Takeaway.com, a Dutch-based food ordering company has acquired Bulgaria’s BGmenu and Romania’s Oliviera as another step towards European dominance. The deal was closed for a total of €10.5 million ($12.9 million) in cash. The company already owns largest food delivery brands in Germany, the Netherlands, Poland, Belgium, and Austria.
https://t.co/yG4fUqwZwn acquires Bulgarian food delivery #startup BGmenu for €10.5 million https://t.co/0u9IIedtJQ
— Marcin Zientek (@zientekglobal) February 23, 2018
It’s about growth and market shares in food delivery
“With the acquisition of BGmenu and Oliviera we are adding fast-growing online food delivery markets with a sizeable population to our footprint,” said Jitse Groen, CEO, and founder of Takeaway.com. BGmenu and Oliveria currently hold largest market shares in their respective countries of operations. With the acquisition, Takeaway.com plans to expand into the continent and stimulate further growth. Both companies were owned by the same holding led by CEO Vladimir Davtsjev.
“BGmenu and Oliviera are two reasonably-populated, rapidly-growing home delivery services we can now add to our portfolio. Our goal is to apply the same strategy across every country, a strategy that has resulted in incredibly rapid growth for our Polish brand, Pyszne.pl”, Groen further added.
A Dutch delivery service unicorn is born
The leading online food ordering and home delivery company was founded in 2000 and is also listed on Euronext Amsterdam (AMS: TKWY). The Dutch company has raised €87 million from venture capitalists and €328 million from their IPO in 2016 at a valuation of €892 million. Unlike its other European rivals like Uber Eats and Deliveroo, Takeway.com never maintained fleets of delivery drivers and instead only provided restaurants with an online portal and ordering management system, one of the reasons that Takeaway.com is able to stay profitable in a competitive market and also acquire companies that suit its growth.
Acquisitions and exits
In 2016, Takeaway.com acquired British competitor Just Eat’s Netherland and Belgium businesses for €22.5 million. Interestingly, the deal took place in opposite direction as well when Takeaway.com shuttered its British business and sold its assets to competitor Just Eat, reported Business Insider. The transaction was in line with the company’s strategy to sustain leadership positions across Continental Europe.
Takeaway.com is the leading online food delivery marketplace in Continental Europe, connecting consumers and restaurants through its platform in 8 European countries and Vietnam. There’s a lot of competition in the food delivery market, however, experts believe there is still room for growth even in Europe where “online penetration rates of food delivery run from 56 percent in Sweden to 43 percent in Austria“. In its 2016 report titled The changing market for food delivery, global consulting firm McKinsey wrote that “the market believes there is still rapid growth ahead for these players. The challenge now is for them to deliver on that belief.”
The latest acquisition deals by Takeaway.com indicates that the Dutch food delivery company is using the acquisition of local players in other countries as a means to realize its growth strategy. The numbers shared by the company show it served millions of customers. In 2017, the company processed orders worth €1.1 billion over the period of 12 months.
Takeaway.com owns the largest food delivery brands in Germany, the Netherlands, Poland, Belgium, and Austria, with over 31,000 connected restaurants.