Just Eat splurges £5m on Snoop Dogg as Covid delivers results
Orders to Just Eat grew by 58 per cent in Q4 2020, marking the third consecutive quarter of order growth acceleration.
Delivery orders in the UK grew by a whopping 387% in the fourth quarter of 2020 compared with the same period in 2019, as the UK again entered a national lockdown and coronavirus restrictions were made harsher.
The pandemic has served the takeaway delivery food market well, as coronavirus restrictions meant people turned to delivery apps to replace eating out in restaurants.
Just Eat’s share price fell 4 per cent today following the publication of the results.
Towards the end of 2020 Just Eat changed and put more emphasis on its marketing strategy, and doubled its UK sales force.
Part of its marketing strategy saw Snoop Dogg appear in the Just Eat advert. According to reports he was paid £5m for the appearance.
Just Eat CEO Jitse Groen said: “The fourth quarter of 2020 marks our third consecutive quarter of order growth acceleration. Our investment programme is very successful and has led to significant market share gains in most of our countries.
“The progress in the UK is particularly exciting; order growth of 58% and we have increased our Delivery Orders nearly five-fold in the fourth quarter of 2020 compared with the same period in 2019.”
For the full year 2020, management expects revenue growth of more than 50% with an adjusted EBITDA margin of approximately 10%.
The takeaway service agreed to buy Grubhub in June in an all-share deal that would make the combined group the biggest food delivery company outside China.