Just Eat Takeaway.com SWOT and PESTLE Analysis

Strength

1. Brand strength and presence driving organic restaurant growth and sales: Just Eat Takeaway leverages its global brand to acquire more restaurants every year. Higher the number of restaurants that get covered by its platform, greater the variety for consumers to find at a single place, resulting in more consumers signing up on the platform. This in turn gives incentive to restaurants to promote themselves on the platform which results in increased number of restaurants joining Just Eat Takeaway. In FY20, more than 70,000 new restaurants signed up on the company’s platforms, which happened partly because of the pandemic related restrictions and partly due to brand’s expanding presence and success.

2. Robust logistics capabilities leading to higher number of orders: Just Eat Takeaway’s superior delivery infrastructure allows the company to cater to varied demands, ranging from restaurants offering niche cuisines to international chains offering standardized items. These offerings attract more customers to the platform, increasing the number and size of orders through Just Eat Takeaway. The company currently uses three types of delivery services to complete its orders. Scoober is the legacy delivery service of Takeaway.com, followed by the service from its Canadian acquisition SkipTheDishes and third-party delivery companies.

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Weakness

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Opportunity

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Threat

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Political

1. Junk food commercial regulation by EU to reduce potential customers: The European Union has recognized obesity as a serious health problem and wants to take pro-active measures to curb errant eating habits in the European Union as much as possible and promote course corrections. The European Commission has outlined self-regulatory measures for food companies, which include restrictions in advertising of junk food to children and labelling such products explicitly as junk food or HSSF (High in Sugar, Salt and Fats). Such labelling practices would help raise an alarm by tagging with red flags. Although aligning with these regulatory measures is not mandated by law, if companies are seen to falter, it is expected that these may be upscaled to a legislation. These restraints surrounding junk foods, will lead to loss of opportunity for high growth companies like Just Eat Takeaway, as children are massively attracted to junk food and form a lion’s share of their customer base.

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Economic

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Social

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Technological

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Legal

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Environmental

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