Food Order Sites Give Up On International Competition

It looks increasingly difficult to turn a profit in the industry

The online food order companies Just Eat and Takeway.com have each signed a deal that swaps their local websites in the UK and the Netherlands.Due to Dutch company Takeaway.com struggling to get a grip on the market in the UK, along with Just Eat having similar problems in the Netherlands, visitors to those local sites are now redirected to the other company’s website in the corresponding country.A spokesperson from Takeaway.com said that, in the UK, it did not “generate the growth we desired”, however, this comes almost immediately after it acquired Just Eat’s Dutch and Belgian sites.Meanwhile, in the South East Asian market, Foodpanda is getting rid of its branch in Indonesia after poor sales, and has reportedly tried to get rid of its Indian business earlier this year.Food delivery companies worldwide reconsidering regional presences is likely due to dominating local players, like Just Eat in the UK.The company’s CEO, David Buttress, is quoted as saying that he has “never seen the number two player in a country break even, let alone turn a profit. It has never happened in this industry.”

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