Strategic Management (G1H02E) Final Exam

Guillaume CARTON, Jaekyung HA, Thinley THARCHEN

December 4, 2021

General instructions

Please note the exam consists of two parts. The first part of the exam consists of 2 short
open-ended questions. The second part of the exam is based on a case. Please be careful to
follow directions for each part.

Please keep your responses to the point. We care for the quality of your answer, not for the
quantity. Making unnecessary points will not enhance the evaluation but will only decrease
the coherency of your answer.

You are not allowed to consult resources (materials) or communicate with others during the
exam. Academic dishonesty is considered a serious offense and will not be tolerated. In
cases where there is a strong suspicion of academic integrity violation, action will be taken
which may lead to you failing the course.

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Part A. < SHORT ANSWER QUESTIONS—6 points >

Answer the following questions identifying the Professor who taught your class.
Please keep the answers to the point and use the frameworks that you have learned in the
class. The answer to each question should not exceed 300 words. We care for the quality of
your answer, not for the quantity. Making unnecessary points will not enhance the
evaluation but will only decrease the coherency of your answer.
Professor Guillaume CARTON
1. (3 points) What are the differences between the concepts of "critical success factors"
and of "competitive advantage" and how do they complement each other? Illustrate
your explanations with the strategies followed by one or two organizations of your
choice.

2. (3 points) Using concepts from the class, describe the strategy followed by Apple. Do
you think that its strategy is sustainable over the long run? The evaluation will not be
based on your knowledge of Apple, but on how you describe its strategy.

Professors Jae HA & Thinley THARCHEN

1. (3 points) How can organizational capability be a source of competitive advantage?

Explain with a specific example (either from the class, from the textbook or from your
personal knowledge of a firm).

2. (3 points) What is Blue Ocean Strategy and how can firms implement it? That is, what
are the conditions that enable firms to enjoy the competitive advantage out of Blue
Ocean Strategy rather than being Stuck-in-the-Middle? Use an example(s) to support
your argument.

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Part B. <CASE STUDY: Strategic Memo for Delivery Hero – 14 points>

Imagine you are working as a consultant for EMLYON Consulting. Your manager sends you
the following email:
Hi!
Our client Delivery Hero wants a strategic memo to understand its competitive positioning
along with some strategic recommendations.
Can you write a draft? The client wants to know about the industry’s profitability potential,
the firm’s unique sources of competitive advantage (or lack thereof), its strategic
positioning, in addition to some recommendations about the most important strategic issues
going forward.
To help you, I looked for some relevant information. Here are newspaper articles from the
search engine Factiva obtained by conducting a search for “Delivery Hero” in the Financial
Times during the last couple of years. In addition, there are also articles on “Food Panda”
(Delivery Hero’s Asia Pacific subsidiary) from various newspapers in that region.
There also an excerpt from the company’s annual report, and details of the competitive
landscape of the industry taken from an analyst report. You will find all these documents
attached.
Can you make a strategy analysis to tell me what I should tell our client? Please, be relevant!
Thanks a lot!
John

Based on abovementioned request and materials, write a strategic memo on the global food
delivery industry for your client (i.e., assume the industry boundary to be the global
marketplace). Make sure to be analytical and to deploy necessary strategic frameworks that
you learned in the class. Be sure to address the following in your responses:
1. Industry profitability potential (4 points)
2. The firm’s unique source of competitive advantage (or lack thereof) (4 points)
3. It’s strategic positioning in Porter’s generic strategy terms (2 points)
4. Strategic recommendations for competitive advantage based on your overall
analysis (4 points)
If you need to make use of some information that is not found in the given documents, you
can make assumptions which you need to explicitly state.

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 I. Search of articles mentioning “Delivery Hero”

On a roll German rival buys shares in Deliveroo

10 août 2021

Delivery Hero, the Berlin-based food delivery group, has built a 5 per cent stake in Deliveroo, driving shares in
its UK-based rival to their highest point since March's initial public offering.

The move comes at a time of consolidation in the online food delivery industry, as companies jostle for position
in new sectors such as groceries and look to capitalise on the growth boost provided by lockdowns.

Shares in Deliveroo rose as much as 10 per cent to 360p yesterday morning, their highest since falling more
than 26 per cent on their first day of trading in March. They closed up 4.2 per cent.

Niklas Östberg, Delivery Hero's chief executive, said the company began building its stake in April after
considering "all possible scenarios". He said he had "huge respect" for Deliveroo founder Will Shu and his team
and the company's stock "felt undervalued to us", having been "oversold" since its IPO.

Delivery Hero owns minority stakes in several other food delivery groups around the world, including Europe's
largest player, Just Eat Takeaway.com, Spain-based Glovo and Latin America's Rappi.

Delivery Hero competes against Deliveroo in the Middle East through its Talabat brand, and in Hong Kong and
Singapore via its Foodpanda unit. But the two companies do not overlap in Deliveroo's largest market, after
Delivery Hero sold its UK operation, Hungryhouse, to Just Eat for about £200m in 2016.

Both companies are set to update investors on current trading this week.

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Delivery Hero to return to Germany as food delivery fight intensifies

12 mai 2021

Delivery Hero is relaunching in Germany, two years after selling its operations in its home country, in what is
rapidly shifting from a food-delivery monopoly to one of Europe’s most competitive markets.

The Berlin-based company’s launch of restaurant and grocery delivery services this summer will put further
pressure on what has historically been a lucrative source of profits for Just Eat Takeaway.com. The Amsterdam-
based Just Eat group had, until recently, the market largely to itself after agreeing to buy Delivery Hero’s
German business in late 2018.

“It’s a big market and we still feel like the [food delivery] service is sub-par,” said Niklas Ostberg, Delivery
Hero’s chief executive.

Last month, Uber said it would roll out its Eats delivery service in Germany, after Finland’s Wolt arrived there
earlier this year.

At the same time, Berlin has — alongside London — become a nexus of competition for several fast-growing
start-ups offering rapid grocery delivery. Gorillas and Flink are both based in Berlin while Istanbul-based Getir,
the largest European operator of rapid grocery apps, is planning to begin deliveries in Berlin this summer.

Delivery Hero has already deployed hundreds of its own “Dmarts” — small local warehouses dedicated to
delivering groceries and other convenience items in as little as seven minutes — across the Middle East and
Asia. “We don’t see anyone [else] combining that into one experience,” said Ostberg, by offering instant
grocery delivery and restaurant food from within the same app.

He plans to use Berlin as a test bed, including trialling new restaurant concepts and so-called “cloud kitchens”,
which prepare meals specifically for delivery.

After a “soft launch” in Berlin starting in June, Delivery Hero will begin to roll out across Germany under its
Foodpanda brand from August.

Ostberg said the decision to relaunch in Germany was made only last month, following the expiry of a two-year
non-compete agreement that was part of the €930m deal with Takeaway.com in 2018, and as other
competitors were arriving.

“We don’t see necessarily that we are going to go in and win the market in the next year or so,” said Ostberg.
“This is a 10-year game.” But, he added: “Of course we will definitely make sure we put in enough money to be
the clear number two, the clear challenger [to Just Eat Takeaway.com].”

After news of the launch broke, Jitse Groen, chief executive of Just Eat Takeaway.com, said in a tweet:
“Competition makes us stronger . . . We have defeated them in Holland, the UK, Poland, Ireland and Germany,
and will gladly do so again.”

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Food delivery groups braced for threat from rival apps
5 mai 2021

The chiefs of the world’s largest food delivery groups are watching the frantic fundraising by a new generation
of instant grocery delivery apps with a mixture of envy and alarm, after investors poured $14bn into the
emerging sector.

The heads of both Just Eat Takeaway.com and Delivery Hero warned of cut-throat competition, making it hard
for anyone to make a profit. Their rivals at Uber and Deliveroo, however, are eyeing potential alliances with the
new delivery apps.

The new apps, which include GoPuff, Getir, Gorillas, Weezy and Dija, among many others, are using their war
chests to offer heavy discounts, a tactic used by the more established food apps as they battled for market
share. The new apps also complicate efforts by Delivery Hero, Deliveroo, Uber and others to branch out into
grocery deliveries, potentially a larger opportunity than delivering food from restaurants.

Getir, an Istanbul-based app that raised $300m at a $2.6bn valuation in March, is already in talks with investors
to raise more money at more than double its current value, according to people familiar with the discussions.
Getir would not confirm or deny the news but said it was “in constant dialogue with potential investors” to fuel
its expansion.

Meanwhile, DoorDash, the US-based food delivery group, and Amazon have also been looking at making an
investment or acquisition in the sector in Europe, according to people familiar with the situation. Both
companies declined to comment. Any deal would bring DoorDash into Europe for the first time.

Venture capitalists have taken a particular interest in apps that promise to deliver groceries in as little as 10
minutes, thanks to a network of “dark stores” across urban centres in London, Berlin and beyond.

“It’s received a ton of venture capital dollars in an incredible amount of time,” said Will Shu, Deliveroo’s chief
executive, adding that the apps’ growth was “pretty staggering”.

Niklas Östberg, Delivery Hero’s chief executive, has warned that too much of that capital is being diverted into
coupons and other promotions. That makes it harder for Delivery Hero, which is investing heavily in dark stores
or “Dmarts” of its own, to turn a profit, he said.

“As long as there are hundreds of millions [of dollars] put into this space, I think the economics will be very
tough,” Östberg said. “There will be a lot of money lost along the way. Consumers will be happy but someone
will have to pay for the party.”

Delivery Hero has already opened more than 600 “Dmarts” across the Middle East and Asia, as well as
delivering from 80,000 traditional convenience stores and supermarkets. The service is now delivering 400,000
grocery orders a day and accounts for about 10 per cent of Delivery Hero’s revenues.

But Jitse Groen, chief executive of Just Eat Takeaway, said he struggled to see how the business model of
several apps entering just a few cities “will be viable”.

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Their performance was “probably inflated because of the pandemic”, he said on a recent call with reporters.
“It’s just something we are not willing to sink a lot of capital into.”

Uber’s food delivery chief, Pierre-Dimitri Gore-Coty, said he was “following closely what is happening in the
dark grocery side of things”, after seeing a seven-fold increase in the size of Uber’s grocery business in Europe,
the Middle East and Africa during the past 12 months.

Gore-Coty compared the funding frenzy around 10-minute grocery apps to the earlier spending spree around
electric bike and scooter rental services such as Bird, Lime, Voi and Tier. “It feels a lot like the micro mobility
craziness we had a year or two ago when there was funding everywhere and there were new players literally
every week,” he said. “It doesn’t mean it’s a bad idea,” he added, but it was still “too early” to assess. “M&A is
always going to be an option,” he said.

In the US this week, Uber struck a wide-ranging partnership with GoPuff, the Philadelphia-based convenience-
store delivery service, which will be available through Uber Eats in dozens of cities.

Deliveroo is testing a similar distribution deal with Dija, a dark-store start-up founded by two former executives
at the London-based food delivery service.

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Delivery Hero /InstaShop: meal deal

27 août 2020

German company buying Dubai-based ecommerce site for $360m

Food delivery companies have shown gargantuan appetites for Mergers & Acquisitions (M&A). Think
Takeaway.com, which has rolled up America’s GrubHub and Just Eat of the UK. China’s Meituan Dianping, the
sector giant, has been more adventurous, moving into bike sharing and farm distribution. Now Germany’s
Delivery Hero is buying InstaShop, a Dubai-based ecommerce site, for $360m.

Instashop is an asset-lite store that takes commissions from grocers and other merchants on its app. That,
unusually in the world of food delivery, makes it profitable — although probably not by much. It is also growing
rapidly, with gross merchandise value (GMV) — the total paid by buyers for goods bought over the app — up
330 per cent at an annualised $300m in the second quarter. Assuming a take rate similar to Uber Eats implies
net revenues of $30m.

Delivery Hero is thus buying growth. That makes sense. Online delivery is a game of scale and branching out,
both geographically and into different products such as groceries and flowers. It is how China’s superapps
flourished and the reason why the model is now being aped by the likes of Uber.

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Delivery Hero says orders doubled during pandemic

28 juillet 2020

Food delivery group raises full-year revenue guidance and plans to launch in Japan

Delivery Hero, the online food delivery group, has raised its full-year revenue guidance by about €200m, or
roughly 8 per cent, after saying order volumes had almost doubled during the pandemic.

The Berlin-based internet group behind the Foodora, Foodpanda and Talabat apps said that it now expected
2020 revenues to hit €2.6bn-€2.8bn, compared with €2.4bn-€2.6bn previously, as it announced plans to launch
in Japan.

“The second quarter started a bit rough,” said Niklas Ostberg, Delivery Hero’s chief executive. “But we ended
above all our expectations.”

The company is competing with the likes of Just Eat Takeaway, Uber and China-focused Meituan Dianping for
global dominance of the food delivery market

After initially taking a hit in March and April as restaurants were forced to close and consumers stockpiled
groceries, food delivery apps have seen demand for takeaway meals and other items explode in recent months
as lockdowns continued around the world.

Delivery Hero said in a trading update on Tuesday that revenues for the three months to June were up 96 per
cent to €612m. It added 130,000 new restaurants to its services during the quarter, taking its total to 630,000.

Gross merchandise volume — a measure of how much consumers spent in each order — rose 166 per cent in
Asia to €1.3bn, reaching €2.8bn overall.

While Delivery Hero did not improve its full-year earnings outlook alongside the revenue growth, Mr Ostberg
said that it now expected to make additional investments of up to €150m in promotions and to protect its
market share — €50m less than it previously forecast.

“Competition has been slightly lighter than expected,” he said.

In an interview, Mr Ostberg later added that the capital-intensive promotional battle in food delivery had
become “more rational . . . particularly in SoftBank-backed companies but also generally”.

“It’s not ‘growth at any cost’ any more,” he said. But he added that he was becoming more concerned about
long-term competition from larger internet groups such as Google and Amazon. “They want to own everything
when it comes to tech,” he said. “Competition is going to be equally tough or even tougher.”

Orders placed through Delivery Hero’s network of apps and sites across Asia, Europe, the Middle East and Latin
America rose by 95 per cent to 280m for the second quarter, accelerating from 67 per cent in the same period
a year ago. Orders in Asia, its largest segment, almost quadrupled and Europe was up by 47 per cent.

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However, its Middle East and north Africa business — where curfews were particularly strict — saw a 6 per
cent decline, with an estimated 40m orders lost between mid-March and the end of June. Conditions there
were now returning to normality, the company said.

Delivery Hero is also stepping up its push into groceries and other convenience store items, with plans to
operate 400 “Dmart” local warehouses by the end of the year. “Q-commerce” (quick commerce) orders almost
doubled to 10.5m in the second quarter compared with the three months immediately before.

Delivery Hero’s shares have risen 70 per cent since the lows of mid-March. They gained another 2 per cent on
Tuesday, giving the company a market value of more than €19bn.

As it awaits regulatory approval of its $4bn acquisition of South Korea’s Woowa Brothers, which it hopes will
come before the end of the year, Delivery Hero said on Tuesday it planned to invest up to €30m to launch its
Foodpanda brand in Japan by the end of September.

Entry to Japan will leave the US and UK as the two largest food delivery markets outside China where Delivery
Hero has no presence.

Mr Ostberg said it would be “too late to start from scratch” in the UK, where privately held Deliveroo competes
fiercely with Uber Eats and Just Eat. “The only way would be to acquire something,” he said. “The question is
the cost, and the return could probably be better allocated in other places at this point in time.”
He added that spending $7bn would be a “lot of dilution” for shareholders. “I think we can achieve the same
[growth] by investing significantly less into our own product and activities,” he said.
“It would have been nice to be in the US,” he added. “It’s of course a big market but we can’t have it all.”

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Delivery Hero raises €2bn in Europe

17 janvier 2020

Delivery Hero harnessed strong demand to raise more than €2bn on Wednesday, snagging cheap funding for
the acquisition of Woowa Brothers, its South Korean rival.

The financing, which adds to about €550m of cash that Delivery Hero said it held late last year, could provide
Delivery Hero with additional firepower for further deals in the $100bn food delivery market, which is rapidly
consolidating following Just Eat's merger with Takeaway.com and Amazon's planned investment in Deliveroo.

It highlights the continuing allure about €550m of cash that Delivery Hero said it held late last year, could
provide Delivery Hero with additional firepower for further deals in the $100bn food delivery market.

Delivery Hero's acquisition of the company behind South Korea's most popular food delivery app has fuelled
enthusiasm for its shares, which are up about 70 per cent since the start of November to trade around record
highs. The company listed on Frankfurt's stock exchange in 2017 and now has a market value of more than
€13bn.

In a presentation about the acquisition last month, Delivery Hero said Woowa would provide it with a platform
for further expansion in Asia while increasing the profitable portion of its global markets. Still, analysts expect
the group to remain lossmaking this year.

Food apps such as China's Meituan Dianping, Swiggy and Zomato in India, and DoorDash and Uber Eats in the
US have grown rapidly in recent years. Several have taken advantage of huge equity fundraisings led by
SoftBank's Vision Fund and Naspers' dealmaking unit Prosus to accelerate expansion.

However, elusive profitability has spurred consolidation, with Amsterdam-based Takeaway buying Delivery
Hero's German operations last year, before agreeing a merger with Just Eat this month. Uber has been looking
to sell its Indian business, and speculation of tie-ups in North America is growing.

Delivery Hero said Woowa would provide it with a platform for further expansion in Asia

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Delivery Hero expands in Asia with $4bn South Korea deal

14 décembre 2019

Europe's Delivery Hero has expanded its footprint in Asia with a $4bn buyout of a South Korean start-up, in a
move that ratchets up competition in the region's online food delivery market.

The Berlin-headquartered group signed a deal in Seoul yesterday to take over Woowa Brothers, the company
behind South Korea's most popular food delivery app.

"Cut-throat competition against companies with large [amounts of] capital will eventually lead to co-
destruction. So, we decided to partner with Delivery Hero," said Kim Bong Jin, Woowa Brothers' founder. The
South Korean group owns Baedal Minjok, an app more commonly known as Baemin.

Delivery Hero, one of the largest online food delivery groups, will pay $3.48bn for the 87 per cent of the
Seoulbased company that is owned by outside investors. The deal values Woowa Brothers at $4bn.

The remaining 13 per cent stake valued at $520m held by Woowa Brothers' senior management will be
converted into shares of Delivery Hero, a move that makes Mr Kim the largest individual shareholder among
Delivery Hero management.

The investment intensifies the rivalry between the German group and the region's big incumbents, including
Soft-Bank-backed Grab and Indonesia's Go-Jek. It comes as growth in south-east Asia, with 655m people, spurs
rapid uptake of app-based services.

The deal means Mr Kim will manage Delivery Hero's business across Asia, including the 11 countries the
company already has a presence in, as well as Woowa's existing operations in South Korea and Vietnam.

There are more than 10m active Baemin users in South Korea, but Woowa has faced rising competition from
Soft-Bank-backed Coupang.

Food delivery has become a critical pillar for tech players in south-east Asia keen to tap a nascent industry in
the region that can offer higher margins than their other main businesses, such as ride-hailing and digital
payments. According to Euromonitor estimates, Asia Pacific will account for half the $221bn global expenditure
on online food delivery in 2019.

While the takeover marks the latest multibillion-dollar valuation in the online food marketplace, companies in
the sector face an increasingly crowded market. US-based Grubhub has seen its share price plunge amid
challenges from new entrants. Takeaway.com and Just Eat, which have been in talks over a potential £9bn
merger, have both seen their profits take a hit this year.

The Woowa takeover saw a group of international backers exit including China's Hillhouse Capital Group,
USbased Altos Ventures, Goldman Sachs and Sequoia Capital, and GIC, the Singaporean sovereign wealth fund.
The combined group will also establish a $50m fund to support South Korean food technology ventures
expanding into new markets.

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Cho Yong-sun, an analyst at SK Securities, said the takeover would help Delivery Hero grow its presence in Asia,
but he cautioned the deal could still face hurdles from South Korean competition regulators as the new entity's
combined market share in local food deliveries operators will be more than 90 per cent. Additional reporting by
Kang Buseong and Song Jung-a See Lex

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Online food companies: hunger games

3 juin 2019

Home dining traditionally involved a binary choice. "Take it or leave it" was the family cook's offended response
to "why do we always have canned spaghetti on Tuesdays?" That is changing. Delivery apps cater for all tastes
and intolerances, nourishing an investment boom. Will returns rise to perfection? Or flop like a failed soufflé?
The value of the top seven platforms rose 58 per cent last year, according to Bernstein. Last year, "restaurant
tech" attracted more than $8bn, up from barely $75m in 2009, says PitchBook.

The diners with the biggest appetite are two investment giants, SoftBank of Japan and South Africa's Naspers.
The latter is set to list its consumer internet assets in Amsterdam in July. The float will include stakes in food
delivery businesses like Berlin's Delivery Hero, iFood of Brazil and Swiggy of India. The division should grow
fast, becoming profitable in 2021, says Citi.

Softbank's tastes are more eclectic. It has backed driverless delivery start-up Nuro, and ParkJockey.
Controversially, this provides "dark kitchens" sited in car parks. Zume is another cutting-edge punt. Its robots
help make pizzas, cooked in the back of delivery vans.

SoftBank also invests heavily in conventional meal delivery companies, paying $1bn for a stake in South
America's Rappi in April. As well as being the biggest shareholder in Uber, it is a repeat investor in arch-rival
DoorDash. This has replaced UberEats as the second-largest food delivery company in the US. DoorDash's
valuation hit $12bn in May, a near ninefold increase over a year.

Masayoshi Son, founder of SoftBank, is a tech evangelist. In the latest earnings presentation, a herd of
multicoloured unicorns canter up the steeply rising curve of shareholder value "towards further growth". Giddy
valuations make many investors nervous. They think diners will gobble up meals subsidised by investors, with
few leftovers in the form of profits. Even in China, where a huge market is shared by just two companies, a
price war is shredding margins.

This gloomy view underestimates scope for "network effects" the grasp on a market achieved by a platform
with numerous users and suppliers.

It also underplays how deeply social change can reshape dining. The market for online meal delivery could
approach $1tn by 2023, says Bernstein. By then, canned spaghetti on Tuesdays will be no more than a distant
memory.

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Dark kitchens/Amazon: fare comment

17 mai 2019

If meal delivery costs continue to fall, growth in its popularity looks unstoppable

Music once defined the generation gap. Turn down that racket! Now oldsters are wound up by the “can’t cook,
won’t cook” vibe. Millennials are three times more likely to “order in” than their parents. A recipe for
profligacy, obesity and laziness, critics grumble.

It is a palatable trend for investors, though. On Friday, Amazon led a $575m funding round into London-based
food delivery app Deliveroo. This reportedly valued the business at $3bn-4bn, ahead of a possible initial public
offering. Fears that Amazon will eat their lunch hit Deliveroo’s rivals. Shares in UK-listed Just Eat fell 9 per cent.
Those of Germany’s Delivery Hero and the Netherlands’ Takeaway.com were not far behind.

Amazon’s investment is a vote of confidence in Deliveroo’s record of innovation. It pioneered “dark kitchens”,
where restaurants cook food solely for delivery. This could lower the cost of delivered meals by a quarter,
estimates UBS. It might also make it harder for diehard home cooks to complain about the extravagance of
ordering in. A shift to dark kitchens and declining delivery costs would reduce the amount a household can save
by cooking instead of ordering in from an estimated £13 to £8 per hour. That is less than the UK minimum
wage.

That will not change detractors’ minds. Knocking out meals on an industrial estate — sometimes in converted
shipping containers — could weaken local restaurants and has led to some planning disputes. Those are not the
only potential roadblocks for the business. More regulations for gig economy workers could damage the
business model. Many think self-employed couriers get a raw deal. The parallels with Uber are striking.

But if the costs of meal delivery continue to fall, the growth in its popularity looks unstoppable. Believers in
domestic science are right to worry. A century ago, it was common for families to make their own clothes.
Cooking might go the way of sewing over time.

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“Add to myFT”, which appears at the top of this page above the headline.

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Food delivery rivals hit by Amazon’s Deliveroo bet

17 mai 2019
Shares in competitors drop after tech group leads $575m funding round

Shares in rivals to food delivery group Deliveroo fell sharply on Friday after it was revealed that Amazon was
backing the UK-based start-up.

The $940bn US tech group is set to be the largest investor in a $575m fundraising by Deliveroo, sparking fears
among shareholders in competitors that one of the world’s largest companies could pour near-unlimited
resources into the group.

Food delivery stocks were some of the worst performers on Europe’s Stoxx 600 index in the wake of the
announcement.

Shares in Just Eat, the UK’s largest food marketplace, dropped as much as 10 per cent to trade at 605p early on
Friday, while Berlin-based Delivery Hero lost as much as 6 per cent to trade at €40.45. Dutch group Takeaway
fell 6 per cent to €73.50.
Deliveroo, already one of Europe’s best-funded start-ups, plans to use the funds to “invest heavily” in its
technology team at its London headquarters and to build new products. This latest fundraising round takes the
total the group has raised to date to $1.53bn.

Amazon operates its own food service, Amazon Restaurants, which offers one-hour restaurant delivery for
paying customers of its Prime subscription service in some US cities, although it pulled out of the UK at the end
of last year.

The food delivery sector has been marked by intense competition between various players vying for
ascendancy in recent years, putting companies under increasing pressure to stand out from the crowd.
The flotation of ride-hailing app Uber last week will provide funding to its food delivery business Uber Eats,
another key player in the industry.
“While Deliveroo is still in its pre-profit (strategically loss making) phase, as it invests for growth, if any
company knows about the benefit of that strategy it is Amazon,” said James Locker, an analyst at Peel Hunt.

“After Uber’s IPO last week that raised $8.1bn and now Amazon’s investment today — both in aid of the more
expensive delivery side of the takeaway market — these two [groups] will put more pressure on Just Eat which
has only recently started out on that journey,” he said.

Delivery Hero raises guidance as pivot to younger markets pays off

25 avril 2019

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Strong first quarter as food delivery group ramps up focus on high growth countries

Online food delivery group Delivery Hero raised its sales guidance for the year after a bumper first quarter that
saw orders jump as it increases its focus on early stage markets.

The Berlin-headquartered company, one of the largest food delivery groups globally, said on Thursday it had
seen an “impressive step up in order volumes” during the first three months of the year as it ramped up
investment in countries with high growth potential.

The group expects annual revenue of €1.1bn to €1.2bn in 2019, up from €1.08bn to €1.15bn previously. Shares
rose 6 per cent in early Frankfurt trading.

It reported orders had risen 55 per cent during the quarter to €125m, boosting revenues to €267m, a 94 per
cent rise on the previous year.

Delivery Hero said the results were driven by expansion in its early stage markets, after it decided in December
to sell its German business and depart from its home country in order to focus on higher growth markets. In
August it unveiled plans to sell its operations in Australia, France, Italy and the Netherlands as part of its
retrenchment from more mature markets with fierce competition.

Wider adoption of online delivery services and increased investment also helped to drive up revenues, it said.

Niklas Östberg, Delivery Hero chief executive, said: “We had a great first quarter with an impressive step up in
order volumes as we continue to invest across our early stage markets.”

He added: “Today’s result is due to our focus on increasing restaurant selection, providing greater access to our
services, operationally improving our platforms and continued excellent execution by our local teams.”

Thursday’s results follow a strong 2018 performance, which saw the group beat market expectations with
annual revenues of €792m, up 66 per cent on the previous year.

Delivery Hero retained its earlier guidance for 2019 earnings before interest, tax, depreciation and
amortisation of between a loss of €270m and €320m. It said it expected its Europe segment to break even
during the second half of the year, while its Middle East and north Africa segment would bring in ebitda of
€70m.

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Online takeaway group Delivery Hero finishes 2018 on a high

6 février 2019

Food delivery group pushes ahead with expansion as it shifts away from Germany

Delivery Hero, one of the world’s largest online food delivery groups, on Wednesday reported its 2018
revenues had beaten expectations as it pushes ahead with plans to increase its exposure to emerging markets.

The group said full-year sales were €792m, ahead of guidance of €780-785m and 66 per cent ahead of the
previous year on a constant currency basis and including its German operations, which it is selling. Fourth-
quarter sales were up 75 per cent on the same basis at €248m.
Shares in Delivery Hero were trading up 5 per cent in Germany on Wednesday morning.

It said its preliminary margin on adjusted earnings before interest, tax, depreciation and amortisation was
down 18 per cent for the year, in line with the previous guidance.

Niklas Östberg, chief executive, said 2018 had been a “successful year” for the company, adding that 80 per
cent of its gross merchandise value, the total value of orders transmitted to restaurants, comes from countries
in which it holds “leadership positions”.

In December Delivery Hero announced plans to sell its German business to Dutch rival Takeaway.com in a
€930m deal, leaving its home country in order to focus on emerging markets.

On Wednesday it said this allowed it to “allocate more capital towards investment opportunities across its
segments at attractive returns”. It plans to increase investment in 2019, with a net impact on ebitda of €250m.

“We are more confident than ever that our investments will allow us to attract millions of new customers to
our platform. I am very excited about the incredible growth opportunities that lie ahead of us,” said Mr
Östberg.

The group expects revenues between €1.08bn and €1.15bn in 2019, with negative adjusted ebitda of between
€270m and €320m after the additional investment.
It expects its European business to break even during the second half of the year. It had previously
backpedalled on plans to break even by the end of 2018, knocking its share price in September.

Delivery Hero /Takeaway.com: mealpolitik

21 décembre 2018

Combination of German operations will raise trust busters’ eyebrows

18
Germany has been unified — again. This Vereinigung does not involve Prussia extending its sway over Bavaria,
or the West absorbing the East. Instead, Takeaway.com and Delivery Hero are combining their German
operations to create a dominant meal delivery platform owner. Investors are rejoicing. Trust busters should
arch eyebrows.

Why? In both cases, network advantage is the vital ingredient. The more demand and supply an online
platform can aggregate — for pizzas, machine tools or Kendall Jenner selfies — the more unassailable it
becomes. “Winner takes most” describes it.

News that Takeaway.com is buying the German bits of Delivery Hero lifted the shares of the Amsterdam-listed
business 30 per cent. The shares of the vendor, which are quoted in Frankfurt, rose 11 per cent, because the
deal gives it an 18 per cent stake in the purchaser as well as €508m in cash.
The parents are lossmaking. So is Just Eat, whose shares rallied too. The difference is that the UK’s dominant
delivery platform was profitable before competitive threats from Uber Eats and Deliveroo spooked it. The
group is now diluting its capital-light model, investing in the delivery services to supplement those of
restaurants

19
Food delivery remains a competitive market

25 septembre 2018

Your comment that the potential tie-up between Uber and Deliveroo “would create a two horse race” ( “Uber
in early talks to acquire food delivery rival Deliveroo”, September 22), with Just Eat being the other, is
somewhat wide of the mark in the European context in which you place your comment.

In Europe, other big beasts are also active in the restaurant delivery market, notably Delivery Hero and
Takeaway.com. And then there is Domino’s, larger than any of these companies. But wider than this, the
restaurant delivery business is international in scale and is one where a land grab is going on.

Europe represents only a part and excludes other big players, for example technology giants Amazon, Tencent
and Meituan, all of whom have a stake in restaurant delivery. The ultimate winner is far from clear at this stage
of market development.

Just Eat shares fall 7% after reports Uber looking at Deliveroo

21 septembre 2018

Just Eat’s shares were down 7 per cent at the opening on Friday after reports that Uber was in early-stage talks
to acquire the food-delivery app Deliveroo.

Shares in the takeaway app dropped to a low of 647p on Friday morning as investors were spooked by the
news that Uber was considering buying Deliveroo for “several billion” dollars to boost its food delivery service
Uber Eats, a rival to Just Eat.

Shares of other European food-delivery companies also came under pressure: Delivery Hero, the German
takeaway group, saw its shares fall by 1.9 per cent, while Takeaway.com slid 2 per cent on Friday morning.

20
Takeaway app Delivery Hero scraps plans to break even this year

13 septembre 2018

Delivery Hero, one of the world’s largest takeaway food apps, said on Thursday it does not expect to break
even at the end of the year or in 2019 after plotting an €80m investment spree.

The Berlin-based group said its adjusted loss before interest, taxes, depreciation and amortisation was €54.8m
in the six months to June, widening from €40.4m during the same period on 2017.

It said that it does not expect to break even this year or next. It had told investors in May it anticipated it would
break even on a monthly basis “by the end of the fourth quarter 2018.” It said additional investments of up to
€80m, meant to “take advantage of positive business performance and a growing food delivery market,” would
have an “adverse effect” on profits.

Shares dropped 6.3 per cent on the news, leaving Delivery Hero as one of the worst performers on the broad
Europe Stoxx 600 index. They are still up by almost a third this year.

Sales have continued to grow rapidly, with group revenues up 38.1 per cent from the previous half-year to
€340m.

The German takeaway group announced last month that it was divesting its Australian, Italian, Netherlands and
French operations to focus on higher growth markets.

“We are very pleased with the start of the third quarter”, said chief executive Niklas Östberg.

The food delivery market is expanding rapidly, with the recent entry of UberEats and Amazon Restaurant
deliver service. Delivery Hero was the fourth online food delivery portal to float since 2014.

21
Delivery Hero to exit 4 markets in Europe and Asia-Pacific

2 août 2018

Delivery Hero, one of the world’s largest takeaway food apps and owner of the Foodora brand, is exiting four
markets in Europe and the Asia Pacific amid heightened competition in the sector.

The Berlin-headquartered company said on Thursday it was divesting its Australian, Italian, Netherlands and
French operations to focus on higher growth markets. The withdrawal follows Delivery Hero’s flotation in
Frankfurt in June 2017, which raised €1bn.

The Australian arm of Foodora will cease operating on August 20 while Delivery Hero said it is currently in talks
about selling the other three businesses, which would remain operating the service for now.

“We operated an extremely small business in Australia and have decided to close our operations there,” said a
Delivery Hero spokesman.

“The main reasons being we had a distant position with the number one, and we could not provide the
customer an amazing experience given our scale,” he said. “The rationale for the other three markets is
similar.”

The food delivery market is expanding rapidly, with the recent entry of UberEats and Amazon Restaurant
deliver service. Delivery Hero was the fourth online food delivery portal to float since 2014.

22
Ride app Ola buys Indian food delivery service

19 décembre 2017

Foodpanda operations acquired from German group in stock swap

Ola, India’s homegrown ride-hailing app business, has acquired the Indian operations of Delivery Hero’s
Foodpanda, the online food ordering and delivery service, in an all stock deal.

Ola said in a press announcement that it was committed to investing $200m to expand Foodpanda’s India
business to allow it to take advantage of the market’s rapid growth.

In exchange for its India business, Berlin-based Delivery Hero— one of the world’s largest and fastest-growing
takeaway apps — will take an undisclosed shareholding in Ola, which is battling with Uber for dominance of
India’s rapidly growing ride-hailing market.

The acquisition of Foodpanda India’s arm is the culmination of Ola’s longstanding interest in the food delivery
business. The ride-hailing group attempted to run its own experimental food delivery service, OlaCafe, for a
year in 2014.

“At the end of the day, Ola and Foodpanda are fundamentally logistics business,” said a person familiar with
the transaction, who asked not to be identified. “There is a massive amount of synergy at multiple levels.”

But under the terms of the deal unveiled on Tuesday, Foodpanda would retain its existing brand identity.

Ola cab drivers are not expected to get into the food delivery operations. Foodpanda has an existing extensive
network of delivery people, most of whom are on more agile vehicles such as motorbikes, the person said.

India’s online food ordering and delivery market has been growing rapidly, driven by changing lifestyles and a
nascent restaurant boom in expanding cities. But it has also proved a competitive sector, with Foodpanda vying
with local rivals Zomato and Swiggy for consumer loyalty.

Uber has also rolled out its UberEats, which now operates in seven different Indian cities.

The industry has already seen an early wave of consolidation with start-ups such as TinyOwl and Runnr shut
down or swallowed up by larger rivals.

Foodpanda has too had its share of struggles with issues of quality, service and staffing, but operates in 100
Indian cities, and is now considered one of the sectors more efficient players. The delivery company was
originally owned by Rocket, the tech incubator company, and was only sold to Delivery Hero, another Rocket
investment, late last year.

In a statement, Niklas Ostberg, the co-founder and chief executive of Delivery Hero, said the partnership with
Ola was part of the company’s ongoing efforts to “consolidate markets where it strategically makes sense to
collaborate with leading local players”.

23
It said its stake in Ola — which is already backed by Japan’s SoftBank and US-based Tiger Global — would also
be “a valuable asset”.

Delivery Hero, which has operations in more than 40 countries, went public in Frankfurt in June raising €1bn in
one of the largest European technology listings in the last two years.

24
Delivery Hero shares jump on market debut

30 juin 2017

Delivery Hero, the takeaway food app, whet investor appetites in Europe’s stirring initial public offering market
on Friday, with shares rising 2.9 per cent to €26.25 on the company’s debut.

The listing is the largest by a European technology business in almost two years and the fourth by a food
delivery group since 2014. It follows IPOs by US-based GrubHub, the UK’s Just Eat and Takeaway.com, the
market leader in Belgium and the Netherlands.

Delivery Hero, which is based in Berlin, raised almost €1bn from the offering, which was more than 10 times
oversubscribed by investors eager to tap into Europe’s lively equity markets. Companies have raised $11bn in
the past three months after a slow start to the year, according to data from Dealogic.

The company will net €465m from the listing, which it said it would use to pay back loans until it was free of
debt and fund expansion. Existing investors such as Berlin-based Rocket Internet, which has faced concerns
about losses among its holdings, and hedge fund Luxor Capital welcomed the capital increase.

“My view is that some of the business models in technology are overrated, as though they [have] a monopoly
over the internet,” said Alexander Frolov, founder of venture capital firm Target Global, which invested in
Delivery Hero in 2013. “I just think that food delivery, where there are lifetime-long customers, is good.”

Lazy diners have driven demand for food delivery apps across the world, which have increasingly sought capital
from public markets to fund growth amid growing competition from new entrants such as Amazon and Uber.

Like Just Eat and Takeaway.com, Delivery Hero is an online marketplace that links diners with restaurants on its
app, but it also has a delivery service in more than 50 cities with couriers who carry food to people’s doors.

The company, founded in 2011, operates across more than 40 countries and has plans to expand in newer
markets with less competition. In 2015 it bought Yemeksepeti, a popular Turkish food delivery group with
operations across the Middle East and Kuwait-based Talabat.com.

On Wednesday Delivery Hero placed almost 19m new shares and 15m existing shares on the Frankfurt Stock
Exchange at €25.50 — the top end of its previously projected range. It also sold a further 5m shares held by
Rocket Internet, giving it a valuation of €4.39bn. It is still lossmaking, with losses before income taxes of €202m
in 2016.

Niklas Östberg, co-founder and chief executive, said the company wanted to break even or become profitable
from next year. “We’re going to invest and continue to grow and take growth into profitability,” he said.

Delivery Hero’s float comes amid wider optimism about technology stocks and equities in Europe, where there
is a steady pipeline of companies planning to go public. The Stoxx Europe 600 Technology, which tracks
technology stocks, has risen 11 per cent this year, compared with 4.9 per cent for the broader Stoxx Europe
600.

25
Delivery Hero targets nearly €1bn in IPO; Technology

20 juin 2017

The online food takeaway start-up Delivery Hero plans to raise nearly €1bn from its initial public offering later
this month, which would value the company at up to €4.4bn.

Delivery Hero said in a statement yesterday that it would sell up to 39m shares, priced at between €22 and
€25.50 each. It said it would use the proceeds to repay loans and finance the growth and development of its
business.

It is the fourth float by a major online food delivery group in the past three years, following IPOs by GrubHub of
the US, Just Eat, based in the UK, and Takeaway.com, the market leader in Belgium and the Netherlands.

Like Just Eat and Takeaway.com, Delivery Hero operates as an online marketplace matching diners to
restaurants.

It also has its own food delivery service, with couriers distributing meals directly from restaurants in more than
50 cities around the world.

The established companies are now facing competition from newer entrants such as Amazon, with its
subscription grocery service Amazon Fresh and its Amazon Restaurant delivery service, and UberEats.

Founded in 2011 in Berlin, Delivery Hero has more than 6,000 employees and operates across more than 40
countries in Europe, the Middle East and north Africa, Latin America and the Asia-Pacific region. Its brands
include Pizza.de, Foodora and Foodpanda.

The listing will consist of nearly 19m shares from a capital increase. Fifteen million will come from existing
shareholders, including Rocket Internet, the Berlin-based technology investor. A further 5m indirectly held by
Rocket may also be placed with investors in an overallotment, the company said.

At the mid-point of the price range, gross proceeds from the IPO would amount to about €450m. Assuming full
placement of all offered shares at the mid-point, the total size of the offering would amount to about €927m,
the company said. The shares are expected to start trading on the Frankfurt Stock Exchange on June 30.

Rocket Internet: second mover advantage

20 juin 2017
Looking to float a fast-growing but lossmaking technology-related business with an ambitious valuation? A sage
piece of advice: wait for someone else to do it first.

26
Delivery Hero yesterday published a pricing range for its forthcoming initial public offering. The Berlin-based
company plans to sell shares at between €22 and €25.50 per share, giving an offer size of €927m at the mid-
point of the range. Around half the stock is being sold by existing shareholders.

The float should be made easier by those that have gone before: Takeaway.com and JustEat in Europe, and
GrubHub in the US. Their shares have done well. Call it proof of concept. Just Eat has more than doubled since
2014 and Takeaway.com is up by half in little more than six months. Delivery Hero is more exposed to
emerging markets, where it is further from profits. But it has strong positions in some wealthier European
markets too.

Getting the company to market would be a boost for Rocket Internet, the German internet investment group.
But its stake in Delivery Hero is a relatively passive investment, carried in its accounts as an asset held for sale.
It is not a company incubated using Rocket's own business-building model.

More is at stake with HelloFresh, which Rocket controls. It delivers meal kits that customers cook at home. It
called off an IPO in 2015, but is thought to be eyeing a second try. Like Delivery Hero, it will benefit from
someone else going first: also yesterday, Blue Apron revealed the price range for its own $3bn IPO on the NYSE.
Rival Sun Basket may follow soon.

Sourcing, packaging and delivering fresh ingredients is a more complex undertaking than simply providing a
website that brings customers and suppliers together. Blue Apron and HelloFresh are characterised by rapid
revenue growth; first-quarter sales were up by over two-fifths year on year at both groups. But heavy spending
on infrastructure and customer acquisition are needed to achieve such growth. Marketing spend at Blue Apron
was 18 per cent of sales in 2016; at HelloFresh it was 26 per cent.

Still, at the mid-point of its price range, Blue Apron's implied valuation is 3.75 times last year's sales. Even
allowing for a discount, HelloFresh would be worth €2bn.

The US group's float will be keenly watched in Berlin.

27
Start-up grows up: Delivery Hero plans €450m German IPO

7 juin 2017

Delivery Hero, the online food start-up, plans an initial public offering this year, in what would be the first
listing by a Rocket Internet-backed company since the German tech investor listed in 2014, writes Guy Chazan
in Berlin.

Delivery Hero said yesterday that it aimed to raise €450m from newly issued primary shares. It would also issue
stock from existing shareholders, though the size of the secondary issue has yet to be decided. Niklas Östberg ,
chief executive, said the proceeds would be used to pay off financial liabilities and establish a strong net cash
position in order to fund growth.

Launched in 2011, Berlin-based Delivery Hero is valued at about €3.5bn by its largest shareholder, Rocket,
which has a 33 per cent stake. The market listing will be good news for Rocket, whose share price has slid since
its own flotation. Delivery Hero operates as an online marketplace matching diners to restaurants. It also has a
food-delivery service, with couriers distributing meals from restaurants.

Delivery Hero posted a 71 per cent increase in like-for-like revenues to €347m for 2016. But it has yet to make
a profit: last year it made a loss of €116m, compared with a €175m deficit in 2015.

28
Delivery Hero : no need for heroics

23 mai 2017
Investors already have a choice of two fast-growing European food delivery businesses. Delivery Hero would be
a worthwhile addition to the menu, but it does not need to rush to market.

The Berlin-based business certainly has the scale. Big shareholder Rocket Internet values it at €3.2bn. That
compares with Takeaway.com’s market value of €1.4bn and Just Eat’s at £4.1bn (€4.7bn). And the German
group is growing faster. First-quarter results on Tuesday showed revenues rose 68 per cent like-for-like; at its
two rivals they grew less than 50 per cent.

Delivery Hero does not need the cash right now. It just raised more than €387m from Naspers , the South
African technology investor, plus €240m from the sale of its UK unit to Just Eat, assuming that competition
authorities there approve the transaction.

The company is still losing money (it does not disclose profit or loss figures). This is largely because it acquired
Foodora and Food Panda from Rocket, in 2015 and 2016 respectively. Foodora has higher costs, because it
handles deliveries as well as orders. Food Panda is focused on emerging markets, where online ordering is less
established but the growth potential is larger.

Granted, there is a risk that Uber Eats or Amazon muscles in on Delivery Hero’s markets, later diminishing the
attraction of a float. But the existence of two quoted rivals means stock market investors understand the
model. They know that such companies have high operational leverage once they dominate a market. If
Delivery Hero can show that Food Panda is on the path to profit, there will be less chance of its IPO causing any
indigestion.

29
Just Eat/hungryhouse: off the menu

15 décembre 2016

From the diner’s point of view, eating cannot be monopolised. A hungry customer can heat a ready meal, eat
out, order take away or home delivery. Each can be split into myriad niches by cost or style, from a cheap curry
to expensive dim sum. Charge too much and the punter can easily switch.

Yet for home delivery businesses, such as the UK’s Just Eat, market power is the goal. The customer may like
variety but busy restaurants prefer as few IT systems and commercial relationships as possible. Long term, it is
easy to imagine one home-delivery option becoming standard. Hence a rush to consolidate among the once-
bewildering variety that promise to connect customer to restaurant. A few days ago Delivery Hero bought
Foodpanda (both are based in Berlin), and on Thursday sold hungryhouse, a UK operation, to Just Eat. The two
have the same model (marketing and software by the company, the restaurant handling delivery), allowing cost
savings as well as a simpler deal for the restaurants.

Some will worry about the risk of abuse of market power. The UK’s competition authority will look at the deal.
Credit Suisse think it adds 3 per cent to Just Eat’s 32 per cent market share, a daunting lead (hungryhouse were
number two). But the industry is not yet settled on a business model. Deliverance, which operated in London
from its own kitchens, closed this year. Rivals Deliveroo and UberEats aim to provide delivery, which some
restaurants do not. Outlets that prefer not to jostle for attention with rivals can still run their own site.
Customers still have the whip hand; at a push they can even wield the skillet themselves. Consolidation will
continue.

30
UberEats bites into European food delivery market

27 septembre 2016

Uber is aggressively expanding its food delivery service across Europe, the Middle East and Africa, in a move
that takes on local players such as Dutch company Takeaway.com, which goes public later this week.

The San Francisco-based car-hailing company announced that UberEats, its takeaway delivery arm, will launch
in European cities including Amsterdam, Brussels and Stockholm, as well as farther afield in Dubai and
Johannesburg. The company is also advertising for UberEats general manager roles in countries including
Germany, Spain, Italy, Switzerland, Austria and Denmark.

As it expands, Uber will take on European market leaders such as Berlin’s Delivery Hero, Britain’s JustEat and
Takeaway.com, which aims to raise €175m through an initial public offering in Amsterdam.

The regional start-ups have been doubling down by consolidating assets and raising funds to stay ahead of US
companies, such as Amazon and Uber, which are moving into the food business.

JustEat offloaded its Benelux business to Takeaway.com earlier this year for €22.5m, while the reverse
occurred in the UK, when the Dutch start-up sold its assets to JustEat.

These two players just take orders, rather than tackling the heavy cost of delivery, resulting in a battle of
business models.

“Logistics is a very different business. If you look at profit margins, it is more of a challenge,” Takeaway.com’s
boss Jitse Groen told the Financial Times earlier this month.

“I do not see the benefit for Uber of moving into food delivery: food gets cold and it’s the same time people
need to move. We do take it seriously because they have money; but I do not see why they are in a better
position than, say, JustEat.”

Uber believes it has a huge competitive advantage compared to local companies. “Uber has been delivering
people around cities for years, we are a key part of the infrastructure and we know how cities move,” said
Jambu Palaniappan, general manager for UberEats in Europe, the Middle East and Africa.

“We are not a marketing platform or an aggregator. Restaurants know we are experts at providing transport
and logistics, and no one is better positioned to deliver efficiency and cost savings.”

Analysts believe Uber could grab market share, although it faces challenges.

“I’ve spoken to a number of restaurants who were approached by Uber when they entered the UK market and
they said they didn’t need any more orders,” said Bob Liao, equity analyst at Macquarie Group in London.

“During peak hours, popular restaurants are switching off most of these marketplaces because [their] priority is
serving seated customers.”

31
Takeaway.com prices itself as next ‘unicorn’

19 septembre 2016

Takeaway.com is likely to become Europe’s latest unicorn after the online food ordering service said it would
float with a market capitalisation of between €904m and €1.1bn.

The Amsterdam-based group set an indicative price range of €20.5 to €26.5 a share, generating net proceeds of
€175m to fund its expansion in Germany, where it is in a fierce battle for market share with rival Delivery Hero.

If the float succeeds, Takeaway.com will join a small but growing group of European “unicorns”, technology
businesses worth more than $1bn.

Takeaway.com will spend roughly €40m on bulking up its German business, where it is trying to maintain its
position as the largest provider in the country.

Although the group is highly profitable in its home market of the Netherlands, where it enjoys an operating
margin of more than 60 per cent, it is lossmaking overall, thanks in the main to Germany. The group posted a
€13.8m loss before interest, tax, depreciation and amortisation from revenues of €77m in 2015.

Online takeaway ordering can be a winner-takes-all-market, with companies desperate to entrench themselves
as the leader in each country, resulting in an often brief but brutal fight between rivals. Earlier this year the
chief executive of Delivery Hero labelled the German market a “bloodbath”.

Another €22.5m will be used to pay off the acquisition of Just Eat’s business in the Netherlands and Belgium,
which the two rivals agreed earlier this year. A final €20m will be spent repaying loans, with the remainder kept
on hand for further marketing spend or even more acquisitions.

Jitse Groen, Takeaway.com’s chief executive who founded the company in 2000 and will maintain 95 per cent
of his shareholding, said: “The level of interest we have seen in the investment community so far is very
encouraging.”

32
Takeaway delivery apps seek dominance in fight for slice of European pie; Technology: Dining in

2 janvier 2016

Delivery Hero, Takeaway.com and Just Eat now look to build coverage in domestic markets

The race to take all the biggest stakes in the European market for takeout food delivery apps is largely over - at
least for now. After years of fierce competition, the main protagonists hope to free themselves from a ruinous
marketing war and build on their dominance in key markets.

The UK's Just Eat, Germany's Delivery Hero and the Netherlands' Takeaway.com are Europe's biggest players.

The takeaway groups act as online marketplaces, creating the software that matches diners to restaurants that
have their own fleets of couriers to deliver the food. Consumers are able to scan menus and complete orders at
the touch of a button and the groups take a fee of about 10-15 per cent of each transaction.

Analysts such as David Reynolds at Jefferies, the investment bank, say that the groups benefit from the
preference of most restaurants to work with few online partners. The restaurants do not want to have to
integrate many different technologies into their intense workflows, leading them to gravitate towards the one
or two online platforms with the most users.

Diners prefer takeaway marketplaces with the most restaurant coverage.

Mr Reynolds says this creates a "winner takes most" dynamic, where the market leader in a country gains
substantially more revenues than its rivals.

Just Eat was founded in 2001 and listed on the London Stock Exchange in 2014. Orders and revenues have
increased 50 per cent , and it now has a market capitalisation of about £3bn.

The company says it is the market leader in 13 of the 15 countries in which it operates, though 70 per cent of
its revenues are generated in the UK and Denmark. It has no plans to expand.

"We've looked at every market in the world," says David Buttress, chief executive. "There's no greenfield left."

Jitse Groen, chief executive of Takeaway.com, founded the company in 2000 and it now operates in 10
countries. Mr Groen says it is the leading player in the Netherlands and Belgium and he expects the company
to be profitable in 2016. But he is "hesitant to go to other countries" because it would be difficult to displace
the incumbents.

Berlin-based Delivery Hero was started in 2011. It is Europe's most heavily backed tech start-up, raising $1.4bn
from investors including Rocket Internet , the German tech conglomerate. It is also unlikely to expand far
beyond the 33 global markets in which it operates traditional ordering services, and says it is dominant in 29
countries.

33
"Growth will not come from new markets," says Niklas Östberg, chief executive. "Growth will come from
winning the markets we are in."

The companies are betting that larger revenues will come from the natural growth of the overall internet
delivery market. Mr Reynolds says most people still order food by phone, so each online takeaway group will
gain as people continue to switch their spending online.

Investors continue to back the sector. Online food ordering companies gained more than $1bn in investment
worldwide in 2014, according to CB Insights, the research firm.

But some see the potential for new "foodtech" entrants to build businesses based on different business
models. One example is London-based Deliveroo, which provides the "last mile delivery" for restaurants that
do not have an existing takeaway set-up. The company raised nearly $200m last month to expand its service
into new markets.

Unlike the three older companies, Deliveroo creates both the software that allows customers to make orders
and restaurants to process them, but also manages the network of drivers and cyclists who deliver the food.

Will Shu, chief executive and founder, says that it is "creating a completely new market" by attracting
restaurants with no history of offering deliveries, particularly high-end venues.

Delivery Hero is also investing heavily on logistics subsidiaries, such as its Food Express business, to provide
delivery for restaurants. But Just Eat and Takeaway.com have no plans to create delivery fleets, arguing the
model is not "scalable". "Just Eat would need 100,000 drivers for a couple of hours on a Saturday night," says
Mr Buttress. "The operative words are a couple of hours. You don't need them after that, because this business
is so peaky."

One more potential obstacle for three big European online takeaway marketplaces could be the intense
competition between them, particularly in the one market that remains up for grabs: Germany. Delivery Hero
owns big subsidiaries in the country such as Lieferheld and Pizza.de , while Takeaway.com has a strong position
thanks to its Lieferando brand. Rocket Internet has also backed other foodtech ventures in the country, such as
Foodpanda.

"Germany is not a big part of our business; it's 16 to 17 per cent," says Mr Östberg. "This means that I'm OK if
there's a bloodbath forever and ever . . . we're going to do what it takes to remain the market leader."

Mr Groen says Takeaway.com's annual marketing spend in Germany is in the "high double-digits", adding that
"our marketing budget is huge, even compared to the competition . . . We call it the bazooka."

34
Takeaway start-up Deliveroo nets $100m in latest fundraising

24 novembre 2015

Deliveroo has raised new capital to take its total funding to about $200m, making the London-based food
delivery group one of Europe’s best-funded technology start-ups.

The three-year-old company said on Tuesday it had raised $100m to fuel expansion in new markets in Asia, the
Middle East and Australia.

The new funds will also help Deliveroo in its battle against rivals such as Take Eat Easy, a Berlin-based group
backed by Rocket Internet, the German start-up investor that has snapped up more than €600m of equity in
food-delivery rivals across Europe and Asia.

Larger competitors include the UK’s Just Eat, which has a market capitalisation of close to £3bn, and Germany’s
Delivery Hero that has raised $1.4bn from investors. Both companies target the less expensive end of the
takeaway market.

Highly valued ride-hailing service Uber has also begun to offer food delivery services as it looks to expand into
other sectors.

Deliveroo’s latest funding round was led by Digital Sky Technologies, the venture capital firm run by Yuri
Milner, an early backer of Facebook, Airbnb and Alibaba, as well as Greenoaks Capital, a Silicon Valley-based
fund. Existing venture capital backers Accel Partners, Hummingbird Ventures and Index Ventures also
participated in the round.

The company declined to comment on its valuation but one person familiar with the matter said the new
investors valued the company at $600m. Another person close to the deal said this had increased substantially
in recent weeks.

“We’ve demonstrated extremely strong growth since inception,” said Will Shu, Deliveroo’s co-founder and
chief executive. “Investors have been impressed by that.”

Mr Milner said the company was “providing a great food delivery experience for their customers, restaurant
partners and drivers. We hope this new round will support their continued growth.”

The company does not declare its financial performance but has said the number of daily orders it has received
increased tenfold this year.

Deliveroo intends to launch in five new cities: Dubai, Hong Kong, Singapore, Sydney and Melbourne. It already
operates in 30 British towns and cities, as well as Dublin, Berlin, Paris and Munich. The company concentrates
on affluent cities with high urban density, which it said made it easier to deliver food quickly.

35
It is the third time in the past year that the start-up has turned to investors. In January, the company raised
$25m. In July, it raised a further $70m, at a valuation of $315m — a $200m rise since the start of the year —
said people familiar with the matter.

Deliveroo runs its own network of delivery drivers and riders to restaurants, as well as providing the technology
that underpins the takeaway service. It says this appeals to neighbourhood eateries and high-end restaurants
that typically do not offer takeaway services. It accepts orders from 5,000 restaurants, ranging from Michelin-
starred establishments to high-street chains such as Gourmet Burger Kitchen and Wagamama.

But the model means Deliveroo is likely to have higher operational costs than purely online groups such as Just
Eat. The company must pay and maintain its fleet of drivers and vehicles, while also establishing an on-the-
ground salesforce that must enter high-end restaurants to persuade them to join the service.

But Mr Shu said Deliveroo was “building a new market” by attracting restaurants with no history of offering
deliveries, while attempting to become a household name that can cater to more than just well-off consumers.

“We want to be the go-to destination when you’re at home,” he says.

The company takes a commission from the restaurant for every sale, while also charging a small fee — £2.50 in
the UK — from each customer.

The size of Deliveroo’s latest funding represents a relatively large amount for such a young European tech
company.

In the past year, the online luxury fashion retailer Farfetch, money transfer group TransferWise and music
recognition service Shazam have all announced smaller funding rounds, yet were valued at a $1bn valuation.
But each of these companies had existed for longer than Deliveroo, and the young start-up’s fundraising comes
as investors become increasingly sceptical of the lofty valuations of some early stage tech companies.

36
Rocket Internet seeks about €600m in fresh equity

12 février 2015

Rocket Internet is planning to raise about €600m in a fresh equity offer, underlining the rate of cash burn at the
Berlin-based ecommerce group that floated in October.

The ecommerce investor raised €1.4bn in its initial public offering and has invested around €1bn since its
floated on the Frankfurt stock market. Its biggest recent investments have been in food delivery, including
€496m for a 30 per cent stake in Delivery Hero, a Berlin-based online food takeaway service, and €150m on
Kuwait-based food takeaway portal Talabat.

Rocket is spending an additional €110m to acquire a majority interest in HelloFresh, a grocery delivery
business, also based in Berlin.

The company plans to sell up to 12m new shares, corresponding to about 7.8 per cent of its share capital. The
final price and exact number of shares to be issued in the private placement will be announced on Friday,
Rocket said.

Existing investors Baillie Gifford and United Internet have confirmed participation with orders worth €210m,
Rocket said on Thursday.

Oliver Samwer, chief executive, said the capital increase confirmed its commitment "to become the world's
largest internet platform outside of the US and China". Analysts say Rocket provides investors with a unique
opportunity to put money into ecommerce in emerging markets, where it often has first mover advantage.

The new shares are expected to begin trading on February 17. The company said the funds would be used to
finance growth, confirming plans to launch 10 new companies this year. Rocket also plans to invest in its
operational platform.

So far, Rocket has had little difficulty raising cash from investors. But there is increased competition in
emerging markets.

Amazon announced an extra $2bn investment in its Indian operations last year, after Indian ecommerce
company Flipkart said it had raised $1bn to upgrade its mobile technology platforms.

In a note to clients about Rocket last year, analysts at Berenberg led by Sarah Simon warned: "Given the rising
competition in some markets from major players such as Amazon, the funds required to break even may be
larger than originally envisaged." Observers also warn that Rocket has a sprawling empire of companies, all of
which are lossmaking.

In recent months, Rocket's management has sought to impose greater order on its operations. It is bringing
together all its food takeaway businesses into a single global group, the same approach it applied to its fashion
companies in September. Rocket shares closed down 4.2 per cent at €53.80 on Thursday.

37
German food ordering website Delivery Hero buys rival Pizza.de

15 août 2014

The global competition to dominate the market in online food ordering has heated up after German takeaway
platform Delivery Hero announced the acquisition of a local rival.

The company's purchase of Pizza.de for an undisclosed amount creates a combined market share of 75 per cent
of the online food sector in Germany.

The takeover follows a $60m funding announcement by another German takeaway platform, Foodpanda, part
of the Rocket Internet stable.

Technology-enabled food companies have whetted investors' appetites. Just Eat floated in London in April,
raising £360m. In the US, GrubHub beat expectations to raise $192m in an initial public offering. Delivery Hero
is considering an IPO next year.

But critics say that margins are tight and the model of acting as a middleman between diners and thousands of
local restaurants can easily be replicated.

The takeover of Pizza.de enables Delivery Hero to consolidate its position in its home market before turning its
sights abroad, where the rival platforms are fighting for market share. Delivery Hero, which has an estimated
value of $1bn, plans to focus particularly on Asia and Latin America.

Delivery Hero said: "In our business, which is winner-takes-all, it is important to be a market leader."

The company declined to comment on the financial details of the transaction. The two brands will remain
separate.

On Monday, German rival Foodpanda announced a financing round of $60m from investors including existing
backers Falcon Edge Capital and Rocket Internet, the Berlin-based creator of ecommerce ventures.
Ralf Wenzel, Foodpanda's managing director, said in a statement: "The new funding will be invested in
continuous growth in our existing markets, by partnering with even more restaurants in more cities and further
improving customer service."

38
 II. Selection of articles mentioning “Food Panda”

Rebel Foods partners with Foodpanda to expand in APAC countries

21 octobre 2021

This will help expand and create virtual kitchens across 2,000 outlets

Cloud kitchen company Rebel Foods on Thursday announced that it has partnered with food and groceries
delivery platform Foodpanda to expand and create 10 virtual kitchen brands across 2,000 outlets in the APAC
region. They have already piloted the project at six targeted countries including Singapore, Malaysia,
Bangladesh, Thailand, Hong Kong and the Philippines.

In the first phase of its 5-year long partnership, Rebel Foods has gone live with four of its many brands
including Faasos, The Biryani Life, Lunchbox and Honest Bowl. Honest Bowl was jointly developed by both the
companies. They are looking at not just enhancing existing brands and creating new offerings and brands. The
menu of all of these brands will be customised depending on the cultures and countries.

Virtual kitchen

The QSR-format virtual kitchen brands will be run through both company-owned and franchise models. For
franchise owners, Rebel Foods will enable them with its tech-based culinary expertise, efficient SOPs and
ready-to-deploy brands. And Foodpanda is training the staff of the restaurant partners and cloud kitchen
operators to plug-and-play the virtual brands into their current operations and grow additional revenue
streams, at little to no start-up costs

Pedram Assadi, COO, Foodpanda said, “This is the largest virtual brand partnership globally. In the past six,
orders from Rebel Foods’ brands on foodpanda app on average grew 40 per cent month-on-month. As of
today, we are live with more than 200 outlets across the six markets.

While Rebel Foods recently turned a unicorn, Foodpanda’s run in India hasn’t been quite lucrative. The
companies told BusinessLine, that they won’t be looking at setting up any of these outlets in India, which
means Foodpanda doesn’t plan to re-enter the India market. Its operations in the country was acquired by OLA.

Kallol Banerjee, Co-founder, Rebel Foods said, “The next generation of businesses are essentially disruptors on
the internet. For Foodpanda and Rebel Foods teams, who are more on the supply side and kitchen side
respectively---this is where it all comes together. Just like brands such as Nike which is getting manufactured at
one place and then retailed by a Walmart, food too will see a similar trend, wherein brand, manufacturing,
distribution of food will no longer be in the same place.

Globally, food panda operates in more than 400 cities across 12 markets in Asia - Singapore, Hong Kong,
Thailand, Malaysia, Pakistan, Taiwan, Philippines, Bangladesh, Laos, Cambodia, Myanmar, and Japan. It is a
subsidiary of German food delivery company Delivery Hero.

39
FoodPanda riders refute Bello's claim that they've settled with management

22 juillet 2021

Foodpanda riders in Davao City held a protest on July 15 to dramatize their complaints which, they claimed, the
management continues to play deaf to.

DAVAO CITY---The group of riders of the popular food delivery app FoodPanda refuted the claim of Labor
Secretary Silvestre Bello III that everything had been settled between the management and the riders earlier
suspended for 10 years for initiating a silent protest over their measly pay.

"We have not settled with the FoodPanda management yet because our dialog is still scheduled on (July) 26th,"
said Edmund Carrillo, president and cofounder of the Davao United Delivery Riders Association Inc., on
Tuesday. "It's not true that we have settled with FoodPanda. We are still waiting for the dialog called by DOLE
in the region to come up with an agreement with management and a possible solution," he told Inquirer.

Bello was quoted on television saying that except for a few, most of the riders had already settled with
management and were already back to work as early as Friday.

"What do they mean we've already patched up?" he asked. "Does it mean that FoodPanda has already ironed
out the system and the exact computations of our earnings? That everyone who was suspended would already
return to work without pre-conditions? That we could already avail of the health and accident insurance which
they deducted from our salary every month?"

Glen Costan, one of the riders, said they wanted to look into the health and accident insurance that the
company had arranged for them because of an earlier case of a rider who had an accident but had difficulty
claiming his insurance.

Carrillo earlier told the Inquirer that the management had been conducting individual dialogs with affected
riders, allowing those who would identify the leaders of the scheduled July 14 and 15 "offboarding" to go back
to work.

"They have been conducting individual meetings with the riders and those who would tell on six of their
leaders would be allowed to return to work," Carrillo said.

But he said more than 30 riders vowed not to attend the individual meetings called by management as they
preferred to face FoodPanda on the 26th at the DOLE office here.

Carrillo said the management had been trying to divide the ranks of the riders by talking to them individually.
Some riders continued to get a message from management asking them for a meeting tomorrow, July 21, to
iron out the issue.

"They're trying to divide us, to bury the issue and drown our calls. I hope DOLE and Secretary Bello will see
this," he said. "We still hope that FoodPanda management will face us during the dialog with DOLE so that

40
everything will be transparent. We urge Secretary Bello to listen to us and get our side. We are still hoping that
DOLE, even if it would not take side with us on this issue, would at least be fair," he said.

The riders initiated the silent protest after their pay suffered a precipitous decline last month, following the
new payment scheme that the company implemented in May. The new payment scheme factored in the
distance for each rider's trip. Food Panda used to charge a minimum flat rate of P55 and a maximum of P75 for
the most productive riders, regardless of the distance.

41
Foodpanda Davao riders protest low earnings, harsh policies

17 juillet 2021

A night before Foodpanda delivery riders started their three-day rest from their delivery schedule to air their
grievances, Beni got a message from the company saying his account is suspended for joining this protest.

Other riders who were planning to join the protest also received the same notification that their accounts are
suspended for ten years until July 13, 2031.

The company's notification read:

We have received reports that you are one of the group of riders that planned a no-show in their shifts on July
14, 15 and 16. We want to remind you that if you continue with these actions, this will affect fellow Foodpanda
riders. This action violates the Freelance Agreement with FoodPanda. Your action is in violation of the said
agreement. For this, we are informing you you are offboarded from FoodPanda.

His suspended account meant Beni cannot claim the P1, 050 earned from delivering food orders from the
previous days. He was supposed to set aside this money for his son's birthday this Sunday.

No, they were quick to suspend our accounts. They did not even ask to verify if we are really staging a no-show
or we were just late in getting our schedule. It is normal that we complain because they were ambigouos' Beni
said during their protest action that saw 300 riders gathered in Roxas Avenue on the morning of July 15.

Year-long complaints

Foodpanda riders had already raised complaints to their management last year on certain issues which the
management did not address.

Actually this problem had persisted for a long time, we had complained to them but there was no action from
their side' said Edmund Carillo, president of the Davao United Delivery Riders Association Inc.

Last April, the riders complained to the city government that the Foodpanda management passed on to them
the burden to pay their business permits amounting to P4,000, which prompted City Councilor Pamela Librado-
Morata to facilitate a consultation that pushed for the suspension of the permit collection.

Carillo said they also encountered instances when management would suddenly suspend the riders' account
for violating delivery protocol and terminate their partnership without benefit of dialogue.

He pointed out that management suspended around 300 accounts, citing a violation of a 'No Show' provision as
they decided to hold a 'three-day rest day' as a form of protest.

Upon learning that they were terminated from work, the riders decided to conduct a motorcade protest on
Thursday ending at the Foodpanda Davao Office to Roxas Avenue, to express disappointment on the company's
move to terminate their contract instead of addressing their complaints.

42
Carillo clarified that they did not initially plan to do the motorcade protest but did so upon learning that while
the company terminated their accounts, they started to hire new riders to replace them.

On the same day of their protests, hundreds of individuals were seen queueing at the Foodpanda-Davao office
as received Foodpanda bags and uniforms distributed by company personnel.

No clear agreement

Carillo said these new riders may experience the same thing they had with the management.

Once a rider is considered as a partner of the company, they will receive a Food Panda mobile application,
attend an orientation, and pay for their uniform and delivery boxes. During the orientation, the company will
discuss 'the benefits of being their partner' as a rider.

But in the whole process, Beni and Carillo said the management did not talk about the 'Freelance Agreement
with Foodpanda' that they mentioned in the notification nor explained the basis of computation of percentage
per delivery that they will receive.

Carillo said there is no contract or agreement to begin with as a basis of this violation to terminate riders from
work.

They terminate our accounts quickly, but to think of it, we are considered partners of the company yet we do
not receive hazard pay. Many of us have gotten sick exposed to the rain, drove through flood just to deliver our
orders. There were even some who met accidents but the company did not care,' Carillo said.

In the absence of the Freelance Agreement, the riders say they were puzzled about some company policies.

How much do riders earn?

Another rider, Boyet, said the company has its own computation of its delivery percentage which often makes
them receive a lower payment. He said Foodpanda computes their percentage per delivery through its own
online application system where the rate is based on road distance between the food supplier and the
customer.

The problem is for instance, if I make a delivery from Maa to my customer in Brokenshire [Hospital], their road
computation is lower than my travel distance (around 4 kilometers). The result is I get a lower percentage from
earnings, but i consumed more gasoline because I get stuck in traffic,' he explained.

Riders earn P23 per delivery in a road distance of Bonifacio Street to City Hall that is 800 meters within the
maximum delivery time of 10 to 15 minutes. But Boyet said the calculation does not consider the city traffic
and other factors like road construction which are plenty in the city that forces them to find other routes.

For long-distance delivery like from R. Castillo to Cabantian area which takes about 7 to 8 kilometers, he said
they only earn at least 30 to 40 pesos from the company's own calculation of distance.

There is an increasing number of riders employed by Foodpanda due to the pandemic, which is estimated at
around 1,600 riders.

43
To accommodate these huge number, the company divided them into four batches.

Batch 1 comprises only 10 percent of the delivery riders and they earn a maximum of P800 a day, while batches
2 and 3 earn at least P700 depending on the orders in their delivery schedule.

Batch 4 is the biggest batch approximately 50 percent of the total riders, and have the least delivery schedule
and are mostly on-call during wee hours at night until dawn.

In a month, a rider spends P1,200 for load allowance, P4, 500 on gasoline (at P150 per day) and P350 for
motorcycle maintenance. Most riders also allot their income to pay for the monthly installment of their motor
vehcile worth P2,500 to P6,000 depending on the model of their motorcycle units for three to five years.

Honestly, we don't save anything from our income because of these costs. We earn little because there are
plenty of us scrambling to meet delivery, ' Beni said.

Intervention sought

As a father of four, Beni turned emotional talking about how to support his family now he has lost his job.

‘I'm the only one supporting my family, I'm feeding six people. My children are very young, what will I do if
Foodpanda will not return our access and I can't get my last earning? One thousand pesos is already a huge
amount for us poor,' he said.

He is also worried about his motorcycle unit that he has been paying for over 14 months. He is now thinking of
returning the unit to the lending company or find another job to continue his payment.

But finding another job is another struggle as the economy is in crisis due to the government's restrictions in
this pandemic.

Because of our situation, my child will not even have a little celebration because I have nothing. I wish the
company understand us, we do not mean to destroy their operation, we just want them to address our
situation),' he added.

Beni and many other Foodpanda riders share the same sentiments as they staged their protest, asking the city
government to intervene to protect the riders.

44
Amazon Planning to Launch Food Delivery Service in India: Report

27 février 2020

Amazon, the e-commerce giant, is eyeing at the Indian food delivery market and is expected to launch its own
delivery service, a report said on Thursday, citing a person familiar with the matter. If true, Amazon will be
setting up against local food delivery giants, Swiggy and Zomato, after the exit of UberEats in January 2020. The
report comes nearly a month after its founder Jeff Bezos's visit to India. At the time of his visit, Bezos had
announced an investment of over $1 billion to help digitise the small and medium enterprise sector in the
country.

According to TechCrunch, the launch of the service, which would be offered as part of either Amazon's Prime
Now or Amazon Fresh platform, could happen in the coming months. The report also added that Amazon has
been working on the service for several quarters and had planned on launching it earlier, however it is unclear
what caused the delay. The company has also been testing it in Bengaluru for some time.

When approached, Amazon didn't say anything about the food delivery service and mentioned that we will
hear from the company when it has something to reveal officially.

"We believe in innovating on behalf of our customers to create newer experiences for them. As part of this
commitment, we are constantly evaluating new areas and opportunities to connect with and serve our
customers. We will come back to you when we have something to announce,” the company told Gadgets 360
in a statement.

At the moment, Amazon is competing against several local and international giants in India in multiple verticals.
When it comes to food products, the company in August last year, launched AmazonFresh, offering food and
grocery items, that is in direct competition with startups such Grofers and Big Basket. The service by Amazon is
powered by its Prime Now service.

Amazon's entry into the food delivery market can also be favourable for the company since many restaurants
have been showing frustration with the existing apps. For instance, in September 2019, the National Restaurant
Association of India (NRAI) had slammed Zomato for extending its "Gold" programme on its delivery platform,
saying it is a desperate attempt by the online food aggregator to shore up the sinking fortunes of its flagship
Gold programme.

In January this year, Uber had sold its online food-ordering business to the local rival Zomato in
exchange for a 9.99 percent stake. Ola's Food Panda last year stumbled after a report claimed that
the company is suspending its business, just 18 months after acquiring it.

However, the battle is not fully won, given Flipkart's plans to enter the food retail market and existing
aggregators' strong foothold across the country.

45
Acquisition Of Uber Eats By Zomato – The Flaw In The Plan With Deep Discounting

7 février 2020

Yet another business gets hit by deep discounting! Clearly, this strategy can help penetrate and acquire market
share only as long the wallet stretches. Uber Eats was no exception to this; even two attempts in this space by
Ola (namely, Ola Café and Food Panda) were unsuccessful, with the latter moving to cloud kitchen services,
after realizing the restricted penetration potential in the food delivery business.

With a customer base that remains loyal only to discounts, stiff competition, and lack of service differentiation,
the food delivery industry seems on its way to reaching the last ones standing and driving out smaller players.
While operational costs are ever-surging (due to increasing discounts, high cost of customer acquisition, time
and incentive cost of onboarding an extensive network of restaurants, high investment in the delivery fleet),
the revenues are nowhere near reaching any profitability.

With the all-equity deal of Uber Eats with Zomato (where Uber obtained a 9.9% stake in Zomato for the entire
Uber Eats business), Zomato and Swiggy are the two largest players still standing in the Food Delivery business.

A high-level look at a couple of the sectors where players used deep discounting clearly shows the importance
of deep pockets, product differentiation and value-addition, forward and backward integration, and eventual
market consolidation.

Evident from players across industries, like Snapdeal, Meru Cabs, and Vodafone, who have lost a substantial
market share due to the absence of such differentiation (or integration), staying afloat in the cost-sensitive
Indian market requires strategic and tactical agility. Not only did Uber Eats enter the market late (in mid-2017),
but it also didn't differentiate itself; it focused only on the deep discounting strategy for market coverage,
which proved to be unsustainable. Uber Eats had been looking to exit the market for a year and was in
advanced discussions with Swiggy, which didn't materialize due to differences in valuation estimates and tax
implications.

The two surviving Food Delivery players have systematically differentiated their offerings. Zomato has several
services — food blogging, ads, dining, Zomato Gold, etc., while Swiggy is considering grocery and non-rush-
hour delivery as its long-term goal, with Swiggy Stores.

This deal clearly demarcates a trend of how it is the imperative of any company to add value, integrate other
business streams, and to go beyond deep discounting, to gain and maintain an edge in the market. Let us now
wait and watch how the last standing two giants of the food delivery business try to outwit each other in the
future!

46
Forum: Many reasons why food delivery services should be discouraged
29 novembre 2019

A recent study commissioned by Deliveroo, one of the big players in the food delivery sector, found that 69 per
cent of consumers in Singapore use food delivery apps at least once a month.

Many are willing to fork out a fee so that they can have their favourite food without having to leave home. But
this convenience comes at a huge cost to the environment as it creates excessive waste from the use of
disposables.

Singapore aims to cut waste sent to the Semakau landfill by 30 per cent by 2030, to help the facility last longer
than the projected 2035. Already, its expected lifespan has been shortened from 2045 to 2035.

About 2,100 tonnes is sent to the landfill daily. The National Environment Agency (NEA) said that only 7 per
cent of plastic collected here last year for recycling was processed locally.
The small proportion worries experts because there is currently an oversupply of such plastic. Hence, the more
effective solution is to reduce, not recycle.

Besides the waste problem, food delivery services have created a host of other issues too.

There are tens of thousands of food delivery workers here, with some 7,000 using personal mobility devices
(PMDs), mainly e-scooters. The number of accidents involving PMDs has gone up with the increase in users.
Many of the workers in the gig economy, which includes food delivery services, are younger than 35. Most opt
to work in this sector because such jobs offer flexibility and convenience for them to pursue other activities.

But, in the long run, their job prospects look dim. Such workers are vulnerable due to the lack of labour
protection laws and opportunities to learn real skills, limiting their prospects for social mobility.

This may further trap them in the lower rungs of society.

Hawker centres, coffee shops and foodcourts are located close to most homes. There is no good reason to have
food delivered to the doorstep.

It encourages laziness.

47
Thailand's food delivery business up 14% in 2019.(BUSINESS)

28 juillet 2019

We're eating in more and dining out less. But we can still enjoy our favourite restaurant food. Welcome to the
latest 'disrupter' making inroads to our eating habits.

KResearch (a part of Kasikorn Bank) estimates that the food delivery business in 2019 will amount to 33-35
billion baht, up 14% from last year. Food delivery apps are another example of 'digital disruption', and are
transforming consumer behaviour as well as the restaurants' food supply chains.

(Thing Food Panda, LineMan and Grab Food among many other franchises and individual restaurants now
offering boutique delivery services.)

It's estimated that food delivery apps and businesses will account for 8% of Thailand's total restaurant business
in 2019.

The findings show that 63 percent of the respondents to a survey believe that the advent of food ordering apps
has changed their food consumption behaviour. Diners are increasingly ordering food online platforms, and
eating out at restaurants less.

The burgeoning food delivery and related application business has increased opportunities for players in
restaurant supply chains, including small and big restaurants, to generate more income as they can reach out
to new groups of customers beyond their regular catchment of regular eaters.

Delivery motorbike riders can also earn extra income by receiving business from online food delivery platforms;
the market share of the delivery motorcycle services is estimated at 3.9 billion baht this year.

Restaurant chains are being forced to add channels for receiving food orders from outside customers and offer
a wider variety of menu options.

One thing is for sure, you will see more motorbikes zipping around your area delivery all sort of foods to homes
around Thailand.

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How Swiggy was able to take on Foodpanda?

26 mars 2018
Think of your life before ten years and imagine that you are starving, tired and wish to eat something. So,
probably you would move to the desired place and satisfy your hunger there or you would have ordered via call
and went there to pick it up. Right? Would you be able to order food and get it delivered to your doorstep
without moving then? Obviously not! But be happy as you can now! With multiple of online food delivering
applications available today, ordering mouth-watering food online is not at all cumbersome anymore. And out
of those Swiggy and Food panda are the most popular ones among users. What makes them this famous and
which one is better of the two? By this time, these questions must have been on your mind. Both of them are
unique in their own ways but Swiggy takes over Foodpanda in this quest as it offers numerous better features
and is unbeatable in terms of delivery and reliability.

Why is Swiggy a better option?

Customer satisfaction is the key to success and this Bengaluru based online food delivery app- Swiggy has been
a live example of this belief. Undoubtedly there are several food delivery apps available today, then why do
most of the people use and trust Swiggy a lot? Well, It is the incredibility and efficiency along with some of
amazing swiggy coupons like flat 25% cashback to help the customers’ save on orders and as well to lure them;
is what keeps it one step ahead of its competitors and the most amazing part is you get so many advanced
services and features on this app that are hard to find on that of others. The speedier you are the better you
will be, Swiggy is known for its quick delivery facility that gives it a competitive edge as well. Let us dive deep
into this discussion:

No Minimum Order Policy

Swiggy is the best for anything and everything you wish to order! Here one can order for as smaller amount as
desired as there are no minimum order value restrictions imposed on customers. While when it comes to
FoodPanda, you can order only once your order value has crossed the minimum transaction value limits. And
this feature works wonderfully for customers as they can order whatever they want to and get that served at
their doorstep in no time.

More Reliable and Fast

Ordering food online is not just about comfort and discounts, besides that it focuses on the ease and
convenience one experiences while using the service. If the online food ordering service was too complex and
chaotic, you would prefer going to a restaurant then. Won’t you? But relax as Swiggy has got the most
phenomenal app one could ever use , it is super easy, reliable, quick and awesome to order through it. So, why
would anyone choose other apps? Moreover the Swiggy app is embedded with so many exciting features that
aren’t available on most of the other food ordering apps. On the other side, FoodPanda’s app is not at all
speedy to use, it does have some nice features but when compared it doesn’t beat Swiggy.

Ride Tracker
Don’t you feel super curious between the moment you placed the order and till the time the actual delivery is
made? Everyone feels so! You wish to know the exact location of where your tasty food actually is, and with
Swiggy it is possible to know the same. You can easily track the location of the your order by using the ride
tracker option provided on the app. Foodpanda doesn’t had any such feature and moreover keeping a record
of previous orders is quite tough on FoodPanda as compared to the spectacular app- Swiggy.

49
Multiple Filters
Choosing the perfect fit from uncountable options would have been a tough task if we weren’t blessed with the
filter feature on our side. With Swiggy, you can opt for these multiple filters like you can filter restaurants on
the basis of the cuisine you are looking to order, budget, and delivery location and so on. Once you have
applied these filters, you can check up restaurants that go hand in hand with your requirements. Well,
FoodPanda lacks here too and does not have any such facility.

Swiggy Express
While you travel, what do you prefer? Slow moving passenger trains or super -fast expresses? Obviously
expresses get more attention and love as they are way faster than the former ones. The website along with
swiggy app is up with one more marvelous feature-Swiggy express that allows you to get your food within 15-
20 minutes from the order time. Now this sounds extraordinary and it definitely is! FoodPanda is way beyond
this feature as the normal delivery time it takes is more than 45 minutes, so how come such fast delivery? And
this is one of the most basic reasons that why swiggy has been successful in ruling over the industry.

Fast Delivery
Why do you order food? To eat, that’s sure. But till what time you can wait for having that food? Now, this is
the real question. There is no point of opting for an online delivery service that delivers your food in 70
minutes. Till that time, you might turn into a hound. Well with Swiggy, this is not going to happen as it has a
commendable delivery team that delivers your order in maximum 37 minutes. But with Foodpanda you need to
learn the art of patience as it takes too much time to deliver with 45 minutes being the minimum time taken by
the app.

The Ultimate Quest

Now, which app will be best for you depend on certain factors. What as per you is the most significant feature
an online food delivery app must embody? What do customers mostly look for? Both the apps have their
benefits and shortcomings too but which one is the greatest is a matter of choice. Foodpanda has larger
number of restaurants and offers more discounts than Swiggy but has a slow service and poor app convenience
as compared to Swiggy. Swiggy don’t provide offers and discounts like Foodpanda but it do offers an
impeccable service equipped with fantastic features. As far as user experiences are given preference it won’t
be unfair to say that Swiggy really has taken over Foodpanda in terms of service and customer value.

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Doing food delivery alone is not sustainable: Zomato CEO

28 juillet 2017

Mumbai, July 27

Having survived in the foodtech delivery segment for the past nine years, Zomato CEO and founder Deepinder
Goyal claims the firm is well-funded and on the path to profitability. Today, Goyal wants to stay away from the
valuation game (last year, HSBC Securities and Capital Markets had slashed the company’s valuation to $550
million), and is on now on the verge of acquiring delivery platform Runnr. According to Zomato’s annual report,
it achieved $49 million in revenues in FY17, a growth of 80 per cent over FY16. The home-grown global
restaurant-discovery and food-ordering platform has been piloting new concepts such as Zomato
Treats(subscription-based service for free desserts), and also tied up with Ola to offer a range of integrated
services to customers. Having reduced its operating losses and cash burn, Goyal highlights some of the new
initiatives taken by Zomato, and how he intends fighting competitors such as Swiggy and Food Panda in future.
Excerpts:

Is Treats expected to give a fillip to your existing revenue base?

Zomato Treats, our second subscription-based offering, was launched at scale a little over 45 days ago. We
have partnered with over 2,500 restaurants for this initiative, and have already sold over 10,000 memberships.
Treats was launched with the intent of driving further delight to loyal users who order through our platform. As
a Zomato Treats member, you get a complimentary dessert, every time you order a meal from one of our
partner restaurants in India or the UAE. The membership costs Rs. 299 for a year in India and AED 39 for six
months in the UAE. It is also already driving repeat usage — we have already seen around 25 per cent jump in
order frequency from Treats subscribers; we see this trend holding over time. Our restaurant partners are also
seeing an increase in repeat orders from the same users. As we scale-up, we see Treats contributing
significantly to our overall online ordering business.

How is the UAE market different from India in its response to Treats. What have been the learnings?

The key learnings have been fairly similar across both the markets. The key to making the model work is
ensuring our users have sufficient choice in terms of great dessert options. This translates to having strong
partner restaurants on board, offering variety across cuisines, mealtimes, price points, etc. This is something
we, along with our partner restaurants, are actively focussed on.

What has also been consistent across both markets is that the frequency of orders placed by Treats users has
increased in the post-purchase period. This validates the efficacy of Treats as a programme that helps drive
user stickiness. One difference however is the pricing and duration of membership. Taking learnings from our
wider online ordering business, we have seen that users in the UAE tend to order more frequently than those
in India, which has helped us keep shorter renewal cycles in the UAE.

How does Zomato expect to compete with UberEats?

UberEats has been competing with us for over a year in Dubai. Of over 3,000 restaurants in Dubai that deliver
food, 1,400 are exclusive partners with us. We do 20,000 orders per day (in Dubai) and believe we are

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significantly larger than UberEats in Dubai. I think our single biggest advantage over them is a strong brand and
the trust of the restaurants and the consumers.

How will the acquisition of Runnr help Zomato?

The acquisition will pave the way for a new service, Zomato Valet. A premium service, Valet will focus on high-
value restaurants that don’t deliver food on their own. The idea is to provide more choices and cater to special
occasions. Because the average order value will be very high, owning the last mile for these deliveries will
amount to positive unit economics.

Since delivery is the main cost in foodtech, how will Zomato compete with other players?

Currently, around 93 per cent of our orders are fulfilled by restaurants and only about 7 per cent is facilitated
by Zomato through third-party delivery companies. The high-value deliveries through Valet will be fully owned
and fulfilled by Zomato. We don’t think that doing food delivery only for a logistics business is a sustainable or
profitable option. Restaurants doing self delivery like they have been for the last few decades will work best,
because they are able to utilise their delivery boys for other errands in non-peak delivery hours. Or then, third-
party players who do food delivery as well as other logistics during non-peak hours, is sustainable.

Hence, we will continue our hybrid delivery model. We believe this approach solves for both a) providing large
number of choices to consumers and b) having a sustainable and profitable business model.

How does Zomato differentiate itself from competitors such as Swiggy and Food Panda?

Over $220 million has been spent on the food-delivery sector in India, of which $160 million has been burned
by just two companies. In contrast, we have built our delivery business in about $7 million. One of the main
reasons for this difference is — our spends on customer acquisition and marketing are minimal. We have a
strong search and discovery product wherein users generate a lot of content — reviews, ratings, photos —
leading to strong network effects.

These users provide a large organic acquisition channel for our food-ordering business. We have had a long-
standing relationship with our restaurant partners, and have, over a period of time, helped them improve their
own delivery capabilities through sharing customer feedback and technology, like Zomato Trace. We believe
working with restaurant partners and building the ecosystem is the right way to scale the ordering business.

We were one of the last players to enter the food-ordering market in India in June 2015, and are excited now
that the gap with the largest competitor has narrowed down to a small difference in order volumes. Our
average order value currently is Rs. 420 in India and AED 65 in the UAE. The average commission earned is 8
per cent, and our GMV exceeds that of our nearest competitor. We already have over 7,500 exclusive
restaurants with us in India, and this number is growing by over almost 300 every day.

How is Zomato planning to reduce cash burn?

We are at a monthly burn of less than $250,000, and are on track to become profitable within FY18, by
focussing on increasing revenue profitably and reducing inefficiencies. We have also rationalised our
international operations to focus on a few key markets, while enhancing our teams’ productivity using tech. We
have stayed away from business models that are not profitable at unit economics level, and have not spent
money on buying unsustainable growth.

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UberEats launched in Delhi-NCR

29 juin 2017

As per a report in The Financial Express, after launching its online food-delivery service UberEats in Mumbai
last month, online cab aggregrator Uber on Wednesday launched its services in the Delhi-NCR region. However,
its service is currently available only in Gurgaon, with plans to extend it to other parts of the region.

"We had launched UberEats in certain parts of Mumbai and within a few weeks, we have scaled it to cover
almost the entire city, given the demand. We hope to see similar patterns here (in Delhi-NCR)," said Bhavik
Rathod, Head of UberEats India. The company which has partnered 200 restaurants in Mumbai has on-board
300 restaurants in Gurgaon.

As Uber expands the service of UberEats, the competition in food-tech business which also has other start-ups
including Food Panda, Swiggy and Zomato, is expected to intensify. Moreover, Uber's move into the food
delivery category in India came a year after its rival, Ola exited the category. Ola operated Ola Cafe in Delhi,
Mumbai, Bengaluru and Hyderabad. However, stiff competition in the segment forced the Bengaluru-based cab
aggregator to shut down the food delivery service.

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Online food delivery witnesses seesaw effect; can UberEat's revive hope?
10 mai 2017

With the foray of UberEats, India's food-tech sector is now showing signs of recovery. While the restaurant
industry grew 11 per cent from 2015 to 2016, it was far outpaced by food delivery’s 30% figure in the same
period, according to RedSeer Management's 2017 report.

Although this includes all delivery orders placed—online, over the phone, in-person, etc—a sizeable part of the
success stemmed from the expanding online food-delivery market.

India’s food delivery sector had gone from soaring high to plunging deep into the oceans with companies
shuttering and downsizing and food tech investments plunging from $500 million in 2015 to $80 million in
2016. However, restaurants and customers have been embracing online food-ordering. However, the onset of
cash-flush global competition in the space could once again kick off a similar battle. There's also been a wave of
consolidation lately — on-demand meal delivery startup TinyOwl was acquired by hyper-local delivery firm
Roadrunnr last June. Then, in December, startup DeliveryHero acquired competitor FoodPanda.

According to RedSeer's report the restaurant industry is estimated to be $56 billion and the delivery industry is
pegged at $15 billion. Online food delivery grew at a staggering pace of 150 per cent to reach $300 million in
GMV terms in 2016.

Online food delivery players handled on an average 1,60,000 orders in a day with an average order value of $5.
61 per cent of the organised restaurants in Delhi, Pune, Bangalore, Hyderabad and Mumbai have delivery
option.

On an average, bill value for delivery orders is 5 per cent less than that for dine in orders.

Major factors driving the growth in delivery:

•Changing consumer lifestyle
•Young population
•Increasing disposable income
•Greater share of women in workforce

UberEats entry into India's foodtech space

Uber's UberEats is a new entrant in the already crowded food-tech space in India. The trend started with
startups like Zomato and later Food Panda, Swiggy and TinyOwl.

While some have succeeded quite a bit, some even shut shop. In fact, rival Ola, too, tried and tested food
delivery with Ola Café in April 2015 but shut operations soon enough. Now Google Areo has also come into the
fray to help out companies like Faasos and Freshmenu, it remains to be seen if Uber survives in this competitive
market.

India is still a nascent market as compared to mature markets like UK where online delivery commands much
higher share of delivery orders.

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How home deliveries are changing the way we eat in

28 juillet 2016

Mumbai, July 28 -- It's 12.30pm on a weekday, and we're at Sindhful, a newly opened Sindhi food delivery
service based in a commercial complex in Khar. The phone lines are buzzing incessantly, and a steady flow of
delivery boys walk in and out of the kitchen holding cloth bags stuffed to the brim with neatly packed boxes.
The activity is only interrupted with beeps on several mobile phones. These are notifications for online orders
from services such as Zomato, Scootsy and Swiggy.

Finally, at around 2.30pm, the noise dies down as its six chefs take a quick chai break before preparations begin
for an equally busy evening. Sindhful's 26-year-old co-founder, Sannat Ahuja, has been on this crazy schedule
for the last two months, and has already started scouting for locations to set up another kitchen. "We're not
able to keep up with the demand," he says. This is true for many young (often first-time) entrepreneurs like
him. They are passionate about the food business, and are finding an economical business model in operating a
delivery-only service.

Need for good food

Mumbai may be plagued by skyrocketing real estate prices and lack of space, but these minuses have given rise
to an alternate dining-in option - new-age deliveries. The online food ordering business is estimated to be Rs
5,000 to Rs 6,000 crore in India, according to a report by India Brand Equity Foundation. This includes
aggregators (like Scootsy, Swiggy, Zomato and others), food ordering websites (like FreshMenu, HolaChef,
Box8) and delivery-only kitchens such as SpiceBox (for office lunches) and Calorie Care (for healthy meals).

"The ordering-in phenomena is picking up while going-out-to-eat might stagnate. This is due to changes in
lifestyle like lack of time and traffic on the streets," says Saurabh Saxena, founder-CEO of HolaChef, which
delivers home-cooked meals on demand.

It is true. Imagine having to put together a meal after a long, tiring day (especially after that mentally
exhausting sales meeting) versus getting fresh food delivered to your doorstep at the click of a button. A lot of
urban, 20-somethings are likely to pick the second option. And hyperlocal services like Scootsy, Swiggy, Zomato
and Food Panda are competing with each other to reach you fastest, offer the widest variety, and entice you
with attractive discounts.

To cater to its upmarket audience between South Mumbai to Andheri and Powai, Scootsy has over 400 riders
on motorbikes, whereas HolaChef has more than a hundred delivery boys who cover the length and breadth of
the city. Recently, HolaChef (which counts, among others, Ratan Tata as an investor) bagged $1.95 million (Rs
13 crore) in funding, an indicator that even serious investors are betting big on the food delivery business.

Focused menus

Apart from saving big money on rentals and wait staff for a traditional restaurant, delivery services can divert
resources towards a better food experience. Since the beginning of this year, we've seen services that
specialise in a certain cuisine (Bohri, Sindhi), a certain kind of dish (The Curry Brothers, who offer curry combos,

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Charcoal Biryani) and offerings for customers with special needs (tiffin service for diabetics). (See box for
details)

When popular TV show host and chef Saransh Goila was looking to set up his venture, Goila Butter Chicken,
having a takeaway- and a delivery-only business seemed the most natural choice. His signature dish - which
became popular as a social media phenomenon - is now accessible to more people.

"We decided to be delivery-only, because that way I could feed more people compared to what I could at a
restaurant. And food becomes the only focus, not the ambience," says Goila, who currently delivers between
Andheri and Juhu. Ahuja of Sindhful agrees: "A delivery-only model also lets you focus on things like packaging
(which becomes the face of your venture) and offering quality food consistently."

Restaurants join in

For established restaurants, too, food delivery is not limited to an add-on service. In a severely competitive
market like Mumbai (where demand is always higher than supply), restaurant owners have realised that their
customers value convenience over experience. "With shifting dining trends, people like to go out mostly to
grab a drink or eat and try a new cuisine. But they're happy ordering traditional or comfort food at home," adds
Goila.

Similarly, for time-strapped working professionals, getting a meal delivered to their desks is a quicker, and a
more efficient option. "Being in a location like Nariman Point, there is a lot of demand from offices in the area,"
says Farrokh Khambata of Cafe at the NCPA, which has tied up with Scootsy. Sit-down restaurants like Wok
Express (across locations) and the newly opened Ministry of Salads (Kemps Corner) receive an average of 150-
200 orders per day. Interestingly, on weekends (considered to be a busy time for restaurants), the number of
home deliveries doubles to 300 to 350 orders.

No more dining out?

Does this mean that the delivery model may eventually eat into the restaurant business? "The experience of
being served at a restaurant and the experience of dining out cannot be replicated, nor can it be replaced,"
insists Vaarun Dhingra of Oye Panjabi, a theme restaurant on the Mumbai-Nasik Highway. Yet, owing to
increasing demand in the city, Dhingra recently opened a delivery-only kitchen in Khar.

There are other disadvantages to the delivery-only model. The heavy dependence on logistics can cost you
customers. "No matter how good your food is, a delivery venture is bound to struggle if logistics are not taken
care of," says Goila. And in the age of instant gratification and quick service, consumer expectations are bound
to be high. "We also suffer from the fact that there is little face-to-face interaction with consumers," says
Saxena of HolaChef. Ultimately, though, whether you are ordering from the comfort of your home, or stepping
out for a meal at a fancy restaurant, only good food can satiate a hungry diner.

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Restaurants lure appy diners

20 juin 2016

New Delhi, June 20 -- Earn loyalty points, get lucrative offers, or take a virtual tour - city restaurateurs are
wowing diners with many more such schemes through apps that they've launched for their restaurants.

Apart from being featured in popular food portals like Zomato and Food Panda, direct digital connection
through apps is a win-win situation for everyone. "This is different from food-ordering apps. When we thought
of coming up with an app, the first mandate we set for our developer is to make the interface userfriendly.
Every visit entitles you to points equivalent to the total bill amount. Just scan the bill with the built-in scanner
to earn loyalty points. The app keeps you updated about upcoming events, F&B menu and notifies about the
gig of the day and comes with a builtin navigation system," says Joy Singh, co-owner, Raasta.

Some apps give discounts and cashbacks. "All our guests get a 5-15% cashback in their wallet and the points
can be redeemed at the restaurant or gifted to a friend. Users can also order through the app and we also have
app-only offers," says Deepankar Arora, chef and co-owner, Tawak.

Umang Tewari, who has a common app for all his restaurants, says they have to keep up with digital evolution.
"We use our phones for everything - from selecting where to go, checking out offers, etc. The Big Fish app,
which has Vault Cafe, Garam Dharam, Public Connection, Junkyard Cafe, Cafe OMG and Three Pegs Down,
provides seamless booking and payment experience," he says.

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