78

Earlier quoted context omitted.

How different would Disney be without Pixar? Not different at all. And fox? Too early to tell.

Name one decent Disney animated movie that was released after Pixar was founded (excluding Pixar films post-acquisition). There aren’t many because most of Disney’s talent left around when Pixar was founded. Without movies to continuously hook new kids, their entire empire is a house of cards.

Moana, obviously.

96% on RottenTomatoes, critically acclaimed, 12th-most profitable release of 2016.

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#118
post #91

Earlier quoted context omitted.

Just Eat are getting too big. They destroyed Hungry House by buying it a few years ago. This was before Deliveroo and Uber Eats were known to most people. Seems like Just Eat are afraid of competition.

I was not aware of Hungry House. but you're right! They purchased them too [1]. Yeah it feels like a "screw it" lets do this type of move from Takeaway.com/Just Eat. From my research it looks like Just Eat are threatened by competition and re-entry into the market from Amazon. $500m investment could really push Deliveroo on. I see similaries between Deliveroo and Amazon in wanting to provide very quick delivery servi…

Well, the big difference between GrubHub/Just Eat and Deliveroo/Uber is that the former were actually profitable software businesses, while the latter are VC funded blitzscaling nonsense.

But now the profitable companies are forced to run unprofitable delivery networks because of the VC funded (well public market funded for Uber now) hype-train of on-demand.

Is there a Gresham's law for business models or something?

Re: Just Eat Takeaway to acquire Grubhub for $7.3B

#119
post #66

Earlier quoted context omitted.

Competition... monoply. Ubers Eats and Deliveroo have massive control. I think what many of the players are concerned about is Amazon entering the market via Deliveroo investment of $500m. https://www.gov.uk/cma-cases/amazon-deliveroo-merger-inquiry

FYI Amazon already left the "hot" food delivery market. Amazon Restaurants was killed

Yes, I did mention that in my own comment. I can only imagine Amazon are desperate to re-enter... I mean they seem set-up for this to happen eg infrastructure. Hence, why they are investing in Deliveroo, who are also setup pretty well. In fact I reckon the investment in Deliveroo and potential acquisition of Grubhub by Uber is what shook Takeaway.com (Just Eat) into this panic buy haha
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