UK-based takeaway service Just Eat has announced its earnings results for the first half of 2015, revealing a 54 per cent increase in revenue in 12 months.
Revenue is not the only positive metric, Just Eat noted a 52 per cent increase in orders; a 59 per cent increase in active users and £235 million increase in revenue from processed orders.
Active users went from 6.9 million to 11 million in the space of 12 months, a huge increase for the online takeaway service. Just Eat is still the largest takeaway service in the UK, with Hungryhouse and Dominos coming second and third.
"Just Eat has made a very strong start to 2015, increasing the numbers of active users, takeaway restaurants and orders,” said Just Eat CEO David Buttress. “We have seen the success of our ongoing strategy to reinvest profits above target to drive additional growth. I am particularly pleased to see the results of our mobile strategy which has already created a much improved experience for our app and mobile users.”
Just Eat makes revenue from each order, taking a small percentage of the payment from the customer. This is usually tagged onto the delivery, with a lot of takeaways offering free delivery by phone but £1 to £3 on Just Eat.
Speaking on online ordering, Just Eat claims customers are more likely to spend more when checking the menu online. This seems evident with the 10p growth in revenue per customer over the 12 month period.
The company also posted an underlying profit of £25 million, up £9.9 million on last year’s earnings. All seems to be going well for the company, which continues to surge in the UK and other European countries.
The food delivery market is growing at a rapid pace, as more food and drink is shipped directly to the customer’s door instead of being bought at a store. Services like Graze, Pact Coffee, Ocado and Gousto are all seeing more customers every week. Tesco, ASDA, Morrisons and Sainsbury's are all investing more time into online shopping as well, to serve the millions of customers that want groceries delivered directly to their home.