Online food delivery company Just Eat has acquired Menulog for £445 million (about Rs. 4300 Crore), making its debut in the New Zealand and Australia market. Menulog, which has 5,500 restaurants on its portal and 1.4 million active users, claims to be the largest food delivery business in these two countries. This is the latest in a series of acquisitions. Just Eat, which held its initial public offering on the London Stock Exchange last month, is all set to enter new markets and give strong competition to GrubHub and Rocket Internet investments, FoodPanda and Delivery Hero, which are also aggressively focused on international expansion. In February, Just Eat bought SinDenlental.Mx to enter Mexico; previously, it expanded in Spain, France, and Canada through possessions.
The restaurant delivery market presents relatively low barriers to enter and hence a large list of companies have sprung up since Just Eat, one of the first meal ordering sites, was launched in 2001. Over the last year, however, the sector has begun to merge with Just Eat and its main rivals FoodPanda, Delivery Hero, and GrubHub snapping up smaller companies around the world.
Reports earlier this month had proclaimed Delivery Hero, which is based in Germany, as another potential suitor for Menulog, which made £13.5 million in revenue and £1.2 million of EBITDA in the fiscal year ended March 31.
Just three months ago, Menulog merged with rival EatNow in a bid to protect their market share from encroaching competition, but it looks like the combined company decided to take a more pacifying approach.
In a press statement, Menulog CEO Dan Katz said “I am very excited about the prospect of Menulog becoming part of Just Eat, which has been a real inspiration for us as we have grown in the Australian and New Zealand markets. This proposed acquisition will allow Menulog to benefit from Just Eat’s experience and know-how, particularly in digital marketing, and enhance our customer service model to drive further growth and efficiencies across the business.”