(ABM FN-Dow Jones) The City of New York has decided to make current food delivery regulations permanent, including rules on maximum commission. This could be the end of the exercise for Just Eat Takeaway.com in New York. IG analysts said on Monday.
The commission is capped at a maximum of 15 percent. For platforms that do not deliver themselves, the ceiling is 5 percent of the order. Consumers may be assessed separately, but restaurants cannot.
The new rules give delivery platforms such as Uber and DoorDash a key competitive advantage over Just Eat Takeaway.com, IG analysts said.
Grubhub, which was acquired by Just Eat Takeaway.com, charges more than 20 percent commission as standard. In 2020, the average was 21 percent on gross meal sales. “With that Grubhub was not yet profitable. That is why 5 percent is a problem, since turnover drops 75 percent,” said IG analyst Robbert Manders. “The deliverers can charge the consumer for delivery. Just Eat cannot do that under the platform model. They also deliver, but that is not their strong point or focus of the strategy.”
CEO Jitse Groen already responded on Twitter that Just Eat Takeaway.com already took New York’s decision into account in the outlook and that the CEO will oppose these regulations.
“The big problem is that Uber and DoorDash were already catching up on Just Eat in New York and this law may be the end of exercise for Just Eat Takeaway.com in New York,” says Manders.
On Friday, the share in Amsterdam closed about 7.5 percent lower. “New York is expected to account for a maximum of seven percent of Just Eat’s turnover. The exchange rate loss is then a lot, since Just Eat can also be right in court and it was already in the outlook,” said the analyst. from IG.
Bron: ABM Financial News
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From Beursplein 5, the editors of ABM Financial News closely follow developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
