Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co

 
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Food Delivery Tech:
          Battle for the
       European Consumer

    Research by

data contribution from

                             March 2017
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
About Dealroom
 ■   Founded in 2013 in Amsterdam, Dealroom provides a 360° view on               Consolidating multiple data sources…
     Europe’s high-growth industries, tracking over 500,000 companies
     and 10,000 investors in Europe and beyond                                       12,000+ contributors        Automatic data feeds
                                                                                     (founders, VCs, analysts)   and web crawlers
 ■   Dealroom enables venture capital & private equity firms,
     corporates, consultants and investment banks to find growth
     opportunities, conduct market intelligence research, and stay ahead                                         Machine learning and
                                                                                     Manual curation &
     of developments                                                                                             natural language
                                                                                     research by Dealroom
                                                                                                                 processing
 ■   Data is sourced and consolidated from multiple sources, including:
     internal manual research; contributions from over 12,000 local
     market experts such as journalists, VCs and founders; automatic
     data feeds and crawlers; machine learning and natural language            … resulting in rich data-driven intelligence
     processing to organise data and spot below the radar companies

 ■   Dealroom membership is free

 Authors of this report:

 ■   Yoram Wijngaarde (yoram@dealroom.co)
     Founder & CEO at Dealroom
     Formerly M&A at Lehman Brothers and NOAH

 ■   Sara de Miguel (sara@dealroom.co)
     Data Analyst at Dealroom
     Carlos III University, Madrid

                                                                           2
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
About Priori Data
                                                                           Priori’s crawlers collect Public Data from App Stores...
 ■   Priori Data is a leading mobile market intelligence company
                                                                           APPS             PUBLISHERS        TOP CHARTS      COUNTRIES     LANGUAGES
 ■   Priori’s solutions provide customers with insights to help them
                                                                           4m+              1m+               35k+            57            35
     understand, benchmark, and track their mobile market share so
     that they can win their mobile markets

 ■   Priori enables app businesses, agencies, marketers, and analysts to
                                                                           ...which is combined with Confidential Data from partners
     benchmark performance against competitors, reveal competitor
     mobile strategy, discover new opportunities, and identify emerging    PARTNER             PARTNER                MONTHLY             MONTHLY
     trends in the app stores                                              APPS                PUBLISHERS             DOWNLOADS           REVENUE

 ■   The Company was founded in Berlin in 2013 by alumni of Morgan         20k+                1k+                    150m+               $50m+
     Stanley, Google, and the University of Cambridge

                                                                             Resulting in global, real-time Proprietary Data on apps
 Contributors to this report:

 ■   Patrick Kane (patrick@prioridata.com)                                                                                  Competitive Tracking
     Founder & CEO at Priori Data
     Vestar Capital Partners, Morgan Stanley, INSEAD
                                                                                                                            Market Trends
 ■   Simon Singharaj (simon@prioridata.com)
     Director of Marketing at Priori Data
     Jumia, Microsoft, EDHEC                                                                                                API
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Contents

1.   Introduction
2.   Food tech economics
3.   Consolidation wave
4.   Market size and market share
5.   Investment and exits
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Introduction
                    ▪   This report combines proprietary data from Dealroom and Priori Data with annual reports, investor presentations and equity research from
About this report       Just Eat, Takeaway.com and Rocket Internet. SimilarWeb data was used for online usage
                    ▪   By combining these data-points, a market model was constructed to estimate the size and market share of key European markets

                    ▪   Consumers are seeking convenience, resulting in a drive towards on-demand delivery and away from home-cooking
Eating habits       ▪   Supermarkets are most likely to lose in this trend. Prepared grocery models (HelloFresh) are gaining scale, but economically not validated yet
                    ▪   Majority of restaurants see trend as “a good thing for business” according to a recent UK survey by Morgan Stanley

                    ▪   Just Eat and Takeaway.com have so far benefitted the most from this trend, through asset-light software-only operations with 50%+ margins
Consolidation
                    ▪   Both outperformed: Just Eat’s share price more than doubled in 2 years since it’s IPO. Takeaway.com is up > 40% since their Oct ‘16 IPO
and IPOs            ▪   Their model requires #1 or #2 market position to be profitable. Result: a wave of consolidation, and still more M&A anticipated (France?)

                    ▪   Deliveroo, Uber EATS and Amazon entered the market and scaled rapidly with a model offering full-service logistics
Increased
                    ▪   This model involves more operating risk and requires enough population density (and higher order value) to work (Take Eat Easy failed)
competition         ▪   So far, these new models have not taken share from existing online marketplaces, but rather created a new premium market segment

                    ▪   Delivery Hero (38% Rocket owned) is likely getting ready to IPO. However, it is being challenged in some key markets by Takeaway (Germany,
                        Poland) and Just Eat (Italy). It absorbed loss making Food Panda but still lacks a clear cash-cow market position anywhere
                    ▪   Conceivable that Delivery Hero is instead acquired by someone like Priceline, Expedia, Recruit
Challenges          ▪   Deliveroo was hit with strikes after trying to convert its drivers to a pay-per-delivery wage
                    ▪   Uber lost some of its aura of invincibility. But now another powerhouse is also around the corner: Amazon
                    ▪   Fully integrated models with own kitchen have struggled to make economics work (Spoonrocket closed) but others (Sprig, Maple, Forky) are
                        working to get the economics right
                    ▪   Just Eat and Takeaway.com has so far enjoyed a rapid path to profitability (Takeaway.com built a €1 billion business in relatively small market)
                    ▪   There is still big upside, as online penetration of delivery and take-out is only about 15% in many parts of Europe (50% in UK and 30% in NL)
Outlook             ▪   The various models (Deliveroo vs. Just Eat) might soon converge: Just Eat is already starting to offer logistics services to restaurants to continue
                        expanding their footprint. Delivery Hero is heavily investing in the roll-out of Foodora, its full-service logistics brand
                    ▪   The last mile and waste reduction are key to further unlocking the potential: high hopes for autonomous delivery (e.g. Starship Technologies)

                                                                                5
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Eating habits are evolving. Convenience is the driver
                         Prepared                             Restaurant     Meal
Grocery Delivery                     Food Delivery                                       Agritech   Waste Reducing
                         Groceries                             Bookings    Substitutes
    Delivery & portal                      Own fleet

                                       Delivery software

  Online Supermarkets:

                                      Vertically integrated
            :

                                                              6
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Contents

1.   Introduction
2.   Food tech economics
3.   Consolidation wave
4.   Market size and market share
5.   Investment and exits
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Key considerations between the various models.
Operating risk ranging from low to very high
                                 Home cooking                                                                                                            No cooking

     Supermarkets                            Prepared groceries                                   Software only                                 Own fleet & logistics                             Vertically integrated

   Online supermarket eCommerce              Weekly boxes of around €50-100 / box        12-15% commission / restaurant does delivery                 30% commission + delivery fee                  Own kitchen and delivery logistics

              Positives:                                   Positives:                                     Positives:                                           Positives:                                       Positives:
            v Huge market                     v Nearly 1 million active subscribers      v Just Eat and Takeaway beating expectations            v Ability to advertise on packaging and on            v Entire GMV equals revenue
          v Migration online                       Avg € 750 revenue per sub                    v Autonomous delivery potential                                delivery vehicles                  v Domino’s UK has validated this business
    v High customer life-time value           v Starting to focus on profitability by    v New entrants (Deliveroo, Amazon, Uber are                 v Autonomous delivery potential                          model, at scale:
     v Revenues growing 15% YoY                     reducing marketing spend             targeting different premium segment, so far)            v Own kitchen to optimize fleet utilisation               10% revenue growth
         v EBITDA margin 7%                   (but: churn and LTV are undisclosed)        V EBITDA margin 50-60% in strong markets             v Model works best in dense + affluent areas                 25% EBITDA margin
                                                                                                                                                           v Positioned as premium

          Considerations:                              Considerations:                                 Considerations:                                      Considerations:                                 Considerations:
         x EBITDA-Capex negative             x Still EBITDA negative. Cost structure:     x Difficult economics in competitive and new       x Foodora is highly loss making for Delivery Hero,     x Operating risk: capacity utilization,
      x Cooking is losing its appeal                     Cost of goods 43%               markets as low as 100% (FoodPanda) or close to         but it continues to invest heavily in roll-out              minimal waste are key
x Prevailing wisdom in tech circles that              Fulfilment cost 35-40%                              0% (Germany)                               x Take Eat Easy closed operations                          x Spoonrocket
 this is a winner-takes-all logistics play    Marketing cost: 30% (discretionary)       x May need to soon invest in logistics to continue               x Dealing with rider strikes              x Less choice for consumer (one menu)
 that may well become dominated by                        Other opex: 3%                                    growth)                                       x Amazon moving in too
                 Amazon                                           =
                                                => Negative 15% EBITDA margin

          Market verdict:                              Market verdict:                                 Market verdict:                                      Market verdict:                                  Market verdict:
   - Market values Ocado at EBITDA           - Push to profitability, which will curb        - Strong performance of public players               - Strong VC backing of Deliveroo model             - Domino’s is valued 17-18x EBITDA
      multiples similar to Amazon                            growth                          - No clear sign of Delivery Hero IPO yet                                                               - VCs hesitant following SpoonRocket
        (17-18x 2017E EBITDA)

                                                                                                                          8
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Unit economics vary widely per model and
depending on market position and growth stage
                                                                               Prepared groceries                        Software only (Just Eat, Takeaway,     Own fleet (Deliveroo,    Fully integrated (Forky,
                                                                                  (HelloFresh)                                     Delivery Hero)                   Uber EATS)                 Sprig, Maple)
                                                                                                                                     Developed                   Lower      Affluent &
                                                                              Growth                                    Developing                   Market                              Developing   Developed
                    Per order:                                                               Steady state                           market, but                 density      densely
                                                                              phase                                       markets                  leadership                              market     leadership
                                                                                                                                    competitive                  areas      populated
                          Order value                                          € 75.0            € 75.0                   € 12.0        € 20.0      € 20.0       € 20.0       € 30.0       € 10.0       € 20.0
                                           (1)
                    x     Commission                                           100%              100%                      12%           12%         15%          30%          35%         100%         100%
                    =     Net revenue per order                                € 75.0            € 75.0                   € 1.4         € 2.4       € 3.0        € 6.0        € 10.5       € 10.0       € 20.0

                    -/- COGS                                                    45%               40%                       –            –            –           –             –          40%           30%
                    -/- Labour / packaging                                      35%               30%                       –            –            –           –             –          35%           30%
                    = Product margin per order                                 € 15.0            € 22.5                    € 1.4        € 2.4        € 3.0       € 6.0        € 10.5       € 2.5         € 8.0

                    -/- Delivery                                               (€ 1.5)           (€ 1.5)                     -            -            -         (€ 5.0)      (€ 4.0)      (€ 5.0)      (€ 3.0)
                    = Gross margin per order                                   € 13.5            € 21.0                    € 1.4        € 2.4        € 3.0        € 1.0        € 6.5       (€ 2.5)       € 5.0

                    -/- Marketing                                             (€ 25.0)           (€ 5.0)                  (€ 1.8)       (€ 1.5)     (€ 0.5)      (€ 2.5)      (€ 1.0)      (€ 2.5)      (€ 1.0)
                    -/- Other unit costs (2)                                   (€ 1.5)           (€ 1.5)                  (€ 1.0)       (€ 1.0)     (€ 1.0)      (€ 1.5)      (€ 1.5)      (€ 1.5)      (€ 1.5)
                    = EBITDA per unit                                         (€ 13.0)           € 14.5                   (€ 1.3)       (€ 0.1)      € 1.5       (€ 3.0)       € 4.0       (€ 6.5)       € 2.5

                                                                                                                                                    50%
                                                                                                                                                                              38%
                                                                                                19%                                                                                                       13%
                     % EBITDA margins:
                                                                                                                                        (4%)
                                                                               (17%)
                                                                                                                                                                  (50%)
Source: Dealroom estimates, annual reports, interviews. Delivery costs assume 2.5-3 rides per hour and €10/hour wage.                                                                        (65%)
1. Blended rate net of payment fees.                                                                                       (91%)
2. Estimate by Morgan Stanley, Dealroom (based on public peers).

                                                                                                                                    9
Food Delivery Tech: European Consumer - Battle for the - March 2017 - Blog | Dealroom.co
Profitability for meal kit delivery businesses:
potential path to profitability for HelloFresh

                                  Today actual                                                       Steady state (1)                                                            Today actual
    120%              Negative                                             General &
                                                                                                                                                                                    Gross profit
                     12% EBITDA
                                      Loss-making                         Admin costs:              Positive 9%                                                    Negative 10%      & net loss
                       margin              (5%)             5%             seem low                   EBITDA                                                       EBITDA margin
                                                                                                      margin      Profitable                                                            (10%)                         General &
                                           (7%)
    100%                                                                                                                                                                                                           Administrative
                     Run-rate        Negative                             Growth phase:                              9%                                            Run-rate                           28%
                                                           28%                                                                                                                                                   costs much higher.
                  revenues circa     7% gross                              higher than                                                                          revenues circa           17%                          Potentially
                                                                                                                     5%               5%
                     €1 billion       margin            Marketing          Blue Apron                                                                              $1 billion                                      includes quasi-
                                                                                                             Positive 7%                        HelloFresh
      80%                                                                                                                         15%                                               Positive                         direct costs.
                   1,250 active                                                                                 gross                        claims it can go     943 active                          14%
                                                                                                                                 Marketing     as low as 5%                        17% gross
                    customers                                                                Question is       margin                                             customers                         Marketing
                                                                           Higher than                                                                                              margin
                                                                                              how much
                   Avg. revenue                                            Blue Apron.                                                                           Avg. revenue
      60%                                                  37%                                 revenue
                  per customer                                              HelloFresh                                            30%         Blue Apron        per customer =
                                                                                            growth would                                                                                              29%
                  = circa €175 in                        Fulfilment        sees upside                                                           level           circa $250 in
                                                                                           be impacted by                       Fulfilment
                     Q2 2017                          (labor, delivery)                        reduced                                                             Q2 2017                          Fulfilment
      40%                                                                                     marketing
                  Both revenues                                                                 spend                                                           Revenues still
                  and customers                                                                                                                                  grew (only)
                    growing at                                            Cost of goods                                                                         18% YoY in Q2
                   healthy 53%                                             sold: in line
      20%                                                  41%                                                                    41%                                                                 39%
                       YoY                                                  with Blue                                                                            Number of
                                                          Cost of            Apron                                               Cost of                         customers                           Cost of
                                                          goods                                                                  goods                          declined from                        goods
                                                                                                                                                                 1,036 in Q1
         –
                    Income            Profit margin    Expenses                              Income           Profit margin    Expenses                           Income           Profit margin    Expenses
                                     As per 2017 H1                                 .               Illustrative Dealroom estimates                    .                           As per 2017 Q2

Source: Dealroom estimates, company reports.

                                                                                                                      10
Unit economics in food delivery: path to profitability
for Deliveroo (and Delivery Hero’s Foodora)
                                       Order-only platform model (2)                                                                             Integrated delivery model (3)

      Amounts per
        order

          € 12.0

                                                                                                                                                                                        € 10.5          38% profit
          € 10.0
                                                                                                                                                         € 9.0
                                                                                                                                    50% loss
                                                                                               Once market leadership
                                 91% loss margin                                                                                                         € 1.5
           € 8.0                                                                                is achieved, marketing
                                  before general                                                                                                         Other
                                                                                               costs drop significantly,
                                 expenses occurs                                                                                                                                                         € 6.5
                                                                                               and margins well above
                                   in some new                                                                                           € 6.0
                                                                                                   50% are the norm                                      € 2.5
           € 6.0                      markets
                                                                                                                                                       Marketing                      Avg. order €30     € 1.5
                                                                                                                                                                                    x 35% commission     Other
                                                                                                                                                                                                         € 1.0
           € 4.0                                                                                                                                                                                        Marketing
                                                                                                              50% profit
                              91% loss                                                       € 3.0
                                                 € 2.8                                                                                Avg. order €20               Delivery costs                                    Delivery costs
                                                                                                                                    x 30% commission                (€10/hour,                                        (€10/hour,
                                                                                                                                                         € 5.0
                                                 € 1.0            Other unit                                                                                        2 rides per                                      2.5 rides per
           € 2.0            € 1.4                 Other                                                          € 1.5                                                                                   € 4.0           hour)
                                                                   costs (1)              Avg. order €20                                                               hour)
                        Avg. order €12                                                  x 15% commission         € 1.0
                                                 € 1.8
                      x 12% commission         Marketing                                                         € 0.5
                 -
                          Income              Expenses                                      Income             Expenses                Income          Expenses                        Income          Expenses
                                 New markets                              .                        Market leadership            .             New markets                   .              Market leadership
Source: Dealroom estimates, company reports.
1. Other unit costs. Based on Just Eat reporting, via Equity Research.
2. Based on public reporting by Delivery Hero, Just Eat and Takeaway.com
3. Based on public reporting by Delivery Hero (Foodora), equity research and Dealroom estimates.

                                                                                                                           11
New entrants have so far expanded market adding
new (premium) segments, rather than challenging
                                                                                                                                                                                                                                                            Copenhagen
   HQ                                           London                       San Francisco                          Moscow                               Zurich                             Helsinki                            Athens

   Model                              Software + feel & logistics      Software + feel & logistics             Software + portal                  Software + portal                  Software + logistics                     Full service                     Recycle

   Funding (€M)                                 € 430M                            N/A                               € 10.9M                               N/A                              € 12.4M                              € 800K                          N/A

   Launch year                                    2012                            2014                                2011                               2008                                2014                                2014                           2015

   Monthly web users (1)                     7.5M (+90%)                      3M (+106%)                         2.4M (+85%)                             0.6 M                                55 K                              0.11M                           63K

   Cumulative app installs (1)         2.2M (+1,000% growth)                      1.3M                      5.7 M (+60% growth)                           N/A                               0.27 M                                N/A                           1M

                                          2,134 employees
   Other KPIs                         Annual Revenues: £ 130M                     N/A                            52 employees                             N/A                           85 employees                        22 employees                    62 employees
                                         Valuation £ 761M

                                                                         Europe: Amsterdam,
                                      Europe: Belgium, France,            Bordeaux, Brussels,
                                                                                                                                                                                                                                                     Europe: UK, Denmark,
                                       Germany, Italy, Ireland,         London, Lyon, Madrid,
   Countries                                                                                                         Russia                           Switzerland                 Estonia, Sweden, Finland                      Greece              Norway, Germany, France,
                                      Netherlands, UK, Spain (3)          Manchester, Milan,
                                                                                                                                                                                                                                                      Switzerland, Austria (5)
                                                                       Moscow, Paris, Stockholm,
                                                                          Vienna, Warsaw (4)

                                                                                                                                                                                                                                                    1 M app installs from zero
                                                                                                                                                                                                                                                      installs 12 months ago.
                                                                       1.3M app installs from zero                                            Partnership with Just Eat
                                                                         installs 12 months ago.                                                       (2011)
                                        #2 in UK, Netherlands,                                                                                                                                                       #2 in Greece after Delivery    Expansion to 7 countries in
   Traction                                                                                                       #1 in Russia                                                           #1 in Finland
                                         France after Just Eat                                                                                                                                                                  Hero                         2 years.
                                                                        Biggest growth in France                                                  #1 in Switzerland
                                                                                 and UK
                                                                                                                                                                                                                                                     #2 in Denmark after Just
                                                                                                                                                                                                                                                               Eat

Source: Dealroom estimates, press releases, SimilarWeb, Priori Data.
1. In Europe.        2. ROW: Australia, Hong Kong, Singapore, UAE.           3. ROW: United states, Canada, Colombia (Bogotá), Brazil (São Paulo), Australia, Thailand, UAE, Hong Kong, Singapore, Taiwan, Japan (Tokyo), South Africa.       4. RWO: USA

                                                                                                                                        12
Value is created in leadership markets, where the
earnings are generated
                                      Scale
                                         Countries                               15                     11                 40              1        6

                                         Restaurants                             62K                   29K               150K             35K      1K

           +                             Gross merchandise value (GMV)         € 3.4B                 € 1.2B            € 3.8B           € 3.6B   € 0.5B

                                         % average take-rate                    16%                    12%               13%              16%     100%

                                         Net revenues (2017E)                  € 545M                 € 147M            € 495M           € 579M   € 490M

                                      Market position
                                         Market leadership in            UK, Denmark, Italy        Netherlands      Sw eden, Finland      USA      UK

                                         Market leader EBITDA margin          50% (UK)                 60%             profitable

           +                             EBITDA margin in new markets
                                         Group EBITDA margin (2017E)
Contents

1.   Introduction
2.   Food tech economics
3.   Consolidation wave
4.   Market size and market share
5.   Investment and exits
Market leadership is key for profitability. Result:
consolidation and disposal of loss-making markets

HQ                                   London                                                 Berlin                                                 Berlin                                             Amsterdam

Selected
brands

               W. Europe: Sindelantal.com, Fillmybelly, Meal2go,          W. Europe: HungryHouse UK, EatNow UK
                Clickeat.it, Urbanbite, AlloResto, Orogo, Clicca e                                                            E. Europe: Delivery Club, Pauza.hr, Donesi.com,
                                                                        E. Europe: Foodarena.ch, Efood.gr, Damejidlo,
                Mangia, DeliveRex, Hellofood IT, Takeaway UK,                                                                                  Netpincer.hu.
                                                                      Jidloted, OnlinePizza Norden (OnlinePizza, Mat24,                                                          W. Europe: Thuisbezorgd.nl, Pizza.fr, Pizza.be, Rsto-in
                  Hungryhouse UK, La Nevera Roja, PizzaBo IT,             PizzaOnline, PizzaPortal, Mjam, WillEssen),       LatAm: PedidosYa, SeMeAntoja, Superantojo, Entrega     BE, TanteBep.nl, Pizza.pt, Just Eat BE & NL, food-
                                    Eatcity.ie.                           Lieferheld.de, Pizza.de, 9coockies, Foodora.          Delivery, Peixe Urbano, DeliYami, Janamesa.                            express.
Acquisitions    LatAm: ifood (JV), Sindelantal.mx, Hellofood MX &                         Foodpanda.
                                                                                                                                Middle East: 24h.ae, Hungerstation, EatOye.        E. Europe: Lieferando, Lieferservice.ch, Pyszne.pl,
                            BR, Foodpanda MX & BR                    LatAm: Hellofood LatAm, Click delivery, Subdelivery,                                                                    Lieferservice.de, Resto-in DE
                                                                                                                                      India: Tastykhana, Just Eat India.
               Canada & USA: Grubcanada, Yummyweb, Orderit.ca,                          PedidosYa.
                                                                                                                                                                                                  Asia: Vietnammm.
                                Skipthedishes.                                                                                  Asia: Singapore-Dine, Food Runner, Koziness,
                                                                           Middle East: Talabat.com, Yameksepeti.
                                                                                                                                              Delivery.com HK
                       Australia & New Zeland: MenuLog                                Asia: Baedaltong.

                                                                                                                                    E. Europe: Delivery Club (to Mail.ru)
                                                                           E. Europe: Hungryhouse UK (to Just Eat)
                   W. Europe: Just Eat BE & NL (to Takeaway)
                                                                                                                                  India: Foodpanda Indonesia closes down
                                                                      LatAm: Tastykhana, PedidosYa MX, SeMeAntoja,
                E. Europe: Online Pizza (Sweden, Minority stake)
Disposals                                                                      Superantojo (to Foodpanda)                         LatAm: Hello Food MX & BR (to Just Eat)             W.Europe: Takeaway.com UK (to Just Eat)
                        LatAm: Hellofood Brazil (to ifood)                                                                   Hellofood Argentina, Chile, Colombia, Ecuador and
                                                                        China: Waimai Chaoren (Chinnese subsidiary)
                                                                                                                                          Peru (to Delivery Hero)
                        India: Just Eat India (to Foodpanda)
                                                                                                                                 Asia: Foodpanda Vietnam (to Vietnammm)

                                                                                                                15
Consolidation wave started in 2014 and still ongoing.
France and Italy could be next
                                                                                                                                                     HelloFresh
                                                                                                                                                       €0.6B

                                                                                                                                                     Quandoo
                                                                                                                                                      €210M
      Just Eat
                                                                                                                                                     La Nevera                                                 Bookatable
                                                                                                                                                     Roja €80M                                                   €108M
      Delivery Hero
                                                                                                                                                                   Yemeksepeti                                                               Takeaway     Hungryhouse
                                                                                                                                                    iens.nl €10M                                Kochzauber      Foodinho
                                                                                                                                                                      €0.5B                                                                  €1.0B IPO      €240M
      Takeaway.com
                                                                                                                                                    SinDelantal     e-food.gr                                   La Nevera                  Just Eat BE/NL Delivery Club
                                                                                                                                                                                                 Spotistic
                                                                                                                                                       €4M            €12M                                         Roja                        €23M           €91M

                                                                                                                                                     DameJidlo       Volo.de                     Uncover         ES Food                   Foodist €4M    Mat.se €3M

                                                                                                       Just Eat €1.8B                                                Clicca e                                                              Takeaway.co      L'Epicier
                                                                                                                                                      Jidloted                                  Vinguiden      Gourmondo
                                                                                                             IPO                                                     Mangia                                                                   m UK           Toqué

                                                                                                       LaFourchette                                                               Linas Matk.     Wine &                                                     Restau-
                                                                                                                                                     restOpolis     Deliverex                                  Table-booker                 Quick Resto
                                                                                                          €127M                                                                      €30M       Cocktail Gd.                                               rantes.com

                                                                                                        Lieferando                                                                                                                                        Resto-In BE &
                                                                                                                                                      MyTable         Volo         Foodora       Resto-in        Pizzabo                    WirWinzer
                                                                                                           €50M                                                                                                                                                DE

                                                                                                                          Pizza.de
                                                                                                       Delivery Club                 Rocket €6.7B    Cookening     BestTables    Todovino.com    KochAbo       Food Express                  RetNemt      Vinocasting
                                                                                                                           €300M

                 Yemeksepeti                                        5CUPS and    Clickdelivery.                                      Restaurant-                                 Restaurantes                    MySwiss-                  Gold&Green
                                          Hungryhouse    Foodist                                       Lieferservice ClickDelivery                    Pizzabo       Delinero                     Todovino                     iqPOSitive                   Foodpanda
                    €40M                                            some sugar       gr €3M                                           Kritik.de                                      .com                       Chocolate                     Foods

 Q1     Q2            Q3         Q4           Q1           Q2           Q3            Q4          Q1        Q2              Q3           Q4             Q1             Q2            Q3             Q4             Q1            Q2            Q3             Q4
             2012                                               2013                                             2014                                                        2015                                                     2016

                           1. Assumption of majority stake by Rocket Internet.                                       16
Europe post consolidation: France and Italy remain
as crowded markets
                                                                            Uber EATS
                                                                     Amsterdam, Bordeaux,
        Dominantly #1 in UK, Italy, Spain, Portugal, Denmark         Brussels, London, Lyon,
                                                                    Madrid, Manchester, Milan,
        Also #1 France                                              Moscow, Paris, Stockholm,
                                                                         Vienna, Warsaw

        #1 in Germany (not dominant), Sweden, Finland
        #2 in Poland
        Present across Eastern Europe since FoodPanda
        acquisition in December 2016

        Present across Eastern Europe (and Asia and LatAm)
        Focus on emerging markets

        Dominantly #1 in Benelux and Poland
        Strong #2 in Germany

        Leader in premium segment
        Strong #2 in France

                                                               17
Contents

1.   Introduction
2.   Food tech economics
3.   Consolidation wave
4.   Market size and market share
5.   Investment and exits
UK is by far largest market. Massive growth potential
in Europe via online penetration and order frequency
        People ordering food                                      Market size (GMV)                          (1)                  Online penetration                          Online market (GMV)                   (1)

     Germany                                           56M               UK                                     € 7.2B              UK                               49.1%           UK                            € 3.5B

            UK                                  46M                Germany                          € 4.5B                 Netherlands                       32.7%             Germany           € 0.8B

        Russia                                 43M                   France                        € 4.3B                    Denmark                       27.4%                 France         € 0.6B       UK is by far the
        France                                                                                                                   Poland
                                                                                                                                                                                                             largest market,
                                        33M                            Spain               € 3.0B                                                     23.4%                  Netherlands       € 0.5B      thanks to high order
          Italy                       30M                               Italy             € 2.5B                                Belgium             19.1%                                                 frequency and online
                                                                                                                                                                                   Spain      € 0.4B
                                                                                                                                                                                                               penetration.
         Spain                    23M                            Netherlands        € 1.5B                                      Austria             19.0%                           Italy    € 0.2B
                                                                                                            Online
        Poland                  19M                                  Poland       € 1.2B                    Offline             Finland            17.3%                          Russia     € 0.2B

  Netherlands             10M                                         Russia      € 1.1B                                   Switzerland             17.0%                        Belgium     € 0.2B

      Belgium          6M                                            Austria     € 0.8B                                         Sweden             16.2%                         Austria    € 0.2B
                                                                                                     Vast majority of
                                       Total market                                                offline (80%+) (2) is
       Austria         6M                                           Belgium      € 0.8B                                      Germany              15.2%                        Denmark      € 0.2B
                                        (offline and                                               take-out collection
       Sweden         5M
                                         online) is                 Sweden       € 0.8B                                          Russia           13.5%                         Sweden      € 0.1B
                                      growing about
   Switzerland        4M               5% per year.              Switzerland    € 0.6B                                           France           13.4%                          Poland     € 0.1B

     Denmark         3M                                            Denmark      € 0.5B                                            Spain       11.9%                          Switzerland    € 0.1B

       Finland       3M                                              Norway     € 0.4B                                          Norway       10.8%                               Finland    € 0.1B

       Norway        3M                                              Finland    € 0.4B                                             Italy   5.3%                                  Norway     € 0.0B

Estimates based
1. GMV = Gross Market Value.
2. Dealroom estimate based on Morgan Stanley UK survey report.
                                                                                                                           19
Just Eat leads UK, Spain, Italy, Denmark. Takeaway
leads Benelux and Poland
                                                Just Eat      Delivery Hero           Takeaway.com                      Deliveroo         Uber EATS          Other

          UK                                                                                                                                   Domino’s, Pizza Hut, others                  € 3,538M

    Germany                                          € 784M

      France                               € 578M
                                                                                                                             Gross market value (GMV)
                                                                        Germany                                                                                                                        € 784M
  Netherlands                          € 491M
                                                                          France                                                                                             € 578M
        Spain                     € 357M                             Netherlands                                                                             € 491M

         Italy           € 182M                                            Spain                                                           € 357M
                                                                              Italy                                   € 182M                                      Takeaway.com has
       Russia        € 174M                                                                                                                                        built a €1 billion+
                                                                           Russia         Delivery Club              € 174M                                       business out of #1
                                                                                                                                                                     Netherlands
     Belgium         € 153M                                              Sweden                                    € 160M                                               position.

      Austria        € 152M                                              Belgium                                   € 153M
                                                                          Austria                              € 152M
    Denmark         € 150M
                                                                        Denmark                                € 150M
     Sweden         € 130M                                                Poland                            € 120M

      Poland       € 120M                                             Switzerland        Eat.ch           € 102M
                                                                          Finland          WOLT € 70M
  Switzerland      € 102M
                                                                         Norway              € 43M
      Finland      € 100M                                                         € 0M            € 100M            € 200M       € 300M    € 400M        € 500M         € 600M           € 700M    € 800M

      Norway     € 43M

                                                                                                      20
Takeaway and Delivery going head to head in
Germany. Just Eat maintaining growth in UK
                                             United Kingdom                                                                                                                                                             Germany
           2016 web visitors (SimilarWeb)                                 2016 app downloads (source: Priori Data)                                                 2016 web visitors (SimilarWeb)                                    2016 app downloads (source: Priori Data)

                                                                                                                                                          6M
    18 M
                                                Just Eat
                                                                                                                                                          5M
    15 M                                                                                                                                                                                                                                                                           Delivery Hero
                                                                                                                                                                                                             Delivery Hero
    12 M                                                                                                                                                  4M
                                                                                                                                                                                                             Takeaway
                                                                                                                                          Just Eat                                                                                                                                    Takeaway
     9M                                                                                                                                                   3M

     6M                                  Deliveroo                                                                                                        2M
                                                                                                                             Deliveroo (1.1 M)
     3M                                                                                                                      Uber Eats (0.4 M)            1M                                                                                                                    Deliveroo (0.1 M)
                                                                                                                                                                                                      Deliveroo (0.3 M)
                                                                                                                                                                                                                                                                                Uber Eats (0.02 M)
     0M                                                                                                                                                   0M
             Aug    Sept   Oct   Nov   Dec   Jan            Jan    Feb    Mar    Apr    May    Jun    Jul    Aug    Sep    Oct      Nov     Dec                   Aug    Sept    Oct   Nov     Dec    Jan             Jan    Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct    Nov    Dec

                                                     Netherlands                                                                                                                                                  Switzerland
           2016 web visitors (SimilarWeb)                                 2016 app downloads (source: Priori Data)                                                 2016 web visitors (SimilarWeb)                                    2016 app downloads (source: Priori Data)

     6M                                                                                                                                                   1.2 M

     5M                                                                                                                                                   1.0 M

     4M                                                                                                                                                   0.8 M
                                             Takeaway
     3M                                                                                                                                                   0.6 M                                              Eat.ch
                                                                                                                                      Takeaway
     2M
                                                                                                                                                          0.4 M
     1M                                                                                                                                                                                      Takeaway (0.06 M)
                                        Deliveroo (0.2 M)                                                                        Deliveroo (0.08 M)       0.2 M                                                                                                         Takeaway (0.05 M)
                                                                                                                                                                                             Delivery Hero (0.06 M)
                                                                                                                                                                                                                                                                        Delivery Hero (0.05 M)
     0M
              Aug   Sept   Oct   Nov   Dec    Jan            Jan    Feb    Mar    Apr    May    Jun    Jul    Aug    Sep    Oct      Nov      Dec         0.0 M
                                                                                                                                                                   Aug    Sept   Oct   Nov      Dec    Jan            Jan    Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov    Dec

                                                                                                                                                     21
France is crowded market, consolidation likely.
In Italy, Just Eat is doing very well
                                                         France                                                                                                                                                        Spain
        2016 web visitors (SimilarWeb)                              2016 app downloads (source: Priori Data)                                                   2016 web visitors (SimilarWeb)                                  2016 app downloads (source: Priori Data)

3.0 M
                                                                                                                                                       3.0 M
2.5 M
                                           Just Eat                                                                                                    2.5 M
                                                                                                                                                                                                      Just Eat
2.0 M
                                           Deliveroo                                                                                                   2.0 M
1.5 M
                                                                                                                                                       1.5 M                                         Telepizza
1.0 M                                                                                                                      Just Eat (0.9 M)                                                                                                                                  Telepizza (0.9 M)
                                                                                                         Takeaway (0.6 M) Deliveroo (0.5 M)            1.0 M
                           Delivery Hero (0.4 M)
0.5 M                                                                                                                     Uber Eats (0.4 M)                                               Deliveroo (0.5 M)
                                                                                                                          Delivery Hero (0.2 M)        0.5 M                                                                                                                     Just Eat (1 M)
0.0 M                                                                                                                                                                                                                                                  Deliveroo (0.2 M)
                                 Takeaway (0.1 M)
                                                                                                                                                       0.0 M
        Aug   Sept   Oct   Nov    Dec    Jan           Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov   Dec                                   Aug   Sept   Oct   Nov   Dec    Jan               Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep       Oct    Nov    Dec

                                                             Italy                                                                                                                                                     Greece
        2016 web visitors (SimilarWeb)                              2016 app downloads (source: Priori Data)                                                   2016 web visitors (SimilarWeb)                                  2016 app downloads (source: Priori Data)

                                                                                                                                                       3.0 M
                                                                                                                                                                                              Delivery Hero
                                                                                                                                                       2.5 M

                                                                                                                                                       2.0 M

                                                                                                                                                       1.5 M

                                                                                                                                                       1.0 M

                                                                                                                                                       0.5 M
                                                                                                                                                                                                 Forky (0.1 M)
                                                                                                                                                       0.0 M
                                                                                                                                                               Aug   Sept   Oct   Nov   Dec     Jan              Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep       Oct    Nov    Dec

                                                                                                                                                  22
Takeaway is outperforming in Poland. Mobile
penetration in Russia is growing fast
                                                               Russia                                                                                                                                Poland
          2016 web visitors (SimilarWeb)                               2016 app downloads (source: Priori Data)                                   2016 web visitors (SimilarWeb)                               2016 app downloads (source: Priori Data)

    6M                                                                                                               Delivery Club        6M

    5M                                                                                                                                    5M

    4M                                                                                                                                    4M                                     Takeaway

    3M                                                                                                                                    3M
                                               Delivery Club
    2M                                                                                                                                    2M
                                                                                                                                                                                  Delivery- Hero (1 M)                                                  Takeaway (0.70 M)
    1M                                                                                                                                    1M

    0M                                                                                                                                    0M                                                                                                           Delivery- Hero (0.32)
         Aug   Sept   Oct   Nov   Dec    Jan            Jan    Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct     Nov    Dec                Aug   Sept   Oct   Nov   Dec   Jan           Jan      Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct Nov Dec

                                               Czech Republic                                                                                                                                        Turkey
          2016 web visitors (SimilarWeb)                               2016 app downloads (source: Priori Data)                                   2016 web visitors (SimilarWeb)                               2016 app downloads (source: Priori Data)

    6M                                                                                                                                    18 M

    5M                                                                                                                                    17 M

    4M                                                                                                                                    16 M
                                                                                                                                                                                      Delivery- Hero
    3M                                                                                                                                    15 M

    2M                                  Delivery Hero                                                                                     14 M

    1M                                                                                                                                    13 M

    0M                                                                                                                                    12 M
         Aug   Sept   Oct   Nov   Dec   Jan             Jan    Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct     Nov    Dec                Aug   Sept   Oct   Nov   Dec   Jan            Jan     Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct    Nov    Dec

                                                                                                                                     23
Nordics so far less crowded. Growth in relatively
calm markets. Wolt is a strong local player
                                                          Norway                                                                                                                                Sweden
             2016 web visitors (SimilarWeb)                          2016 app downloads (source: Priori Data)                                    2016web visitors (SimilarWeb)                               2016 app downloads (source: Priori Data)

                                                                                                                                         2.4 M
    0.18 M
                                                                                                                                         2.0 M
    0.15 M
                                                                                                                                         1.6 M
    0.12 M                                    Just Eat
                                                                                                                       Just Eat          1.2 M
    0.09 M                                    Delivery Hero
                                                                                                                                                                                      Delivery Hero
                                                                                                                                         0.8 M
    0.06 M                                                                                                          Delivery Hero                                                                                                                           Delivery Hero
                                                                                                                                         0.4 M
    0.03 M
                                                                                                                       Uber Eats
                                                                                                                                         0.0 M
    0.00 M
                   Aug   Sept   Oct   Nov   Dec   Jan         Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct   Nov                    Aug   Sept   Oct   Nov   Dec   Jan            Jan    Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct    Nov   Dec

                                                          Finland                                                                                                                              Denmark
             2016 web visitors (SimilarWeb)                          2016 app downloads (source: Priori Data)                                    2016 web visitors (SimilarWeb)                              2016 app downloads (source: Priori Data)

                                                                                                                                         1.2 M

                                                                                                                                         1.0 M

                                                                                                                                         0.8 M
                                                                                                                                                                                  Just Eat
                                                                                                                                         0.6 M
                                                                                                                                                                                                                                                                Just Eat
                                                                                                                                         0.4 M
                                                                                                                                                                                Hungry.DK
                                                                                                                                         0.2 M

                                                                                                                                         0.0 M
                                                                                                                                                 Aug   Sept   Oct   Nov   Dec   Jan            Jan    Feb   Mar   Apr   May   Jun   Jul   Aug   Sep   Oct    Nov   Dec

                                                                                                                                    24
Contents

1.   Introduction
2.   Food tech economics
3.   Consolidation wave
4.   Market size and market share
5.   Investment and exits
Mega-rounds have slowed down due to focus on
profitability. But number of rounds is still increasing
         Annual food tech funding                                                                                                       Quarterly food tech funding

                                                                                                                                                                                  € 834M                                                                    49
                                                      € 1,391M           163                                                                                                                          € 814M

                                                                                                Amount raised (€M)
                                     € 1,222M
                                                      Delivery Hero                             Top 3 rounds (€M)
                                                        € 496M
                                                                                                                                                                                                                                                                     40
                                                                                                                                                                              Rocket Internet         Delivery Hero                                                                        38
                                    Rocket Internet                                             Total number of rounds                                                            €405M                   €496M
                                                                      € 1,048M                                                                                                                                                                                                   36
                                       € 405M
                                                                                                                                                                         35
                                                         109
                                         104                                                                                                                                                              30
                                                                        Jumia
                                                       HelloFresh      € 300M                                                                                                                                                                    28
                                                        € 130M                                                                                                                       27
                                                                                                                                                                                                                        26
                                                                                                                                                                                                                                    25
                                                      Food Panda                                                                                                24                                                                                        € 396M
                                    Delivery Hero       € 104M        Deliveroo
                                      € 318M
                                                                       € 250M                                                                                                                                                                                               € 351M
                        66                                                                                                                   20       20
                                                                                                                                                                              Delivery Hero     18
                                                                                             16                                                                                  €318M
                                                                                                                                                  Deliveroo                                                         € 256M                                 Jumia            Deliveroo
                                      Takeaway                        HelloFresh                                                 15                €91M                € 244M
                                       € 94M                           € 85M                                                                                                                           HelloFresh                                          €300M             €250M
        41                                                                                                                                                                                              €130M
                                                                                                                         11                                                                                           Delivery
                                                                                    10                                                                                 Takeaway                                        Hero      € 174M                                                 € 171M
    € 242M                                                                                                       9                                                       €94M                                         €100M                   € 146M
                                                                                           € 135M                                                             € 123M                                  Foodpanda                  HelloFresh                        € 130M               HelloFresh
Delivery Hero € 46M                                                                                      6                                                          Delivery                            €104M                      €77M
   Just Eat € 42M   € 144M                                                                 Just Eat                                   € 80M                                                                       Foodpanda
                                                                                                                                                                                                                                              Deliveroo
                                                                                                                                                                                                                                                                    Jumia
                                                                                                                                                                                                                                                                                          €85M
                                                                                                                                                      Delivery Hero Hero Foodpanda                                                             €91M
Delivery Hero € 25M Delivery Hero                                                           €46M                                                                     €77M                                           €91M                                            €75M      Jumia
                                                                                   € 46M              € 50M                                               €80M                                                              Deliveroo
                        € 27M                                                                                                  € 36MDelivery Hero€ 24M             HelloFresh
                                                                                                                                                                              €55M
                                                                                                                                                                                                                                   €64M
                                                                                                                                                                                                                                                                              €50M
                                                                                                  Delivery Hero € 12M                   €27M                                                  € 20M
                                                                                                      €46M
                                                                                                                        € 3M                                         €46M

      2012            2013              2014             2015          2016         Q1      Q2           Q3    Q4       Q1      Q2           Q3       Q4       Q1        Q2          Q3         Q4        Q1           Q2           Q3          Q4         Q1       Q2           Q3        Q4
                                                                                                  2012                                2013                                    2014                                           2015                                         2016

                                                                                                                               26
A large number of VCs are still heavily invested in
the Food Tech space
                              Investors                                                                          Selected top funded tech companies

                                                                                                         Delivery Hero                €2-4 billion valuation                         € 1,236M
                                                                 Fabrice Grinda, Oleg Tscheltzoff

                                                                                                              Deliveroo               € 431M                       Valued over $1 billion
                                                                                           Neil Rimer

                                                                                                             HelloFresh            € 353M                      Majority owned by Rocket.
                                                                                                                                                               Focus now on profitability
                                                                                   Thomas Griesel

                                                                                                             Foodpanda            € 293M            Folded into Delivery Hero at €500M
                                                                                                                                                                 valuation
     Kiren Tanna, Benjamin Bauer, Ralf Wenzel, Masoud Kamali, Ralf Wenzel, Masoud Kamali

                                                                                                               Velocity   € 35M
                              Shukri Shammas, Tom Glocer, DIG Investments, Alex Madonald

                                                                                                                 Vivino   € 33M

                                         Henrik Rosendahl, Janus Friis, Suranga Chandratillake

                                                                                                                Gousto    € 31M
                                                                                        Mark Evans

                                                                                                        27
Selected top VC-backed exits in FoodTech so far

   Company               Transaction                  Investors
                               £ 1.5B
      Just Eat
                                 IPO

                                € 1.B
     Takeaway
                                 IPO

                              $ 589M
   Yemeksepeti
                     acquisition by Delivery Hero

                              $ 140M
   LaFourchette
                      acquisition by TripAdvisor

                              € 210M
     Quandoo
                    acquisition by Recruit Holdings

                               € 80M
   La nevera roja
                        acquisition by just eat

                              € 108M
    Bookatable
                       acquisition by Michelin

                              $ 100M
   Delivery Club
                     acquisition by mail.ru group
More online resources
        Food Companies           Food Exits

      Food Funding Rounds        Food Map

                            29
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