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Just Eat Takeaway to acquire Grubhub for $7.3B

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

#121
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?

> Won't this create a massive monopoly?

They wish. Just Eat are just using Grubhub as a way to enter US market. But, theres already too many players in US. Doordash, Postmate, Grubhub, Uber Eats

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

#122
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…

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

Restaurants handle this issue in many different ways. I have been to several who explicitly state that all tips are divided & shared among all employees, and I think this is a good model. I've also seen one with a separate tip jar for kitchen staff, which may be a better option in some places. Really, why should the server make more than the cook or the dishwasher? Are they actually working harder? [I know, their wages are often structured differently, but I question whether they should be.]

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

#123

Genuine question: why? I completely understand acquisitions that create value by providing economies of scale, monopoly power or network benefits, or diversify or complement a company's activities. But for a European market leader to buy an American market leader in what is ultimately an extremely local business... I see no real added benefit here. Few further economies of scale when you're already at continent-size…

It's a winner takes all niche. Either you reach a point of scale or never see a break even.

Takeaway wiped out the competition in EU and it was a billion € marketing budgets battle.

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

#124

Genuine question: why? I completely understand acquisitions that create value by providing economies of scale, monopoly power or network benefits, or diversify or complement a company's activities. But for a European market leader to buy an American market leader in what is ultimately an extremely local business... I see no real added benefit here. Few further economies of scale when you're already at continent-size…

Tax optimization - easier to funnel out money if all your subsidiaries are lending IP belonging to the same company in the Cayman Islands. Bigger the market, more "lending" from the tax-free IP holder, and less taxes payed on both sides of the Pond.

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

#125

Earlier quoted context omitted.

I prefer Grubhub/Seamless in NYC. They're typically on bicycles or scooters and will bring the order up to your apartment door. Uber Eats people usually want you to come down outside so they don't have to double-park. I'm not giving you a $10 delivery tip to drive my Five Guys order eight blocks.. You gotta get out and come up the stairs to my door.

or you could, ya know, walk 8 blocks and keep the restaurant in business, but hey, we all have our limits.

This is what I don't get. As soon as I started reading about all the unfair business practices by delivery companies, I just started picking up my food. Gets me out of the house, removes the middle man, supports local business while cutting out the larger business that funnels wealth to the top echelons. What's not to love?

If it's hot outside or whatever, it's still a small price to pay for doing the right thing.

Are United Statesians addicted to convenience?

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

#126
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…

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

At least it still avoids all the other problems, not to mention the domain squatting, misrepresentation of search results, and of course the upcharge on your end and the downcharge on the restaurant's end.

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

#127
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…

Yes, but a restaurant wouldn't be entering into these special deals if it wasn't beneficial to them as well. Even if the margins are much lower, it could be offset by the increase in number of customers/orders.

I've talked to people who run restaurants and in their words uber eats is not worth it economically. They just do it, barely breaking even, as a marketing thing, hoping people will like the food and go to the real place.

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

#128

Is it just me or are all these delivery apps pretty much the same thing, just with different restaurants? In SF at least Grubhub tends to have some of the more "typical delivery" choices (pizza, chinese food, thai) and decent customer service, Doordash seems to have the most variety but the dashers take their merry time on their way to you (and customer service is nonexistent), Uber Eats is somewhere in between grubh…

>Is it just me or are all these delivery apps pretty much the same thing, just with different restaurants?

Yes.

However the financial incentive is for these restaurants is to eventually have their own ordering systems.

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

#129
Lol...

These companies do realize that these numbers are incredibly not locked in right? Like Grubhub's business could be taken in a week by any other app because they don't own the endpoint, just the middleman. Sure they have some exclusive deals but this is an incredibly inflated value for what is effectively a API connection and little actual market ownership.

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

#130

Earlier quoted context omitted.

or you could, ya know, walk 8 blocks and keep the restaurant in business, but hey, we all have our limits.

This is what I don't get. As soon as I started reading about all the unfair business practices by delivery companies, I just started picking up my food. Gets me out of the house, removes the middle man, supports local business while cutting out the larger business that funnels wealth to the top echelons. What's not to love? If it's hot outside or whatever, it's still a small price to pay for doing the right thing. Ar…

Pretty much. Though one factor is in the US there's really dumb zoning concepts that basically led to longer drives to get to business areas. This is why bicycles never really caught on as a major mode of transport in the US, a 5 minute bike ride is one thing to get lunch, a 20 minute ride without any dedicated paths and often restaurants being placed in a shopping hub like area designed around highway access is a different story. It's all a sort of hassle so many people may prefer just ordering in, but yeah otherwise we are pretty lazy lol. Also, on 'doing the right thing'.

Have you seen who we picked as president?

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