Takeaway.com and Just Eat have finalised the terms of their tie-up. The merger will help the company, to be called Just Eat Takeaway.com, to further penetrate the high growth food delivery services market, which is estimated to be worth $100 billion. In a fast-moving sector, app companies must establish recognisable brands with strong reputations in order to tackle new markets and retain existing customers. When it comes to brand strategy, Just Eat and Takeaway.com, use it as a way to both attract customers and boost business partnerships.
Delivery sales overtook restaurant sales years ago, but the industry is changing to embrace the digital wave. This has made the next biggest source of delivery food app services. The industry is therefore a rapidly evolving one – still in its early stages, there are opportunities abound for major players to claim new territories. This has led to a number of purchases, acquisitions and brands trading hands.
Just Eat and Takeaway.com take branding seriously
Just Eat was founded in 2001 and has since grown to operate across 13 countries. In order to establish its presence, it used four brands (Just Eat, Skip the Dishes, iFood and Menulog) which are found exclusively in their respective regions.
The London-headquartered company highlighted the need for a strong brand strategy In its annual report. It argues that a recognisable global brand will encourage more restaurants to enter into a partnership, further maximising business. Just Eat invests heavily in marketing to ensure its brand and image is kept intact.
Takeaway.com was founded in 1999, and similar to its counterpart it possesses a number of brands which are unique to their country of operation – a so-called ‘single brand strategy’. According to Takeaway.com’s annual report, the company thinks that this is the best and most effective way to reach consumers. It allows special focus to be paid to each brand and ensures a ‘no one size fits all’ approach. Brand awareness was flagged as a top priority, with Takeaway.com stating that it will continue to acquire other companies to expand its presence in new markets.
Brand Finance places Takeaway.com’s brand value at $356 million and Just Eat’s at $650 million. To compare, Uber Eat’s brand value is $1,803 million and Grubhub’s is $1,071 million.
Although the online food delivery industry is still in its infancy it is becoming extremely competitive. The major players are reinforcing their presence in existing markets, as well as pushing into new territories. Takeaway.com’s merger with Just Eat will help it compete with the likes of Uber Eats, who currently leads the industry. Acquisitions will likely continue, as brands which locals are familiar with are the best way to penetrate new markets.
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