Commerce | E-commerce » Is Uber Eats Delivery Charge Cut and New Marketplace Just a Case of Playing Catch up with Just Eat

UK: +44 (0)207 989 0813 NA: +1 646 896 3065 AU +61 2 9280 0700 action@proactiveinvestors.comau Just Eat PLC 23:46 21 Feb 2019 Is Uber Eats delivery charge cut and new marketplace just a case of playing catch up with Just Eat? 776.8 Price: £5.31 billion Market Cap: 1 Year Share Price Graph News on Thursday that the food delivery arm of transport behemoth Uber, Uber Eats, will cut its delivery charge and open a marketplace to allow restaurants to make their own deliveries, has struck many as being a case of playing catch-up with its rival, Just Eat PLC (LON:JE.) The companys plans to cap its fees charged to restaurants at 30% of the value of an order from 35% previously, will seek to edge out competition from both Just Eat and other rival Deliveroo, but more importantly the revelation of its marketplace plan has placed it directly on a collision course with the former. READ: Market is undervaluing Just Eats overseas businesses, argues UBS The news certainly put the wind up Just

Eats investors, with shares falling 6.6% to 6856p in lunchtime trading, but Uber Eats challenge could be different from how it appears. Is it too late? In a note to clients, analysts at broker Liberum saw the moves as "too little, too late", given that Just Eat had "already established a lock on much of the UK restaurant market", with nearly two-thirds of its business coming from outside the countrys 11 biggest towns. The broker continued that for restaurants switching to Uber Eats from Just Eat would be "too great" a risk in terms of losing customer orders, while learning a new operating system and concerns over counter space would likely prevent smaller eateries from adopting both. Given that Just Eat has been pouring investment into its own efforts to create a network of delivery drivers, the competitive edge this brought to Uber Eats and Deliveroo is diminishing rapidly. Share Information Code: Listing: 52 week Sector: JE. LSE High 833.137 Low

524.8 Online business & ecommerce Website: www.just-eatcom Company Synopsis: Just Eat plc operates a leading global marketplace for takeaway food delivery. Headquartered in London, we use proprietary technology to offer a quick and efficient digital ordering service for 21. 5 million customers and 82,300 restaurant partners. Just Eat is a member of the FTSE 100 Index. action@proactiveinvestors.comau Or is there another motive? While playing catch-up to the more successful competitor may seem like the obvious reason for Uber Eats shift in strategy as it tries to maintain market share, Just Eats success could have put it in the acquisition crosshairs. "What Uber Eats move does suggest is that they recognise their model is not working and that they are not gaining share," said Liberums analysts, adding that the "more likely outcome" at this point was for Uber Eats to acquire Just Eat instead. Given that Morgan Stanley has previously valued the Uber

conglomerate at a whopping US$120bn (£91.8bn), dwarfing Just Eats own current market cap of around £5bn, it would likely have more than enough firepower to take it out and integrate its operations. Liberums analysts said that an added benefit of a Just Eat acquisition would be to make Uber Eats the top player in www.proactiveinvestorscouk www.proactiveinvestorscom www.proactiveinvestorscomau ca.proactiveinvestorscom www.proactiveinvestorsde United Kingdom North America Australia Canada Germany www.proactiveinvestorscomau Suite 102, 55 Mountain Street Ultimo, NSW 2007 ABN: 19 132 787 654 Canada, a "key strategic target" for the group. Recent pressures may make Uber swoop more likely The potential for a takeover by Uber may have increased recently after US hedge fund Cat Rock Capital Management, which owns a 1.7% stake in Just Eat, called on the company to explore a merger with a "well-run industry peer" rather than look for a new chief executive

after boss Peter Plumb stepped aside in January. READ: Just Eat in demand as major shareholder calls for merger talks This, coupled with Just Eats slip from the FTSE 100 index in December after just one year in the blue-chips, have placed in a somewhat weak public relations position. Liberums analysts said that Uber Eats would "probably wait 12-18 months" for its new initiatives to take effect, but the recent issues around Just Eat "may make now a good time to make a move". They added that an acquisition would make "strategic sense" for Uber Eats, given that Just Eat has nearly four times the share of the UK food delivery market as both itself and Deliveroo combined, with the gap "likely to have widened" since their figure was calculated in 2017. Proactive Investors facilitate the largest global investor network across 4 continents in 4 languages. With a team of analysts journalists & professional investors Proactive produce independent

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