Just Eat delists from the London Stock Exchange: A comprehensive look at its journey

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On December 27, 2024, Just Eat Takeaway, one of the most prominent names in the food delivery industry, will delist from the London Stock Exchange (LSE).

This decision highlights the company’s shifting operational focus and the challenges faced by global tech firms in today’s complex financial landscape. Here’s a closer look at Just Eat’s journey, the implications of its delisting, and answers to key questions about the company.

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The History of Just Eat: From Local Innovator to Global Player

Founded in 2001 in Denmark, Just Eat pioneered the online food delivery space by connecting restaurants with customers.

It expanded to the UK in 2006, which soon became its most significant market. In 2014, Just Eat listed on the LSE in one of the year’s most successful tech IPOs, valued at £1.5 billion.

In 2020, Just Eat merged with Amsterdam-based Takeaway.com, forming a global giant. The newly combined entity became a major player in the food delivery sector, operating across 15 countries.

Today, Just Eat in the UK remains the dominant brand for takeaway and delivery, while in the U.S., it operates under the name Grubhub, following the acquisition of the American company in 2021.

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Why Just Eat Is Delisting from the LSE

Several factors have driven the company’s decision to consolidate its listing on Euronext Amsterdam:

1. Administrative Complexity and Costs:
   Managing dual listings in London and Amsterdam has become increasingly burdensome. By focusing on a single exchange, the company can streamline compliance and reduce operational costs.
2. Low Trading Activity in London:
   The majority of Just Eat’s trading volume occurs on the Amsterdam exchange, rendering the LSE listing less valuable.
3. Alignment with Strategic Headquarters:
   The company’s headquarters are in Amsterdam, making Euronext a more logical choice for its primary listing.

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How Does Just Eat Make Money?

Just Eat generates revenue through multiple channels, primarily by acting as an intermediary between restaurants and customers. Its business model includes:

• Commission Fees: Restaurants pay a percentage of each order placed through the platform.
• Delivery Fees: Customers are charged delivery fees when using Just Eat’s delivery services.
• Advertising Services: Restaurants can pay for enhanced visibility on the platform, such as priority listings or promotional campaigns.

Additionally, as the owner of Grubhub in the U.S., Just Eat earns through a similar combination of commissions, service fees, and advertising options.

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Implications of the Delisting

The delisting from the LSE has significant implications:

1. For Investors:
   Shareholders will need to trade Just Eat shares on Euronext Amsterdam after December 24, 2024, as trading on the LSE will cease.
2. For the UK Market:
   The departure of a high-profile tech company is a setback for the LSE, which has struggled to retain international firms amidst stiff competition from other exchanges.
3. For Just Eat’s Operations:
   While leaving the LSE streamlines its financial management, the company maintains a strong presence in the UK market, where it is known simply as Just Eat and operates with over 97% market penetration.

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Key Questions About Just Eat

1. What Is Just Eat Called in America?
   In the U.S., Just Eat operates under the brand name Grubhub, acquired in 2021 to expand its presence in the American market.
2. Who Owns Just Eat?
   Just Eat is owned by Just Eat Takeaway.com N.V., a Dutch multinational company headquartered in Amsterdam. It was formed through the merger of Just Eat and Takeaway.com in 2020.
3. What Is Just Eat in the UK?
   In the UK, the brand operates under the name Just Eat and is synonymous with takeaway and food delivery services. It remains the market leader, serving millions of customers.
4. How Do You Earn Money on Just Eat?
   Restaurants earn by selling food through the platform, while the platform itself earns via commission, delivery fees, and advertising services. Additionally, drivers contracted by Just Eat can earn money by delivering orders.

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What Lies Ahead for Just Eat?

Just Eat’s exit from the LSE is a reflection of the evolving priorities within the tech and food delivery sectors.

By consolidating operations, the company aims to focus on efficiency, profitability, and market leadership in a competitive landscape. However, the move also signals broader challenges for the UK’s financial markets, which face increasing difficulty in retaining international tech firms.

For Just Eat, the delisting is not the end but the start of a new chapter—one that will test its ability to adapt to a rapidly changing industry while retaining its dominance in core markets like the UK and Europe.

Sources: Financial Times, City AM, The Caterer.

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