Presentación de Jerome Gavin (Just Eat) en Off/On Commerce Day 2013

1. OFF/ON COMMERCE DAY
JEROME GAVIN – COUNTRY MANAGER
16/10/2013

2. AGENDA
1. A successful business model
2. Why consumers are moving online?
3. Why restaurants are moving online?
4. Conclusions

3. OUR BUSINESS
MODEL
3

4. from offline…
…to online
A SIMPLE CONCEPT
Consumers
Website
Order transmitted to DR
over mobile network
Box alternative design
Order & pay
online
Indian
Burger /
Chicken
/pizza
Oriental
Middle
Eastern
Italian
Pizza
Generic
food
THE
PLATFORM
Delivery Restaurants (DRs)
DR accepts order
(JUST EAT processes
payment and holds DR cash
prior to distribution)
Just connect terminal (JCT)
Delivers to
consumer
►
Substantially all orders go
through JCT
►
Provides significant
operating efficiencies and
ability to scale at minimal
cost
►
Can be utilised as
communications tool to
global DR network
4

5. HOW DOES IT WORK?
from offline…
…to online
5

6. A SIMPLE BUT GREAT
REVENUE MODEL
from offline…
…to online
Minimal credit risk as JUST
EAT holds restaurant cash
Restaurant driven
Order driven
► Sign-up revenues – DRs
pay to join the network
► Commission revenue on order
value
-
Varies by country, average
c.10%+ of order value
This comes out of the restaurant
revenue
Consumers pay the same price
through JUST EAT
-
+
► Additional B2B revenues
-
Top-Placement – directory
model (charge DRs to be
listed at top of searches)
-
Restaurant products – pizza
boxes, bags, menu-cards,
etc.
► Credit-card charges
-
c.56% of orders are paid for via
credit card
-
JUST EAT charges small fee
-
Pricing varies on market
maturity
JUST EAT holds cash on behalf of
restaurant
6

7. from offline…
…to online
13 COUNTRIES – MARKET LEADER
IN 12 TERRITORIES
Launch / acquisition timeline
DK
2001
UK
2002
Canada
Launched in Aug-09
2003
2004
2005
Ireland
Launched in Apr-08
2006
NL
2007
UK
Launched in Mar-06
IE
BE CA
2008
2009
NO
ES IN CH IT BR FR FMB (UK) SD (ES)
2010
2011
Norway
Launched in Dec-09
2012
Denmark
Launched in Aug-01
Belgium (Flemish
reg.)
Launched in Apr-09
India
Acquired in Jan-11
France
Acquired in Dec-11
Current presence
Brazil
Acquired in Sep-11
Spain
Launched in Nov-10
Switzerland
Acquired in Apr-11
Netherlands
Launched in Jul-07
Italy
Acquired in May-11
7
2013

8. 2012 IN ROUND NUMBERS








750M€ food value.
85%+ growth in revenues.
40,000+ restaurants world wide.
26.5M orders.
8M registered members.
Facebook fans: 1.7M
13 countries – 4 continents.
1,000 employees (800 FTE)

9. WHAT ABOUT SPAIN!?
from offline…
…to online

10. SOME RECENT NUMBERS
from offline…
…to online
►10M€+ food value YTD.
►300%+ growth in revenues, demand and offer.
►2000 restaurants accross the country.
►70K+ orders / month
►200,000 members
►Facebook fans: 75,000
►50+ employees
►11,000€: spending of our top consumer.
►Most addicted user orders every two days.
►Definitely a new way of ordering food

11. JUST EAT SPAIN PERFORMANCE
from offline…
…to online
► Spain is currently the fastest-growing market in Just Eat history
► Order performance at Month 33 is better than Canada and the UK

12. WHY
CONSUMERS ARE
MOVING
ONLINE?
12

13. 2.5M HUNGRY SURFERS
from offline…
…to online
► In 2011, MPG target analysis implied:
▸ 2.5M people use internet daily and order a takeaway at least once a month.
▸ Equal split boys and girls: 53% male and 47% female.
▸ Age group: 14 to 44 years old with peak around 20 to 24.
▸ Status:
▸
▸
▸
students, full day active people, working late professionals.
Middle to Middle-Top class.
Divorced, married, or young single still living at parents´home.
▸ Madrid, Barcelona primary cities – in a second tier: Canaries Island, Balears,
Valencia, Andalucia regions.
▸ City size: big cities over 500K people or medium like 10K – 200K people – helpful
to make a clear cut in a region of interest like Valencia province for instance.

14. CORE TARGET GROUP Nº1:
Game boy generation & treasures hunters
from offline…
…to online
▸ Age: 20 to 34 years old.
▸ Where do they live? Usually in big cities (over 500K) or
medium ones (10K to 200K)
▸ Whether they work and where: student, first job, normal full
time job.
▸ Marital status? Usually single. Most of them between 20 to 30
years old still living at parents house. Or engaged without
children.
▸ What media they consume? High internet usage; Sport press;
Bi-weekly magazines; Cinemas.
▸ What’s their lifestyle? Like going out but also enjoy being
home spending time in front of their PC ; multi tasking; gamers
and bargain hunters; have time.

15. from offline…
…to online
OTHER LOCAL OBSERVATIONS
*
► Born in the tech era, they have an advanced internet usage: studies,
communication (emails, chat, SM), searches, entertainment (gaming,
downloads, videos).
► When they are buying online, they are looking for:
▸ Convenience.
▸ Good price (very price sensitive audience – bargain hunters).
▸ Large offer.
▸ Recommendations and reviews.
► Their trust in internet or ecommerce portals is above average but they
want guarantee on the product and the service (like money back).
*: Source: Salvetti

16. CORE TARGET GROUP Nº2
“Because I deserve it”
from offline…
…to online
▸ Age: 35 to 44 years old.
▸ Where do they live? Usually in big cities (over 500K) or
medium ones (10K to 200K).
▸ Whether they work and where: Normal full time job or
professional working late.
▸ Marital status? Usually married with young children or
divorced.
▸ What media they consume? All medias – lower internet
usage than previous group.
▸ What’s their lifestyle? Busy people. Urban.

17. OTHER LOCAL OBSERVATIONS *
from offline…
…to online
► They usually use Internet for professional purpose….but also for saving time,
online banking, and shopping.
► They see Internet as a perfect tool for the above mention tasks.
► When they are buying online, they are looking for:
▸ Convenience.
▸ Good service (delivery time, customer care).
▸ Good price.
▸ Large offer.
▸ Recommendations and reviews.
► They do not only buy online or themselves but also for their kids and partners
(vs previous group).
► Their trust in internet or ecommerce portals is above average.
*: Source: Salvetti

18. SPECIFITIES OF OUR MARKET
from offline…
…to online
► There is low culture of home takeaway in Spain, mainly due to:
▸ The good weather. Outside culture. Eating is social.
▸ Stores/shops stay open late (till 22h30).
▸ Young people staying at parents 'home till their 30s´and enjoying their mum´s food.
▸ Slow Internet penetration.
▸ Online: Lack of offer and variety of cuisines and existing players assuming the delivery.
► Home delivery market was dominated by pizza chains.
However……
► Food habits are changing: 2.5M people use internet daily and order online takeaway once a
month.
► The young people are leading the way in Europe in SM, Videos, Games consumption.
► Fast food & Takeaway sector grew 3%/4% YOY for the last 2 years, despite the crisis.
► People wants more choice than just pizzas when they search for food.
► Ecommerce in Spain does not have a problem of demand but a problem of supply.

19. WHY
RESTAURANTS
ARE MOVING
ONLINE?
19

20. MODERN AND PROFITABLE TOOLS
BENEFICIOS
from offline…
…to online

21. ONLINE CUSTOMER SPEND MORE
MONEY AND ALSO REPEAT MORE OFTEN!
from offline…
…to online

22. from offline…
MARKETPLACES ARE THE REVOLUTION
…to online
►No matter the industry today, all big “retailers” are
selling on the “leading marketplaces” of their sector.
▸ HP, IBM, Macy´s, Vodafone, Canon, Sony, Universal, Dell, Bose, Disney, on
EBAY o AMAZON.
DOMINO´S
NEW YORK PIZZA
PIZZA GOGO
PAPA JOHNS
PIZZA GOT 4U
ITSU
GOURMET ORIENTAL
PIZZA HUT
SUSHI SHOP
PLANET SUSHI
Small and medium sizes chains
………

23. CONCLUSIONS
23

24. STRONG CONSUMER PROPOSITION
from offline…
…to online
JUST EAT is the best online and mobile takeaway solution
Quick & Easy
► Always have a menu
► No language barriers
► Store favourites and personal details
► Pay cash on delivery or with
credit/debit card
► Card details taken by JUST EAT
not the DR  Secure
► Mobile ordering
Choice
► Postcode search
► Consumer reviews
► Filter by:
- Restaurant type - Cuisine
- Rating
Value
► Easier for restaurants to promote
special offers
► Consumers track spend when
building an order
- Location
24

25. ATTRACTIVE RESTAURANT PROPOSITION
Restaurants
Leverage JUST EAT brand
► Huge online presence
Hassle-free orders and
more of them
► Clear print out
Part of a wider network
► Collective buying
- No.1 on “delivery” &
“takeaway” search
► Conferences
► Well recognised TV
commercials (and other
advertising)
► JUST EAT acts as stamp
of credibility (branded
DRs)
► Free up the phone line
► Sales visits, etc.
Blade sign
► Offer platform
Indian
Burger /
Chicken
/pizza
Oriental
Middle
Eastern
Italian
Pizza
► Minimal staff time /
commitment
► Marketing promotions
Generic
food
- Targeted and relevant offer
More orders = the real compelling value proposition to restaurant
25

26. SHIFTING FROM OFFLINE TO ONLINE
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27. THANK YOU FOR YOUR TIME!
ANY QUESTIONS?