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Meal delivery: how the Covid-19 crisis boosted the sector

2021-02-23T05:28:27.529Z


Health restrictions have boosted the market dominated by Uber Eats, Deliveroo and Just Eat Takeaway. But France remains far behind on


The food delivery industry is a shock of the titans.

Three international giants are competing in France: the American Uber Eats, the British Deliveroo and the Anglo-Dutch Just Eat Takeaway.

With 12.5 million downloads of its application and 28,000 referenced restaurants, the leader in France is Uber Eats.

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"We are present in more than 230 French cities and cover 54% of the population," argues the American platform, which boasts 40,000 independent delivery people.

Arrived in France in 2015, Deliveroo has 20,000 affiliated restaurants and 14,000 delivery people.

But sometimes delivery people work for multiple platforms at the same time.

Just Eat is recruiting on permanent contracts

With 15,000 restaurants listed, Just Eat (which bought the French Allo Resto in 2012, before being itself bought by the Dutch group Takeaway in 2019) is based on a hybrid model, different from its two competitors.

Within a single interface, it combines restaurateurs who provide their own delivery, an outsourced delivery service entrusted to Stuart (La Poste group) and, since January 2021, its own delivery service.

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"We have launched the recruitment of 400 delivery people on permanent contracts in Paris, we are starting in Lyon and will continue hiring in 30 cities in France, reaching a total of 4,500 permanent contracts by the end of 2021", explains the communication from Just Eat.

Long-lasting contracts that contrast with the often criticized social practices of the sector which have given rise to numerous legal actions.

On the commission side, the three platforms charge the same rates: around 30% charged for each order delivered.

It is 14% or 15% in the case of take-out.

But during this time that restaurants are closed, Uber Eats and Deliveroo are not charging them.

+ 100% orders

If the sales volumes are jealously kept secret, all the players confide that the second part of 2020 was particularly favorable to them.

Uber Eats thus claims to have recorded + 100% of orders between the second half of 2019 and the second half of 2020 and + 130% in August.

“From 20-22 euros in early 2020, the average order rose to 25-28 euros during the first confinement and is between 22 and 25 euros today,” he notes.

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Same influx on the side of restaurateurs and delivery people.

In 2020, Uber Eats and Deliveroo each saw 8,000 new establishments join them.

At the same time, delivery people have grown from 30,000 to 40,000 at Uber Eats.

Thanks to the confinement and then to the curfew, the platforms welcomed new customers: “Families and more customers at lunch.

We believe that the Covid has made the market take two to three years to mature, ”says Damien Stéffan.

France late

However, France remains well behind the other countries.

“The delivery weighs only two billion euros on a market of 100 billion euros, or 2%, specifies Bernard Boutboul, president of the Gira cabinet, specializing in catering.

And 90% of these two billion euros are concentrated in just four cities: Paris, Lyon, Lille and Marseille.

The French prefer take-out (32 billion euros).

Home delivery concerns a very urban, young and affluent population.

She hasn't taken off yet.

"

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For the specialist, the explosion will not take place "before five or seven years, when Generation Z, born in the 2000s, will want to be delivered whatever it wants, when it wants, where it wants".

While Foodora and Take it Easy have disappeared, Uber Eats and Deliveroo are expanding their activities and starting to deliver groceries, like Glovo, their Spanish competitor.

But Bernard Boutboul is convinced of it, it is another giant who will win the match: Amazon, which bet 500 billion dollars (410 million euros) on Deliveroo international, owns Whole Food and has signed, in France, agreements with Monoprix.

“Amazon is in ambush, it is waiting for the market to be ripe, observes the president of Gira, and I am afraid that the best logistician in the world will make short work of the others.

"

Source: leparis

All business articles on 2021-02-23

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