·     An example of this is the online on-demand food delivery service market which has significantly grown over the years. 

·     CAGR predicts this market will grow up to 32% from 2017 to 2021 as it is a fast-growing dynamic market. 

·     A significant market driver is it is convenient and easily accessible as with a touch and type of a button consumers can choose from a wide range of cuisines and be able to get it within a specific timeframe. 

 

This company acts as an intermediary between independent restaurants or takeaways and consumers. JustEat is then able to receive 13% commission from these restaurants and payment from customers as well as the direct delivery charge and 50p surcharge on card payments. 

·     In regards with JustEat it works with over 28,000 restaurants and takeaways as the demand for home delivered food is on the rise however due to short staffing it is not clear on the future long-term survival of these restaurants. 

·     The UK government currently have a list of shortage occupations which are consider in visa decisions which include chefs, however it only includes restaurant chefs not takeaway services. 

·     Furthermore, these laws will be further restricted since the UK will be leaving the EU.

·     Some would that if this is such as problem then these restaurants and takeaways need to invest further into training staff in order to provide more authentic and high-quality cuisine. 

·     Many argue that with this big move it will carry out significant costs to businesses and its consumers if the EU and UK do not create an agreement in regards to trading.  

·     This means that for JustEat this will affect them as it will mean that their partnerships with restaurants may weaken as these restaurant may find it difficult to survive in this environment as the costs will increase especially in procedures (importing new food) and strict trade requirements with additional tariffs to pay. 

·     This means leaving the single market costs predict to increase to £1.2billion in the food industry, it means that JustEat will need to find a solution in order to deal with this extra outflow such as increasing their commission or charges to customers. 

 

·     Additionally, migrants will look for jobs elsewhere as further requirements will be needed to work in the country and will face less job opportunities. 

·     This means that JustEat needs to be able to adapt and think of their future of how they will adapt in order to support their partnerships and continue to have a strong position in the market. 

The company has a successful history of expansion and implementing complimentary firms such as RestauranteWeb in Brazil through techniques like merges, joint ventures and acquisitions. 

 

This enabled them to gain a solid foundation in their markets through the world. In addition to that, they were able to incorporate even technological firms to restructure their operations and create a reliable and efficient supply chain. 

 

JustEat currently has a strong cash flow which means that if they want to continue growing as a business, they have the resources available to do so or even take upon new opportunities. For example, in their annual account report in 2017, it should a 72% increase in net operating cash flow. In addition to that, the company will have the capability to borrow money from banks and other sources. 

With JustEat the service lacks personal interaction between the takeaway company and consumer. This causes a lack of communication which can mean the consumers needs are not fulfilled as they may have a direct request from the food service however due to the use of JustEat it makes it difficult to do so. 

 

JustEat has recently been receiving negative publicity from the media. This includes the food being received as not being up to hygiene standards. This is the long-term ruins their reputation and brand image as well as reduce their customer loyalty. 

 

The Competition and Market Authority has allowed JustEat to acquire rival HungryHouse, a deal worth £240 million. HungryHouse is a weak competitor however it offers an expansion in the geographical area.

 

They have just announced the acquisition of Canadian firm SkipTheDishes. 

Analysing Porter five force the market suffers from the high threat of new entrants such as UberEATS and Deliveroo. The market has a rapid expansion of innovative suppliers showing high competitive rivalry (Porters five forces). Meaning JustEat needs to gain a unique selling point to get a competitive advantage.

UK, JustEat was sponsored by The X Factor, to help drive up our awareness levels to new highs.