Morgan Stanley: These Food Delivery Companies Are Best-Positioned in Europe

According to a recent analysis by Morgan Stanley, Just Eat Takeaway (JET) and Deliveroo are well-positioned within Europe’s competitive food delivery sector, maintaining strong market shares across various countries.

The investment bank examined the market share dynamics of key food delivery companies in Europe, including JET, Deliveroo, Delivery Hero, Uber Eats, and DoorDash, particularly focusing on the Western European market.

Morgan Stanley indicates that JET holds a leading position in important European markets, with an average market share of approximately 43% across 11 countries. Notable leadership positions include Germany (84%), the Netherlands (66%), and the UK (41%), as well as a strong presence in several other markets.

The report mentions that JET’s market share trends have stabilized in its core markets after encountering pressures in previous years.

Deliveroo also ranks favorably, being the second-largest player in four out of five major markets, with an average market share of 29%. Additionally, Deliveroo maintains the third position in its remaining market, with stable market share figures in its primary UK territory and other regions.

Morgan Stanley suggests that Europe’s food delivery market is still ripe for consolidation, as most countries feature either two or three major competitors. The bank points out the potential for further consolidation in the landscape, particularly as European companies strive to improve profitability and cash flow. This could lead to some businesses exiting less profitable markets, where they have a smaller share.