So, I have to point out, David and Greta and I just talked and we want to give William
an award.
You can tell that global warming is real, you're the first person who's ever presented
in shorts.
You know, I am suffering from gout, that's the only reason I'm wearing shorts.
Too much information.
Not at all, I've been using my service too much.
Yeah, well that's okay, you're your own best customer.
But just so you know, thank you for the award, that's very impressive.
So this is a really interesting thing, I'm going to step off the stage because I want
to talk to them in a conversational way, so pardon me having my back to the audience.
This is a really interesting group of people.
We've got market leaders in many ways and still a young upstart.
Competitive market has changed dramatically in the last couple of years.
We saw it in each of your presentations.
You are all start-ups, entrepreneurs, visionaries, you've grown up with a company that basically
changed delivery worldwide.
How do you see the competitive market?
Who do you compete with?
Do you compete with each other?
Do you compete with him as a guy who delivers on his own?
Are you technology-looking, watching the new technology companies coming up behind you?
How do you see your competitive landscape?
Yeah, maybe I'll go.
So I think the way we see competition at Just Eat is the way we think about it is from a
customer and restaurant perspective.
So if you think about it, of course everyone on this platform is competing with each other.
I mean, you're in the same business and in the end you want customers to choose your
platform, not someone else's, right, that's just a fact of life.
But at the same time, all of us are also benefiting from each other's businesses, I think.
The deck that actually illustrated very clearly that this is a lifting tide globally for sure
and everyone on this table, I think you call that perfectly, that we're all helping to
say, for example, in the end, build dominoes as well, right, in an indirect way because
we're all helping to lift the category.
So I think that's the second point to make.
So it's not at the margin, maybe there's some overlap, but the truth is, we love to
look at the data every day.
The truth is, these business models are absolutely complementary and it's helping to drive that
consumer shift globally.
I think the one elephant in the room that nobody in our space, I'm sure, well, I'm
certainly not, I'm sure Will's not, I'm sure the guy's not, is Uber, right, because if
I think about who's the company I respect at the global level, who's world-class executing
that's going to come into food, nobody has come into food in a massive way in London
and other cities, it's Uber, right.
So I think we're all going to have to be, there's certainly no room for complacency the
next five, 10 years because if you are, you're going to get killed, right.
So that's an important thing to say.
Yeah, so Uber.
Well, I think it's a very exciting time.
Because you're the upstart, you're the guy, I'm going to get in the water for your wife.
I think it's a very exciting time for everybody in this space and I think we're seeing what
I believe is that it's not just about one winner takes all, I actually think there could
be several winners.
I think the market is still so early, I think in five to ten years time we could be looking
at all of these companies being much, much bigger than they are.
We're seeing it becoming just a normal part of consumers' lives that they'll click something
to order food.
It's just becoming so normal, the idea of eating at home, the idea of ordering online.
I think it's very early still, I think companies like Uber are going to have a massive, massive
impact.
I've seen in the last two years so much money going into technology companies that are trying
to compete against the bigger players.
But actually many of them have gone out of business, even in the last few months some
good friends of mine who've raised millions have actually gone out of business because
they weren't able to keep their union economics working.
So I think you will see consolidation but at the same time I still think there's a huge,
huge market where everybody on the stage has lots of opportunity to grow.
I'm going to jump off on that without continuing that line of questions.
The amount of money you raised is astronomical, just for any business in such a short period
of time.
But hearing you have 50 data scientists working all the time.
You writing your own AI software program, you changing and moving into 110 markets.
It's clear that this business that seems so simple is actually hugely capital intensive.
And how does that change the conversation for the next generation of upstarts?
Have we moved to a mature cycle in the delivery market already?
Yeah, I think we've hit an inflection point as David pointed out where some of these smaller
players have gone away, some of your friends start-ups have failed and you're starting
to see competition from the biggest e-commerce company as well as the best funded start-up
of all time and I'd be lying if I told you I didn't think about that stuff.
I think this business though, and as David pointed out, we all compete against each other,
but the market is really that big.
It's a point of evidence.
I think David talked about Uber coming into London.
They've been in London for about three months now.
Our sales in London in September are 35% higher than they were in August.
So there's a little bit of seasonality to that, but it's still, and that's how we measure
our businesses is week on week growth, month on month growth, not annual.
And so I think we're still seeing that.
I think that the market is really big.
I think it will be harder for smaller players to raise capital, and this is a capital-intensive
game not necessarily because it has to be.
It's because guys like Uber and Amazon have changed the rules of the game.
And so if you look at a company like Uber, you wouldn't think fundraising is a primary
activity set of a company.
That just isn't a strategic sort of thing you do, but they've made it one.
And so the sort of winner takes all mentality, and the capital you need to place behind that
is real, and it's apparent.
And although, like I said, I think there's room for a lot of different players, that's
what's fueling a lot of this sort of capital raise.
We don't reveal our numbers, but we are, by all metrics, a very large company now.
And we've grown really quickly.
That did require capital, no question about it.
And I think I'll be excited to see where some of the money, and the funding for food delivery
startups is pretty much dried up, except for a few players.
And we're lucky to be one of them, but I think I'll be interested to see where the money
goes next, what kind of format that goes into.
You use capital to buy your market share.
Yeah.
And we're a little bit different in that still 90% of our business are mums and dads.
Whilst they started as delivery drivers, they grew up through the business.
It's almost a form of crowdfunding because these guys are putting their own money into
the business.
And I think the one DNA that we have is that we're a business full of entrepreneurs who
every day go to work to figure out how they can sell another pizza and do it better.
And that's what's made the whole dominoes and even McDonald's, et cetera, successful
is because you've got all these entrepreneurs working for you.
So it's a little bit different than this scenario.
And also, we've got the whole vertical integration.
We're making the product, then we're delivering the product, so we can control end to end
a little bit differently than these guys have got.
But for me, competition's good.
Competition's always made us stronger.
When I started the pizza business, we had 660 stores.
Pizza had had 427 in Australia.
And now they're in the 200s and we're in the 600s.
So competition's a good thing.
I'm going to ask you, one of the things that makes you each different is the way that you
look at the pricing model.
You addressed it a little bit.
You've got your price embedded in the pizza.
You guys are competing against basically what's the perception of free delivery.
How do you, if you were to do it again, would you have the same pricing model or would you
try to figure out a way to change it?
What's your sense on the pricing and competition?
Who's going to jump in there?
Go ahead.
Well, the way I think about pricing is that you have to go back to first principles with
it.
So when I was at Coke as a graduate trainee, the one thing they drummed into us every day
was value proposition.
So why should any retail outlet choose our product over another product?
So I think that stayed with me, right?
So when I think about just eat, I think about, say, for example, in the UK, we're charging
13% commission rates to a restaurant that already has the delivery.
In that scenario, we are absolutely paranoid, I think rightly, about demonstrating that restaurant
value.
We find it things like an average order uplift of 15, 20%, just by coming onto our platform
because of the way we structure their menu and stuff.
On top of that, we're starting to buy for restaurants now.
So if you're a partner of just eat globally or even in the UK or in any market, we're
doing major deals with wholesalers, with card processing companies.
So on average, I'll give you an example.
So in the UK, a restaurant will be paying a just eat partner restaurant paying 2% roughly
to a card processing company.
Well, now you can get it less than 1% because we wouldn't have done a deal when the world's
biggest providers.
So I think you've got to go right back to the value proposition.
The thing that I am super respectful of is the point I think was made on the restaurant's
brand because all of us hugely benefit from the people in this room that build amazing
restaurant brands locally because in the end, it's a truth and it's a global truth that
restaurants are incredibly loyal to brands.
So you've definitely got to think about your value proposition, about what you bring because
you're definitely also taking.
So I think for us, we're in a unique place in terms of pricing, that we definitely charge
more than any of the other services.
We actually charge a significant delivery fee.
It could be from £2 all the way up to £10.
And you'd be amazed, customers are willing to pay £10, as David said, for their favorite
brands.
People care so much about their brand, they'd pay £10 for us to go and deliver something
just for the delivery fee.
I think we've been able to do that because...
We've got so much customers.
Yeah.
So we've got some great customers.
Yeah.
That's the first thing.
We've catered our service towards a market, you know, not the biggest market, but a market
where customers don't see cost as a barrier or they're less price sensitive when it comes
to getting what they want.
They value convenience over their time.
They value convenience and pricing over getting the brand that they want.
So we've been able to uniquely position ourselves, going for that top end of the market, getting
high net worths or affluent customers who are time poor, who are willing to pay that
higher delivery fee.
And I think it's given us that unique ability to go to restaurants where you can't usually
get a partnership with or to retailers where it would take huge amounts of integration
to try and get a partnership with.
So that's put us in that unique position.
But at the same time, the flip side of the coin is it means our market would always be
slightly smaller than having something where you, for example, you could go all the way
to having free delivery, which I think is the ideal, actually.
So you're in the luxury brand business.
You're in the service provision business.
You're in the production business and trying to speed the time structure.
And you're in the business of delivering a whole bunch of things, and you're trying
to bridge the gap by putting in these new row boxes.
How do you see that as a competitive advantage over what they're doing?
Well, I think about it like this.
I think about it in two ways, right?
Two companies we admire a lot are Amazon and Netflix.
If you think about Amazon versus eBay back in 2004, people were like, wow, eBay, like
this is an asset-like model.
Why would you build?
Why would Amazon?
Why do you build these warehouses?
What is the point of you spending all this money?
And that was a good question at the time, and since then, you should look at the divergent
movements of the stock prices, right?
But clearly, someone was thinking about the customer and how they would make the customer's
life easier, and the vendor or the customer, right?
And so for us, it's really about how do we help restaurant solve the hardest problems,
right?
We're helping them solve communication, helping them solve delivery, but then if we can help
restaurants expand in a really quick way in a very low capex manner, I think we're doing
that job.
I think the other thing about Netflix, the way we think about Netflix is this as well.
So Netflix had this big competitive advantage over time and on the distribution side.
And when distribution became cheaper and cheaper, other players were willing to pay more for
media rights, right?
And so Netflix was like, oh, shit, what do we do?
Well, they started actually in partnership creating their own content.
So you would have a unique content on your marketplace coexisting along third-party content.
And I think they've done an incredible job of that, and so if they have the captive audience
and the patterns of demand that David talked about, I'm not saying every show is amazing,
but they know exactly what people want to see, right?
And so we want to work with restaurants.
We have that data.
So we want to work with restaurants and build brands or expand people's brands and areas
in which we know there's demand in which we know that they would make a lot of money.
And so, again, it all comes back to the customer, right?
Price selection service.
And on those levels, are you going to get a cheaper product via Rubox?
Maybe.
It's a different margin structure.
Are you going to get better selection?
Yes.
It's unique.
Is the service level going to be better?
Yes, because we don't have a front-of-house to deal with, and you can cut out minutes
out of the customer experience time.
So that's kind of how we think about it.
Yeah.
The Netflix model is really interesting.
I'm going to open up some questions.
I've got right to you, Andreas.
And then we'll get back to you.
Couple of questions.
Yeah, quick.
Go ahead.
Do you buy your own vehicles?
Yeah.
Yeah, wait.
Hang on just a minute.
We're going to get your mic.
Can I use this one?
Okay.
Couple of questions.
Do you buy your own vehicles, and in such case, is it basically bikes, except for
Domino's, I think, that you get the guys with the vehicles already?
And how much of the business is cash, and in the case of Henchman, what happens if the
product that the guy asked you to buy in Harrods or whatever is not the one you want, how
you solve that?
Thanks.
Yeah, good.
I'll start then.
So actually, 95% of our drivers are on motorcycles or bicycles, and it's all of them pretty much
their own vehicle.
We're looking into doing larger deliveries with vans, which we may lease or own.
So the majority of the drivers are on bicycles or bikes, which they own, they're self-employed
contractors, and this protects the company as well as enables us to do faster deliveries.
London is a very difficult city to deliver using cars, so inherently we use bikes.
In terms of cash, none of our business is cash.
Everything is done electronically, so it's through an app or a website.
Customer pays us.
Our drivers have these special cards so they can go into a store and make purchases.
That's how we do it.
They have special debit cards that we control where they can go and make purchases.
If we have to return something, so we pride ourselves on customer service, we simply
send a driver back with the goods to the store, and we deal with it, to be honest, it happens
rarely, so we deal with it on a case-by-case basis with the customer directly.
On returns?
No.
On anything?
Well, sure.
We bought the most expensive thing we've ever bought, I think, was a £5,000 Cartier bracelet.
I think that was the record.
They sent a...
They sent a Hatch one to go get it.
We sent a Hatch.
That's amazing.
Yeah.
Andres?
You guys, same thing?
Vehicles are not worse?
So it depends on the markets.
So in markets, we do deliver ourselves.
There are vehicles.
We employ the drivers directly because we want to be sure they're insured and all that kind
of stuff.
And in markets where we work with partners, they'll more often not be the driver's vehicle.
It just depends on the legal jurisdiction.
So for example, we own everything in Dubai and Hong Kong, but in other markets, we don't
just depends on...
Do you need bikes or also cars?
We don't use cars anywhere in the world, I would say.
We in London are almost all bicycles now, about 90%, Paris 100% bicycles.
You don't really want people to be on a bicycle in Dubai, so that wouldn't be great.
But the interesting thing in Singapore, it's actually working on bicycles, which kind of
shocked me.
So we're trying to push a really strong fitness angle as well.
It depends.
It depends.
Generally, yes, but it depends on the jurisdiction.
Okay.
I know.
We all in there looking for the good people.
And my question would be to Andrew, you are going to protect your own square meter and
a driver who works for you full-time or part-time over the weekend.
Can them freelance working for Ryan and Will?
How do you kind of ring fence your staff so they don't float around between the three
of you?
Yeah, sure.
So the first answer to that is that the busier we are, the more deliveries we do, the more
hours we can give that guy.
So our drivers are all paid on an hourly rate and then usually plus for per delivery as
well, depending on which country they're in.
So they're not on a pro rata basis where they're paid just per delivery.
So if there's no deliveries or very few, they're getting less money.
They're always getting a minimum salary and then a top-up depending on which country.
So yeah, the busier we are, the more hours we can give them.
A lot of these guys are students, et cetera, so they can only work certain nights anyway.
It's not a full-time career.
But what I would say is that the proliferation of delivery has meant that now you've got more
and more people seeing it as a professional role, a full-time role, so they can work for
us two or three days a week, work for Will, work for Ryan.
That's good because now they can supplement their income because in the past they would
go and work in a bar, which is much sexier, pick up girls, get paid more money, you know,
and we would lose them.
But now they're probably more likely to stay as a driver because they can supplement their
income, you know, seven days a week.
And they don't get a girlfriend.
No girlfriend.
We know that's bad trouble anyway, getting a girlfriend.
Okay, Maria.
So especially to William, you talked a lot about the brands and that the brands drive
in the business.
So how you would take our fear away regarding customer data.
So how you would take the fear away from us brand owners, so to say, that you redirect
our initial customers or guests who order our food from your website towards any other
colleagues here.
So how would you handle that obviously increasing market share and increasing fear from all
of us?
Sorry.
Is your question around how do we share data?
Yes.
Okay.
You know, first of all, I think it, yeah, quote, unquote, the elephant in the room, whatever.
I think it's important to state that, you know, we, our business would be nowhere obviously
without the brands that are on our platform.
That's very clear, right?
And so, you know, we have a duty to protect that we have a duty to enhance that.
But we're also building a brand ourselves at the same time, right?
And so I think what has worked best, you know, in our business is if there's a real concerted
approach towards partnership, as opposed to kind of a supplier relationship that doesn't
work very well.
And so it's about sitting out and having an honest conversation about what works for you,
what works for us, and then ultimately what works best for the customer, right?
I think on the data sharing side of things, what we do is we share anonymized data.
So for example, you know, here's where you rank against your competitors in this segment,
in this segment of food, in this segment of delivery length, in this neighborhood overall.
And so we have dashboards, you know, to kind of show that to you.
We, due to data protection, are unable to do certain things like give you just the entire
customer database, right, because that violates EU data protection laws.
But what we can do is send emails and communication on behalf of you to those customers, right?
So you effectively get to the same place.
It's just with data protection laws, we have to facilitate some of that communication.
I think David, you were basically saying you're sharing data by starting to help restaurants
with site selection.
How much more data do you share?
We kept it really quiet because it's been a really big strategic focus for the last
two years, but we're rolling out now globally and I'll give you an example of it.
So everything is restaurants data, so we don't and can't share it.
So we only share it with the restaurant owner.
So that's really important, right, because it is their data.
So the thing we've got, I'll give you an example, so in a little town called Carlisle in Northern
England, we had a pizza restaurant we trialled this with.
First and foremost, you're doing £300,000 a year in turnover.
We started rolling this stuff out by 18 months, then last year we did £900,000 in turnover
and I would say about 550, that was directly attributable to how we could start using it.
We expanded to a new part of the town, opened a new place, we told him where to open it,
it grew, I think he told us five times quicker than this first one because of the location
specific we could do.
So I think what's an interesting question for people in this room is how they think about
delivering and they want to use it.
Because you've got amazing services you can now use, you've got Will's business, you've
got Uber, you've got Henchman, you've got loads of businesses that are really interesting
to explore and highlighting what a huge opportunity delivery is.
And I think a lot of people in this room have got to work out how important is it strategic
for the next five years.
Because if it's going to be 20, 30, 40% of your revenues, you've got to work out, do
you want to own that data and own the process and own it like Domino's do or do you want
to export it out?
I think that's something for people in this room to decide and get clear about how they
think about delivery.
Because for some people, it won't be that strategic, it's a nice to have.
For others, if it's going to be the heart of what you do, you've got to start really
taking ownership of it because otherwise you're going to wake up in two, three, four, five
years time and 40% of your revenues are owned by someone else and that's not a comfortable
place to go, I would say.
Do you charge?
No, that's part of our 13% commission.
We think that's about the value proposition, right?
We're coming to just about to the end of the time for this.
What I'd like you guys to just do is give us an off the cuff where you think your business
will be in two years.
Sure.
I'll go first.
I think we'll be, for the rest of us we work with, I think we'll absolutely be a data
insight restaurant services platform for various things right from the start of the supply
chain through to the customer.
There's no doubt about that.
I think we're already heading that way quite quickly.
I think from a revenue perspective, just as you know we were in public two and a half
years ago, we'll be a billion pound turnover company by 2020.
There's no doubt.
I think Henchman will continue to evolve and in two years time will be the leading technology
platform for any business or company that wants to do their own deliveries using artificial
intelligence and automations.
Sales?
What do you think your revenues will be?
I don't know yet.
Ask me in two years, I guess.
We'll be somewhere between 30% and 45% bigger in turnover.
We would have crunched our delivery times even further down.
We'd probably be having full trials of stores with drones and possibly the Drew, but definitely
drones.
Definitely drones.
David?
I think in two years I expect us to help a lot more restaurants expand, like thousands
of units of Reboxes.
That's the number one thing I focus on, so I think that'll be a big part of our business.
I think that further cements partnerships with restaurants.
Terms of turnover and all that stuff, I'm not sure.
I hope it's a lot bigger, though.
That's great.
Gentlemen, thank you very much.
You're free.
You're free to go.
Go give Clemmie back your headsets.
Thank you again.
Thank you.
