EXCLUSIVEDid somebody say… Christmas takeaway battle? How Just Eat, Deliveroo and Uber Eats are vying for customers by offering free delivery, dishes by Michelin star chefs and even sex toys ahead of festive season
The weeks before Christmas are always a busy period for families across Britain with shopping, parties and school nativities taking up plenty of time.
The weeks before Christmas are always a busy period for families across Britain with shopping, parties and school nativities taking up plenty of time.
So its no surprise that many people decide to order a takeaway to avoid having to cook, making the period a vital time of year for food delivery companies.
The big three players - Just Eat, Deliveroo and Uber Eats - are embroiled in a huge battle to get customers to order on their apps in a highly competitive market.
And the trio are employing a range of different tactics to entice spending, from brand partnerships with supermarkets to paid-for membership packages.
Deliveroo offers free delivery and other perks in its three-tier Plus scheme costing £3.49 a month for Silver, £7.99 for Gold and £19.99 for invite-only Diamond.
Uber Eats customers can benefit from free delivery via its Uber One scheme for £5.99 a month or £59.99 a year, which also gives discounts on Uber car trips.
And while Just Eat does not yet have a subscription model, it has launched a range of partnerships with retailers such as Lush, Boots, Cardfactory, HelloFresh, Waitrose and even sex toy and lingerie company Lovehoney in an attempt to boost revenue.
Here, MailOnline looks at what the three firms are doing to maximise custom:
JUST EAT
- New partnership with Waitrose including Christmas range
- Retail deals with Lush, Boots, Cardfactory and HelloFresh
- Now delivering sex toys and lingerie from Lovehoney
- Using AI technology to improve post-purchase adverts
- Group ordering for customers to create shared basket
While Just Eat is primarily a food delivery app, the business has focused in recent years on getting customers to use its service for other types of products.
Having expanded its retail partnerships with a series of major brands, people can now order from retailers such as Lush cosmetics, Cardfactory, HelloFresh and Boots.
Furthermore, MailOnline can also reveal today that Just Eat has launched an exclusive partnership with audio and technology retailer Richer Sounds.
This will make a range of electronics available for delivery in 30 minutes or less – including emergency purchases such as phone chargers, cables, headphones and Bluetooth speakers; as well as items such as projectors, turntables and speakers.
Just Eat also recently began a tie-up with Waitrose, adding its products for people in London, Birmingham, Glasgow, Manchester and other cities, in a multi-year deal.
Waitrose saw weekly on-demand grocery sales surge by 140 per cent in the first six months of the year, following similar partnerships with Deliveroo and Uber Eats.
Just Eat operates in 19 countries including Britain and the US through its local brands
And the supermarket hopes its partnership Just Eat will help boost this further, with Waitroses premium range of Duchy Organic products among those available.
Just Eat has been branching out from its core offering of delivering takeaway meals for years, saying that its own research has found three in four people who have ordered on-demand groceries believe this will become a part of their daily lives.
The company claims to have more than one million regular customers in the UK, and that it delivered 12 grocery orders to peoples doors every minute last year.
Unlike Uber Eats and Deliveroo, Just Eat does not have a membership model in the UK, although it has rolled out subscription models in some other countries.
MailOnline understands that there are plans to introduce a similar scheme in Britain in due course, and the firm most recently launched such a model in Canada.
In September, it announced a UK partnership with sex toy company Lovehoney, so customers can get vibrators and lingerie sent to their doorstep in minutes.
Just Eat said at the time that it would deliver sexual wellbeing products and accessories from brands including Womanizer, We-Vibe and Fifty Shades of Grey.
The delivery company said the products will be delivered inside sealed, unbranded paper bags, with receipts attached on the inside to ensure discretion.
Just Eat has also instructed riders not to leave the sex toy deliveries at peoples doorsteps, with orders returned to stores if customers are not contactable.
The Just Eat third quarter trading update issued on October 16 included this table showing gross transaction value (GTV) in millions of euros, and total order figures for regions
Just Eat has cut costs through measures such as leaving less profitable markets and trying to use artificial intelligence to reduce the workload at its call centres.
Last month, the company partnered with e-commerce firm Rokt to use its AI technology to improve post-purchase adverts on its apps and websites.
Under the deal, advertisers in the Rokt Ads network will be able to show targeted messages to customers while they confirm or track orders on Just Eat platforms.
Just Eat has also introduced an in-car ordering system for customers of certain Mercedes-Benz cars in the UK, which is now being rolled out to other countries.
And the delivery firm has brought out a group ordering feature which allows customers to create a shared basket and invite friends and family to add items, make edits, with the order initiator having full visibility before checking out and paying.
On Wednesday, MailOnline revealed Just Eat was making 300 staff redundant across its global business - equivalent to 2 per cent of the companys workforce.
The Amsterdam-based firm confirmed the cuts after results last month revealed tough trading in the US had offset a better performance in the UK and Europe.
The job losses were made in 11 of its regions worldwide and across staff in customer service, products, technology, human resources, sales, marketing and logistics.
Just Eat said the reduction in workers was a tough decision but a necessary step to ensure it can fuel sustainable growth and enhance operational efficiencies.
Just Eat - officially called Just Eat Takeaway.com - is based in the building in Amsterdam
MailOnline also understands the firm has given redundant staff enhanced severance packages and access to career transition services and wellbeing resources.
Just Eat operates in 19 countries, including Britain, the US and Germany through its local brands and has an estimated 82million customers worldwide.
In its most recent results on October 16, Just Eat posted a 3 per cent drop in sales, as measured by gross transaction value (GTV), to €6.3billion (£5.3billion) in the three months to September.
In the UK and Ireland, GTV lifted 6 per cent to €1.8billion (£1.5 billion) and was 4 per cent higher across northern Europe, or 4 per cent and 3 per cent higher on a constant currency basis respectively.
But a 12 per cent tumble in the US market - where it is still trying to offload its Grubhub business, bought for £5.75billion in 2021 - dragged down the wider group result.
Just Eat said at the time that it saw a better performance across the group towards the end of the third quarter after a slower July.
It also delivered fewer orders through its platforms in the third quarter, down 1 per cent in the UK and Ireland at 60.1million, with a 6 per cent drop across the group to 211.1million after the US woes.
The third quarter performance marked a pull back after the companys best UK trading for three years in the first half thanks partly to higher food price inflation.
DELIVEROO
- Deliveroo Plus paid membership for free delivery
- Invite-only Diamond category for top customers
- Personalised gifts deal with Not On The High Street
- The Perfume Shop tie-up to expand shopping range
- Now Just Got Even Better ads for loyalty scheme
MEMBERSHIP
- DELIVEROO PLUS SILVER: £3.49/month - free delivery on orders over £15 from restaurants and £25 from stores; exclusive offers and rewards
- DELIVEROO PLUS GOLD: £7.99/month - free delivery on orders over £10 from restaurants and £15 from stores; claim £5 back as credit if an order arrives later than expected; and discounted service fees
- DELIVEROO PLUS DIAMOND: £19.99/month - invite-only scheme; free priority delivery on all eligible orders; invite-only events; full order value back as credit if it arrives more than 10 minutes late; premium customer care line
Deliveroo launched its loyalty membership programme back in 2017, initially offering just free delivery – but has significantly expanded the scheme in recent months.
It now offers a three-tier system, with the bottom Silver level of £3.49 per month offering free delivery on orders over £15 from restaurants and £25 from stores.
Those going for the middle tier of Gold pay £7.99 a month to get free delivery on orders over £10 from restaurants and £15 from stores, and can also get £5 back as credit if an order arrives later than expected – as well as discounted service fees.
Earlier this year, it also launched a new top tier of Diamond at £19.99 a month which is an invite-only scheme giving free priority delivery on all eligible orders.
Some of the products which have been available on the Deliveroo Plus Diamond scheme
This tier also provides customers with invite-only events, a premium customer care line and their full order value back as credit if it arrives more than ten minutes late.
Deliveroo is aiming to be a Plus-first business, so the majority of orders are carried out by Plus subscribers - a figure that currently stands at 40 per cent globally.
The London-based company is pushing this approach amid its own data that shows Plus customers spend three times more than non-Plus customers, and bosses are hoping for the majority of its revenue to be generated by subscribers by 2026.
The firms Now Just Got Even Better adverts launched in September, with the first campaign developed with agency Pablo London focusing on its loyalty programme.
Another aspect it is working on is grocery delivery, which currently makes up around 14 per cent of gross transaction volume (GTV) for the firm.
Deliveroo also has a big drive on expanding retail partnerships, with a deal in place with Wilko
It has also found that most restaurant users have not tried grocery delivery, but once someone who does use the restaurants uses groceries, they tend to do it again.
There is also a big drive on expanding retail partnerships, with deals already in place with Screwfix, B&Q and Wilko and more set to be announced before Christmas.
Similarly to Just Eats Lovehoney deal, Deliveroo also partnered with Ann Summers this year to deliver its lingerie and adult products to peoples homes in minutes.
In addition, Deliveroo brought in a new value programme last year to give restaurants with lower markups and better service a better profile on the app.
The aim is to help increase sales for restaurants providing the best value and driving the trust of customers, with algorithms providing tailored deals in the app.
Deliveroo is a huge competitor to Just Eat, with the other big market player being Uber Eats
Deliveroo has also been working on partnerships with non-food companies to try to expand its offering, and signed a deal with Not On The High Street in September.
This exclusive tie-up means people in London can buy personalised gifts on-demand in as little as 25 minutes from at least 15 independent small brands.
More than 1,000 products are available on the app, from jewellery and homeware accessories to toys and games – with personalised jewellery among the offerings.
The company has also partnered with The Perfume Shop to deliver perfume and cosmetic products to customers in major cities, also in as little as 25 minutes.
Deliveroos latest results on October 17 revealed a rise in orders for the most recent quarter, amid healthy growth in the UK and Ireland. The firm told shareholders it had made progress in a more stable but still uncertain consumer environment.
Deliveroos latest results on October 17 revealed a rise in orders for the most recent quarter
It said adjusted earnings for the full year were on track to be in the upper half of its £110million to £130million range as a result.
Deliveroo also revealed that GTV grew by 5 per cent to £1.78 billion for the quarter to September, while order numbers grew by 2 per cent to 71.1million for the period.
In the UK and Ireland, the largest part of the firm, GTV jumped by 7 per cent and orders increased by 2 per cent to 39.5million, as customers spent more per order.
Deliveroo also said at the time that it had achieved the twin milestones of positive net profit and free cash flow – with shares rising 9 per cent on the news.
UBER EATS
- Uber One membership offering free delivery
- Partners with Michelin-star chef Simon Rogan
- Couriers now pick and pack supermarket orders
- Co-op launches in-app member prices on Uber
- Exclusive deal with Morrisons stores expanded
MEMBERSHIP
- UBER ONE: £5.99/month or £59.99/year - free delivery on eligible food and groceries; 5% off deliveries and pick-up orders; 5-10% off Uber car trips; £5 credit if latest arrival estimate on an order is off; cancel without penalties
Like Deliveroo, Uber Eats customers can also pay for a membership - although it only has a single tier Uber One scheme, costing £5.99 a month or £59.99 a year.
This provides free delivery on eligible food and groceries and 5 per cent off eligible orders, as well as £5 credit if its latest arrival estimate on an order is off.
The scheme also stretches to Ubers car ride business, offering 5 to 10 per cent off eligible trips and allowing customers to cancel without fees or penalties.
While the price is above Deliveroos £3.49 tier, Uber claims it could save people £19 a month based on average savings of UK members from promos and member pricing.
Uber Eats is also partnering with a series of supermarkets including Morrisons and the Co-op to try to get customers ordering their groceries on-demand.
Uber Eats has revealed that in the past two years, the number of people who have placed a grocery order on the app in the UK has nearly doubled
In February, Co-op launched in-app member-price deals for its five million member-owners on Uber Eats, which can save them money on about 250 products.
This was described at the time as a first for a UK delivery platform, and an extension of the partnership between Uber Eats and Co-op which launched in August 2022.
The firm also expanded its partnership with Morrisons in October to add more than 400 supermarkets to the Uber platform, including tens of thousands of items.
The deal already included Morrisons Daily convenience stores, and Uber Eats claims the average delivery time for customers in the UK was less than 30 minutes.
The firm has also revealed that in the past two years, the number of people who have placed a grocery order on Uber Eats in the UK had nearly doubled.
Uber Eats said in June that grocery shopping trends now see consumers carry out fewer big shops at the supermarket and lean more on convenience apps.
It brought in a series of changes to change the way that people shop for groceries - including that couriers are now starting to pick and pack orders from supermarkets.
The idea is that Ubers couriers do the shopping in store on behalf of the customer, and then that same courier delivers it to the customer once they have finished.
Uber Eats launched a partnership in autumn with its first three Michelin-star chef, Simon Rogan, who devised an £80 menu with ingredients grown on his farm
Uber has also built a courier app to help them find items and suggest replacements for anything out of stock, before paying with a pre-authorised payment method.
It has also launched aisle indexing to speed up the process, which lets couriers know the exact aisle and shelf numbers of the products they are searching for.
And the firm has rolled out in-app grocery tips, as well as smart item verification to tell the courier whether or not they have picked up the correct grocery item.
The company also encourages restaurant and grocery store managers to attract new customers and retain existing ones, by offering special deals and discounts.
These include deals on specific products such as buy one get one free, percentage off item or category, and free item with minimum basket size.
There are also whole basket offers available which include percentage off basket, money off basket and a £0 delivery fee with minimum basket size.
Uber Eats advises businesses that they can combine any offers on the item level with any offer on the basket level, running more than one offer simultaneously.
Separately, it launched a partnership in autumn with its first three Michelin-star chef, Simon Rogan, who devised an £80 menu with ingredients grown on his farm.
The exclusive menu consisted of five courses, with the main course being a heritage breed beef short rib served with fermented cabbage, chanterelles and beef sauce.
In February, Co-op launched in-app member-price deals for its member-owners on Uber Eats
Mr Rogan and his team cooked the menu for Uber Eats customers in London in September between 5 to 10pm, with pairing wines available for an extra £30.
Industry expert Trish Caddy, associate director for Foodservice at Mintel, said data in February showed 80 per cent of Britons were still buying deliveries and takeaways.
But she also pointed out that the proportion ordering once a week or more had dipped four percentage points between November 2021 and February 2024.
Ms Caddy said this suggested that deliveries and takeaways are becoming more of an occasional treat than the pandemic necessity they once were.
She continued: Savvy operators are catering to this evolving landscape. Streamlining operations and boosting the accessibility of foodservice delivery and takeaway options have been key.
This has involved expanding drive-throughs or placing mobile kiosks in high footfall locations like travel hubs and shopping centres to cater to the desire for more accessible takeaway ordering methods.
While participation in food service delivery and takeaway remains strong, long-term success hinges on moving beyond basic needs. Customisation can play a key role here, with consumers keen to receive personalised recommendations based on past orders.
This would not only entice tech-savvy customers to download apps with this feature, but can also help brands to build a loyal customer base through remembering their preferences.
