Commerce | E-commerce » Food Delivery Tech, Battle for the European Consumer

Source: http://www.doksinet Food Delivery Tech: Battle for the European Consumer Research by data contribution from March 2017 Source: http://www.doksinet About Dealroom ■ ■ ■ ■ Consolidating multiple data sources Founded in 2013 in Amsterdam, Dealroom provides a 360° view on Europe’s high-growth industries, tracking over 500,000 companies and 10,000 investors in Europe and beyond Dealroom enables venture capital & private equity firms, corporates, consultants and investment banks to find growth opportunities, conduct market intelligence research, and stay ahead of developments Data is sourced and consolidated from multiple sources, including: internal manual research; contributions from over 12,000 local market experts such as journalists, VCs and founders; automatic data feeds and crawlers; machine learning and natural language processing to organise data and spot below the radar companies Authors of this report: Yoram Wijngaarde (yoram@dealroom.co)

Founder & CEO at Dealroom Formerly M&A at Lehman Brothers and NOAH ■ Sara de Miguel (sara@dealroom.co) Data Analyst at Dealroom Carlos III University, Madrid Automatic data feeds and web crawlers Manual curation & research by Dealroom Machine learning and natural language processing resulting in rich data-driven intelligence Dealroom membership is free ■ 12,000+ contributors (founders, VCs, analysts) 2 Source: http://www.doksinet About Priori Data Priori’s crawlers collect Public Data from App Stores. ■ Priori Data is a leading mobile market intelligence company ■ Priori’s solutions provide customers with insights to help them understand, benchmark, and track their mobile market share so that they can win their mobile markets ■ Priori enables app businesses, agencies, marketers, and analysts to benchmark performance against competitors, reveal competitor mobile strategy, discover new opportunities, and identify emerging trends in the app

stores ■ The Company was founded in Berlin in 2013 by alumni of Morgan Stanley, Google, and the University of Cambridge APPS PUBLISHERS TOP CHARTS COUNTRIES LANGUAGES 4m+ 1m+ 35k+ 57 35 .which is combined with Confidential Data from partners PARTNER APPS PARTNER PUBLISHERS MONTHLY DOWNLOADS MONTHLY REVENUE 20k+ 1k+ 150m+ $50m+ Resulting in global, real-time Proprietary Data on apps Contributors to this report: ■ Patrick Kane (patrick@prioridata.com) Founder & CEO at Priori Data Vestar Capital Partners, Morgan Stanley, INSEAD ■ Simon Singharaj (simon@prioridata.com) Director of Marketing at Priori Data Jumia, Microsoft, EDHEC Competitive Tracking Market Trends API Source: http://www.doksinet Contents 1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Source: http://www.doksinet Introduction ▪ ▪ This report combines proprietary data from Dealroom and Priori Data with

annual reports, investor presentations and equity research from Just Eat, Takeaway.com and Rocket Internet SimilarWeb data was used for online usage By combining these data-points, a market model was constructed to estimate the size and market share of key European markets Eating habits ▪ ▪ ▪ Consumers are seeking convenience, resulting in a drive towards on-demand delivery and away from home-cooking Supermarkets are most likely to lose in this trend. Prepared grocery models (HelloFresh) are gaining scale, but economically not validated yet Majority of restaurants see trend as “a good thing for business” according to a recent UK survey by Morgan Stanley Consolidation and IPOs ▪ ▪ ▪ Just Eat and Takeaway.com have so far benefitted the most from this trend, through asset-light software-only operations with 50%+ margins Both outperformed: Just Eat’s share price more than doubled in 2 years since it’s IPO. Takeawaycom is up > 40% since their Oct ‘16 IPO Their

model requires #1 or #2 market position to be profitable. Result: a wave of consolidation, and still more M&A anticipated (France?) Increased competition ▪ ▪ ▪ Deliveroo, Uber EATS and Amazon entered the market and scaled rapidly with a model offering full-service logistics This model involves more operating risk and requires enough population density (and higher order value) to work (Take Eat Easy failed) So far, these new models have not taken share from existing online marketplaces, but rather created a new premium market segment ▪ Delivery Hero (38% Rocket owned) is likely getting ready to IPO. However, it is being challenged in some key markets by Takeaway (Germany, Poland) and Just Eat (Italy). It absorbed loss making Food Panda but still lacks a clear cash-cow market position anywhere Conceivable that Delivery Hero is instead acquired by someone like Priceline, Expedia, Recruit Deliveroo was hit with strikes after trying to convert its drivers to a

pay-per-delivery wage Uber lost some of its aura of invincibility. But now another powerhouse is also around the corner: Amazon Fully integrated models with own kitchen have struggled to make economics work (Spoonrocket closed) but others (Sprig, Maple, Forky) are working to get the economics right About this report Challenges Outlook ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Just Eat and Takeaway.com has so far enjoyed a rapid path to profitability (Takeawaycom built a €1 billion business in relatively small market) There is still big upside, as online penetration of delivery and take-out is only about 15% in many parts of Europe (50% in UK and 30% in NL) The various models (Deliveroo vs. Just Eat) might soon converge: Just Eat is already starting to offer logistics services to restaurants to continue expanding their footprint. Delivery Hero is heavily investing in the roll-out of Foodora, its full-service logistics brand The last mile and waste reduction are key to further unlocking the

potential: high hopes for autonomous delivery (e.g Starship Technologies) 5 Source: http://www.doksinet Eating habits are evolving. Convenience is the driver Grocery Delivery Delivery & portal Prepared Groceries Food Delivery Restaurant Bookings Own fleet Delivery software Online Supermarkets: Vertically integrated : 6 Meal Substitutes Agritech Waste Reducing Source: http://www.doksinet Contents 1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Source: http://www.doksinet Key considerations between the various models. Operating risk ranging from low to very high Home cooking No cooking Supermarkets Prepared groceries Software only Own fleet & logistics Vertically integrated Online supermarket eCommerce Weekly boxes of around €50-100 / box 12-15% commission / restaurant does delivery 30% commission + delivery fee Own kitchen and delivery logistics Positives: Positives:

Positives: Positives: Positives: v Huge market v Migration online v High customer life-time value v Revenues growing 15% YoY v EBITDA margin 7% v Nearly 1 million active subscribers Avg € 750 revenue per sub v Starting to focus on profitability by reducing marketing spend (but: churn and LTV are undisclosed) v Just Eat and Takeaway beating expectations v Autonomous delivery potential v New entrants (Deliveroo, Amazon, Uber are targeting different premium segment, so far) V EBITDA margin 50-60% in strong markets v Ability to advertise on packaging and on delivery vehicles v Autonomous delivery potential v Own kitchen to optimize fleet utilisation v Model works best in dense + affluent areas v Positioned as premium v Entire GMV equals revenue v Domino’s UK has validated this business model, at scale: 10% revenue growth 25% EBITDA margin Considerations: Considerations: Considerations: Considerations: Considerations: x EBITDA-Capex negative x Cooking is losing its appeal x

Prevailing wisdom in tech circles that this is a winner-takes-all logistics play that may well become dominated by Amazon x Still EBITDA negative. Cost structure: Cost of goods 43% Fulfilment cost 35-40% Marketing cost: 30% (discretionary) Other opex: 3% = => Negative 15% EBITDA margin x Difficult economics in competitive and new markets as low as 100% (FoodPanda) or close to 0% (Germany) x May need to soon invest in logistics to continue growth) x Foodora is highly loss making for Delivery Hero, but it continues to invest heavily in roll-out x Take Eat Easy closed operations x Dealing with rider strikes x Amazon moving in too x Operating risk: capacity utilization, minimal waste are key x Spoonrocket x Less choice for consumer (one menu) Market verdict: Market verdict: Market verdict: Market verdict: Market verdict: - Market values Ocado at EBITDA multiples similar to Amazon (17-18x 2017E EBITDA) - Push to profitability, which will curb growth - Strong performance of

public players - No clear sign of Delivery Hero IPO yet - Strong VC backing of Deliveroo model - Domino’s is valued 17-18x EBITDA - VCs hesitant following SpoonRocket 8 Source: http://www.doksinet Unit economics vary widely per model and depending on market position and growth stage Prepared groceries (HelloFresh) Software only (Just Eat, Takeaway, Delivery Hero) Developed Developing Market market, but markets leadership competitive Own fleet (Deliveroo, Uber EATS) Lower Affluent & density densely areas populated Growth phase Steady state € 75.0 100% € 75.0 € 75.0 100% € 75.0 € 12.0 12% € 1.4 € 20.0 12% € 2.4 € 20.0 15% € 3.0 € 20.0 30% € 6.0 -/- COGS -/- Labour / packaging = Product margin per order 45% 35% € 15.0 40% 30% € 22.5 – – € 1.4 – – € 2.4 – – € 3.0 -/- Delivery = Gross margin per order (€ 1.5) € 13.5 (€ 1.5) € 21.0 € 1.4 € 2.4 -/- Marketing -/- Other unit costs (2) = EBITDA per unit

(€ 25.0) (€ 1.5) (€ 13.0) (€ 5.0) (€ 1.5) € 14.5 (€ 1.8) (€ 1.0) (€ 1.3) (€ 1.5) (€ 1.0) (€ 0.1) Per order: Order value x = (1) Commission Net revenue per order Fully integrated (Forky, Sprig, Maple) Developing market Developed leadership € 30.0 35% € 10.5 € 10.0 100% € 10.0 € 20.0 100% € 20.0 – – € 6.0 – – € 10.5 40% 35% € 2.5 30% 30% € 8.0 € 3.0 (€ 5.0) € 1.0 (€ 4.0) € 6.5 (€ 5.0) (€ 2.5) (€ 3.0) € 5.0 (€ 0.5) (€ 1.0) € 1.5 (€ 2.5) (€ 1.5) (€ 3.0) (€ 1.0) (€ 1.5) € 4.0 (€ 2.5) (€ 1.5) (€ 6.5) (€ 1.0) (€ 1.5) € 2.5 50% 38% 19% 13% % EBITDA margins: (4%) (17%) Source: Dealroom estimates, annual reports, interviews. Delivery costs assume 25-3 rides per hour and €10/hour wage 1. Blended rate net of payment fees 2. Estimate by Morgan Stanley, Dealroom (based on public peers) (50%) (91%) 9 (65%) Source: http://www.doksinet Profitability for meal kit

delivery businesses: potential path to profitability for HelloFresh Steady state (1) Today actual 120% Negative 12% EBITDA margin 100% Run-rate revenues circa €1 billion 80% 60% 40% 20% Loss-making (5%) (7%) Negative 7% gross margin 5% 28% Marketing 1,250 active customers Avg. revenue per customer = circa €175 in Q2 2017 37% Fulfilment (labor, delivery) Both revenues and customers growing at healthy 53% YoY 41% Cost of goods General & Admin costs: seem low Positive 9% EBITDA margin Negative 10% EBITDA margin Profitable 9% 5% Growth phase: higher than Blue Apron Higher than Blue Apron. HelloFresh sees upside Today actual Question is how much revenue growth would be impacted by reduced marketing spend Positive 7% gross margin 5% 15% Marketing 30% Fulfilment HelloFresh claims it can go as low as 5% Blue Apron level Profit margin Cost of goods sold: in line with Blue Apron As per 2017 H1 Expenses 41% Income . 943 active customers (10%) 28% 17%

Positive 17% gross margin Avg. revenue per customer = circa $250 in Q2 2017 14% Marketing 29% Fulfilment Revenues still grew (only) 18% YoY in Q2 Cost of goods Number of customers declined from 1,036 in Q1 Expenses Income – Income Run-rate revenues circa $1 billion Gross profit & net loss Profit margin Illustrative Dealroom estimates Source: Dealroom estimates, company reports. 10 . 39% Cost of goods Profit margin As per 2017 Q2 Expenses General & Administrative costs much higher. Potentially includes quasidirect costs. Source: http://www.doksinet Unit economics in food delivery: path to profitability for Deliveroo (and Delivery Hero’s Foodora) Order-only platform model (2) Integrated delivery model (3) Amounts per order € 12.0 € 10.5 38% profit € 10.0 € 9.0 € 8.0 € 6.0 50% loss Once market leadership is achieved, marketing costs drop significantly, and margins well above 50% are the norm 91% loss margin before general expenses

occurs in some new markets € 1.5 Other € 6.0 € 6.5 € 2.5 Avg. order €30 x 35% commission Marketing Other € 1.0 € 4.0 91% loss € 2.0 € 1.5 € 1.4 € 1.0 Other Avg. order €12 x 12% commission Marketing Income Expenses - € 3.0 € 2.8 Other unit costs (1) € 1.8 New markets Avg. order €20 x 15% commission Marketing 50% profit Avg. order €20 x 30% commission € 5.0 € 1.5 Delivery costs (€10/hour, 2 rides per hour) € 4.0 € 1.0 € 0.5 Income . Expenses Income Market leadership . Source: Dealroom estimates, company reports. 1. Other unit costs Based on Just Eat reporting, via Equity Research 2. Based on public reporting by Delivery Hero, Just Eat and Takeawaycom 3. Based on public reporting by Delivery Hero (Foodora), equity research and Dealroom estimates 11 Expenses New markets Income . Expenses Market leadership Delivery costs (€10/hour, 2.5 rides per hour) Source: http://www.doksinet New entrants have

so far expanded market adding new (premium) segments, rather than challenging HQ Copenhagen London San Francisco Moscow Zurich Helsinki Athens Software + feel & logistics Software + feel & logistics Software + portal Software + portal Software + logistics Full service Recycle Funding (€M) € 430M N/A € 10.9M N/A € 12.4M € 800K N/A Launch year 2012 2014 2011 2008 2014 2014 2015 7.5M (+90%) 3M (+106%) 2.4M (+85%) 0.6 M 55 K 0.11M 63K 2.2M (+1,000% growth) 1.3M 5.7 M (+60% growth) N/A 0.27 M N/A 1M 2,134 employees Annual Revenues: £ 130M Valuation £ 761M N/A 52 employees N/A 85 employees 22 employees 62 employees Europe: Amsterdam, Bordeaux, Brussels, London, Lyon, Madrid, Manchester, Milan, Moscow, Paris, Stockholm, Vienna, Warsaw (4) Russia Switzerland Estonia, Sweden, Finland Greece Europe: UK, Denmark, Norway, Germany, France, Switzerland, Austria (5) Model Monthly web users (1) Cumulative app installs (1)

Other KPIs Countries Traction Europe: Belgium, France, Germany, Italy, Ireland, Netherlands, UK, Spain (3) #2 in UK, Netherlands, France after Just Eat Source: Dealroom estimates, press releases, SimilarWeb, Priori Data. 1. In Europe 2. ROW: Australia, Hong Kong, Singapore, UAE 1.3M app installs from zero installs 12 months ago. 1 M app installs from zero installs 12 months ago. Partnership with Just Eat (2011) #1 in Russia #1 in Finland Biggest growth in France and UK #1 in Switzerland #2 in Greece after Delivery Hero Expansion to 7 countries in 2 years. #2 in Denmark after Just Eat 3. ROW: United states, Canada, Colombia (Bogotá), Brazil (São Paulo), Australia, Thailand, UAE, Hong Kong, Singapore, Taiwan, Japan (Tokyo), South Africa 12 4. RWO: USA Source: http://www.doksinet Value is created in leadership markets, where the earnings are generated Scale Countries + Restaurants Gross merchandise value (GMV) % average take-rate Net revenues (2017E) 15 11 40 1

6 62K 29K 150K 35K 1K € 3.4B € 1.2B € 3.8B € 3.6B € 0.5B 16% 12% 13% 16% 100% € 545M € 147M € 495M € 579M € 490M Sw eden, Finland USA UK 29% 25% Market position Market leadership in Netherlands 50% (UK) 60% profitable EBITDA margin in new markets <0% <0% <0% Group EBITDA margin (2017E) 38% <0% 23% 30% 30% 18% 10% Enterprise value € 4.4B € 1.2B c. €32 billion € 2.4B € 2.2B EV / Net sales (2017E) 8.1x 8.4x 7.5x 4.9x 4.4x EV / EBITDA (2017E) 21.3x - – 16.9x 17.6x Market leader EBITDA margin + UK, Denmark, Italy profitable ex Foodora Growth = % revenue growth (16-18E) Valuation Source: annual reports, equity research, Bloomberg. 13 Source: http://www.doksinet Contents 1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Source: http://www.doksinet Market leadership is key for profitability. Result:

consolidation and disposal of loss-making markets HQ London Berlin Berlin W. Europe: Sindelantalcom, Fillmybelly, Meal2go, Clickeat.it, Urbanbite, AlloResto, Orogo, Clicca e Mangia, DeliveRex, Hellofood IT, Takeaway UK, Hungryhouse UK, La Nevera Roja, PizzaBo IT, Eatcity.ie W. Europe: HungryHouse UK, EatNow UK Amsterdam Selected brands Acquisitions LatAm: ifood (JV), Sindelantal.mx, Hellofood MX & BR, Foodpanda MX & BR Canada & USA: Grubcanada, Yummyweb, Orderit.ca, Skipthedishes. Australia & New Zeland: MenuLog W. Europe: Just Eat BE & NL (to Takeaway) Disposals E. Europe: Online Pizza (Sweden, Minority stake) LatAm: Hellofood Brazil (to ifood) E. Europe: Foodarenach, Efoodgr, Damejidlo, Jidloted, OnlinePizza Norden (OnlinePizza, Mat24, PizzaOnline, PizzaPortal, Mjam, WillEssen), Lieferheld.de, Pizzade, 9coockies, Foodora Foodpanda. E. Europe: Delivery Club, Pauzahr, Donesicom, Netpincer.hu LatAm: PedidosYa, SeMeAntoja, Superantojo, Entrega Delivery,

Peixe Urbano, DeliYami, Janamesa. Middle East: 24h.ae, Hungerstation, EatOye LatAm: Hellofood LatAm, Click delivery, Subdelivery, PedidosYa. India: Tastykhana, Just Eat India. Middle East: Talabat.com, Yameksepeti Asia: Singapore-Dine, Food Runner, Koziness, Delivery.com HK W. Europe: Thuisbezorgdnl, Pizzafr, Pizzabe, Rsto-in BE, TanteBep.nl, Pizzapt, Just Eat BE & NL, foodexpress E. Europe: Lieferando, Lieferservicech, Pysznepl, Lieferservice.de, Resto-in DE Asia: Vietnammm. Asia: Baedaltong. E. Europe: Hungryhouse UK (to Just Eat) LatAm: Tastykhana, PedidosYa MX, SeMeAntoja, Superantojo (to Foodpanda) China: Waimai Chaoren (Chinnese subsidiary) India: Just Eat India (to Foodpanda) E. Europe: Delivery Club (to Mailru) India: Foodpanda Indonesia closes down LatAm: Hello Food MX & BR (to Just Eat) Hellofood Argentina, Chile, Colombia, Ecuador and Peru (to Delivery Hero) Asia: Foodpanda Vietnam (to Vietnammm) 15 W.Europe: Takeawaycom UK (to Just Eat) Source:

http://www.doksinet Consolidation wave started in 2014 and still ongoing. France and Italy could be next HelloFresh €0.6B Quandoo €210M Just Eat La Nevera Roja €80M Delivery Hero Bookatable €108M iens.nl €10M Yemeksepeti €0.5B Kochzauber Foodinho SinDelantal €4M e-food.gr €12M Spotistic La Nevera Roja DameJidlo Volo.de Uncover ES Food Foodist €4M Mat.se €3M Just Eat €1.8B IPO Jidloted Clicca e Mangia Vinguiden Gourmondo Takeaway.co m UK LEpicier Toqué LaFourchette €127M restOpolis Deliverex Linas Matk. €30M Wine & Cocktail Gd. Table-booker Quick Resto Restaurantes.com Lieferando €50M MyTable Volo Foodora Resto-in Pizzabo WirWinzer Resto-In BE & DE Rocket €6.7B Cookening BestTables Todovino.com KochAbo Food Express RetNemt Vinocasting RestaurantKritik.de Pizzabo Delinero Restaurantes .com Todovino MySwissChocolate iqPOSitive Gold&Green Foods Foodpanda Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Takeaway €1.0B IPO Hungryhouse €240M Takeaway.com Delivery Club Yemeksepeti €40M Q1 Q2 Q3 2012 Q4 Hungryhouse Foodist 5CUPS and some sugar Clickdelivery. gr €3M Q1 Q2 Q3 Q4 2013 1. Assumption of majority stake by Rocket Internet Pizza.de €300M Lieferservice ClickDelivery Q1 Q2 Q3 2014 16 2015 Just Eat BE/NL Delivery Club €23M €91M 2016 Source: http://www.doksinet Europe post consolidation: France and Italy remain as crowded markets Uber EATS Amsterdam, Bordeaux, Brussels, London, Lyon, Madrid, Manchester, Milan, Moscow, Paris, Stockholm, Vienna, Warsaw Dominantly #1 in UK, Italy, Spain, Portugal, Denmark Also #1 France #1 in Germany (not dominant), Sweden, Finland #2 in Poland Present across Eastern Europe since FoodPanda acquisition in December 2016 Present across Eastern Europe (and Asia and LatAm) Focus on emerging markets Dominantly #1 in Benelux and Poland Strong #2 in Germany Leader in premium segment Strong #2 in France 17

Source: http://www.doksinet Contents 1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Source: http://www.doksinet UK is by far largest market. Massive growth potential in Europe via online penetration and order frequency People ordering food Germany 56M UK 46M Russia 43M France 33M Italy 30M Spain 23M Poland 19M Netherlands Belgium 10M 6M Austria 6M Sweden 5M Switzerland 4M Total market (offline and online) is growing about 5% per year. (1) Market size (GMV) UK UK € 7.2B Germany € 4.5B France Netherlands Italy € 2.5B € 1.5B Poland € 1.2B Russia € 1.1B Austria € 0.8B Belgium € 0.8B Sweden € 0.8B 32.7% 27.4% Poland € 3.0B Online 23.4% UK Germany € 0.8B France € 0.6B Netherlands € 0.5B Belgium 19.1% Spain Austria 19.0% Italy € 0.2B € 0.4B 17.3% Russia € 0.2B Switzerland 17.0% Belgium € 0.2B Sweden 16.2%

Austria € 0.2B Germany 15.2% Denmark € 0.2B Russia 13.5% Sweden € 0.1B 13.4% Poland € 0.1B Switzerland € 0.6B France Denmark 3M Denmark € 0.5B Spain 11.9% Switzerland € 0.1B Finland 3M Norway € 0.4B Norway 10.8% Finland € 0.1B Norway 3M Finland € 0.4B Italy Norway € 0.0B Estimates based 1. GMV = Gross Market Value 2. Dealroom estimate based on Morgan Stanley UK survey report 19 5.3% (1) € 3.5B Finland Offline Vast majority of offline (80%+) (2) is take-out collection Online market (GMV) 49.1% Denmark € 4.3B Spain Netherlands Online penetration UK is by far the largest market, thanks to high order frequency and online penetration. Source: http://www.doksinet Just Eat leads UK, Spain, Italy, Denmark. Takeaway leads Benelux and Poland Just Eat Delivery Hero Takeaway.com Deliveroo UK Other Domino’s, Pizza Hut, others Germany € 3,538M € 784M France Gross market value (GMV) € 578M

Netherlands € 491M Spain € 357M Italy € 182M Russia € 174M Germany € 784M France € 578M Netherlands € 491M Spain € 357M Italy Russia € 174M Delivery Club € 153M Sweden Austria € 152M Belgium € 153M Denmark Austria € 150M € 152M Denmark € 150M Sweden € 130M Poland Poland € 120M Switzerland Finland Switzerland € 102M Finland € 100M Norway € 0M Takeaway.com has built a €1 billion+ business out of #1 Netherlands position. € 182M Belgium Norway Uber EATS € 160M € 120M Eat.ch € 102M WOLT € 70M € 43M € 100M € 43M 20 € 200M € 300M € 400M € 500M € 600M € 700M € 800M Source: http://www.doksinet Takeaway and Delivery going head to head in Germany. Just Eat maintaining growth in UK United Kingdom 2016 web visitors (SimilarWeb) Germany 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 6M 18 M Just

Eat 5M 15 M Delivery Hero Delivery Hero 4M 12 M Just Eat 6M Deliveroo 0M Sept Oct Nov Dec Takeaway 2M Deliveroo (1.1 M) Uber Eats (0.4 M) 3M Aug Takeaway 3M 9M Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Deliveroo (0.1 M) 1M Deliveroo (0.3 M) Aug Sept Oct Nov Dec Jan Netherlands 2016 web visitors (SimilarWeb) Uber Eats (0.02 M) 0M Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Switzerland 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 6M 1.2 M 5M 1.0 M 4M 2016 app downloads (source: Priori Data) 0.8 M Takeaway 3M Eat.ch 0.6 M Takeaway 2M 0.4 M 1M Deliveroo (0.2 M) Deliveroo (0.08 M) Takeaway (0.06 M) Delivery Hero (0.06 M) 0.2 M Takeaway (0.05 M) Delivery Hero (0.05 M) 0M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 0.0 M Dec Aug 21 Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source:

http://www.doksinet France is crowded market, consolidation likely. In Italy, Just Eat is doing very well France 2016 web visitors (SimilarWeb) Spain 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 3.0 M 2016 app downloads (source: Priori Data) 3.0 M 2.5 M Just Eat 2.5 M Deliveroo 2.0 M Just Eat 2.0 M 1.5 M Telepizza 1.5 M 1.0 M Just Eat (0.9 M) 0.0 M Deliveroo (0.5 M) 0.5 M Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Just Eat (1 M) Deliveroo (0.2 M) Takeaway (0.1 M) Aug Telepizza (0.9 M) 1.0 M Takeaway (0.6 M) Deliveroo (05 M) Uber Eats (0.4 M) Delivery Hero (0.2 M) Delivery Hero (0.4 M) 0.5 M 0.0 M Dec Aug Sept Oct Nov Dec Jan Jan Italy 2016 web visitors (SimilarWeb) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov Dec Greece 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 3.0 M Delivery Hero 2.5 M 2.0 M 1.5

M 1.0 M 0.5 M Forky (0.1 M) 0.0 M Aug 22 Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Source: http://www.doksinet Takeaway is outperforming in Poland. Mobile penetration in Russia is growing fast Russia 2016 web visitors (SimilarWeb) Poland 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) Delivery Club 6M 2016 app downloads (source: Priori Data) 6M 5M 5M 4M 4M 3M Takeaway 3M Delivery Club 2M 2M Delivery- Hero (1 M) 1M Takeaway (0.70 M) 1M 0M 0M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug Sept Oct Nov Dec Jan Jan Czech Republic 2016 web visitors (SimilarWeb) Mar Apr May Jun Jul Aug Sep Delivery- Hero (0.32) Oct Nov Dec Turkey 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 6M 18 M 5M 17 M 4M 16 M 3M 15 M 2M Feb 2016 app downloads (source: Priori Data) Delivery- Hero 14 M Delivery Hero 1M 13 M 0M 12

M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aug 23 Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: http://www.doksinet Nordics so far less crowded. Growth in relatively calm markets. Wolt is a strong local player Norway 2016 web visitors (SimilarWeb) Sweden 2016 app downloads (source: Priori Data) 2016web visitors (SimilarWeb) 2016 app downloads (source: Priori Data) 2.4 M 0.18 M 2.0 M 0.15 M 1.6 M 0.12 M Just Eat Just Eat Delivery Hero 0.09 M 1.2 M Delivery Hero 0.8 M Delivery Hero 0.06 M Delivery Hero 0.4 M 0.03 M Uber Eats 0.0 M 0.00 M Aug Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Aug Sept Oct Nov Dec Jan Finland 2016 web visitors (SimilarWeb) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Denmark 2016 app downloads (source: Priori Data) 2016 web visitors (SimilarWeb) 2016 app downloads (source: Priori

Data) 1.2 M 1.0 M 0.8 M Just Eat 0.6 M Just Eat 0.4 M Hungry.DK 0.2 M 0.0 M Aug 24 Sept Oct Nov Dec Jan Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: http://www.doksinet Contents 1. Introduction 2. Food tech economics 3. Consolidation wave 4. Market size and market share 5. Investment and exits Source: http://www.doksinet Mega-rounds have slowed down due to focus on profitability. But number of rounds is still increasing Annual food tech funding € 1,391M Quarterly food tech funding € 834M 49 € 814M 163 Amount raised (€M) € 1,222M Delivery Hero € 496M Rocket Internet € 405M Top 3 rounds (€M) 40 Rocket Internet €405M Total number of rounds € 1,048M Delivery Hero €496M 38 36 35 109 104 HelloFresh € 130M Delivery Hero € 318M Food Panda € 104M 66 Takeaway € 94M 41 30 Jumia € 300M Deliveroo € 250M 20 16 HelloFresh € 85M € 242M Delivery Hero € 46M € 144M Just Eat € 42M Delivery

Hero € 25M Delivery Hero € 27M € 46M 2015 2016 Q1 Delivery Hero €318M € 50M Q3 Delivery Hero €100M Takeaway €94M Q4 € 3M Q1 Delivery € 80M Delivery Hero Hero Foodpanda €77M €80M €55M € 36MDelivery Hero€ 24M HelloFresh €27M €46M Q2 2012 Q3 2013 26 Q4 Q1 Q2 Q3 2014 €300M € 174M HelloFresh €77M Foodpanda €104M Foodpanda €91M Deliveroo € 171M € 146M € 130M Deliveroo €91M Jumia €75M €64M € 20M Q4 Deliveroo €250M Jumia € 256M HelloFresh €130M € 123M 6 Q2 18 € 244M 11 Just Eat €46M € 396M € 351M 9 Delivery Hero € 12M €46M 2014 25 20 Deliveroo €91M 15 € 135M 2013 26 24 10 2012 28 27 Q1 Q2 Q3 2015 Q4 Q1 HelloFresh €85M Jumia €50M Q2 Q3 2016 Q4 Source: http://www.doksinet A large number of VCs are still heavily invested in the Food Tech space Investors Selected top funded tech companies Delivery Hero €2-4 billion valuation € 1,236M

Fabrice Grinda, Oleg Tscheltzoff Deliveroo € 431M Valued over $1 billion Neil Rimer HelloFresh € 353M Majority owned by Rocket. Focus now on profitability Thomas Griesel Foodpanda € 293M Kiren Tanna, Benjamin Bauer, Ralf Wenzel, Masoud Kamali, Ralf Wenzel, Masoud Kamali Velocity € 35M Vivino € 33M Gousto € 31M Shukri Shammas, Tom Glocer, DIG Investments, Alex Madonald Henrik Rosendahl, Janus Friis, Suranga Chandratillake Mark Evans 27 Folded into Delivery Hero at €500M valuation Source: http://www.doksinet Selected top VC-backed exits in FoodTech so far Company Transaction Just Eat £ 1.5B Takeaway € 1.B Yemeksepeti LaFourchette Quandoo La nevera roja Bookatable Delivery Club IPO IPO $ 589M acquisition by Delivery Hero $ 140M acquisition by TripAdvisor € 210M acquisition by Recruit Holdings € 80M acquisition by just eat € 108M acquisition by Michelin $ 100M acquisition by mail.ru group Investors Source: http://www.doksinet

More online resources Food Companies Food Exits Food Funding Rounds Food Map 29 Source: http://www.doksinet Join now via dealroom.co/register and get a 30-day free Premium upgrade (no credit card needed)