Q3 2021 Just Eat Takeaway.com NV Trading Statement Call
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The conference is now being recorded.
Ladies and gentlemen, thank you for holding and they'll come through the just eat takeaway from Q3 2021 trading update.
That's a small linked to all participants are in listen only mode.
So the presentation, there will be an opportunity to ask questions.
I'd like to hand over the conference to Mr. Yes Circle go.
Go ahead, please sir.
Thank you operator.
Good morning, everybody and welcome to this analyst and Investor Conference call to discuss the first quarter 2021 trading update suggests you take away the pump.
On our corporate website, you can download the press release and the slides for this analyst and Investor Conference call.
Given we will host our capital markets Day next week today's presentation will be kept very brief.
So after our marathon session at the half year results I am hopeful that we will be able to limit today's session to 60 minutes at the Mexico.
And in this presentation that will be taking you through our highlights for the first quarter.
And the first nine months of 2021, and I'll end the presentation with an executive summary, with the key items of our press release after which we will open the call for your questions.
My Fellow board members has been listening to you Debbie are also here to answer your questions.
The first quarter of 2021 just eat takeaway to film processed $266 million orders, representing a 25% increase compared with the same period of 2020 do.
<unk> amounted to $14.0 billion euro in the first quarter of 2021 up 23% compared to the same period of 2020.
Our total delivery orders grew by 58% year on year to $120 million.
Reflecting our efforts to expand our delivery network and our significantly expanded restaurant offerings.
For the first nine months of 2021, I would've growth was 41% compared with the same period last year and totaled 830 million orders.
Our year to date gross infection value reached nearly 21 billion.
On slide three.
You can find the split of our orders and GTP for each of our segments for the first quarter.
With most of the world's returning to pre pandemic life, including restaurants, reopening surplus market and traditional summer seasonality or growth in the first quarter of 2021 remains strong.
Just a takeaway com is well positioned for ultimate winter, our traditional growth season.
On slide four.
To reiterate our guidance in terms of order growth CTV and adjusted EBITDA as a percentage of <unk> for 2021.
We guide for an order growth for the full year of 2021 of at least 45% and excluding Grubhub and.
And for the full year of 2021 GBT for the combination is expected to be in the range of 28 to 30 billion euros, which clearly establishes us as one of the largest online food delivery companies in the world.
2021 is an investment year to restore and expand our market leadership.
Particularly in the legacy just eat markets. However, we believe that adjusted EBITDA losses peaked in the first half of 2021, and we expect our adjusted EBITDA to improve going forward driven by a few factors.
Firstly, the partial removal of significant fee, perhaps in voluntary partner support in the U S and Canada.
Now you may be aware that certain fee types in the U S have been recently extended which we will actively opposing point however.
However, even including these extensions, we expect our adjusted EBITDA to improve going forward.
Secondly.
Improved unit economics in our delivery network and thirdly, increasing benefits from the investment program in the legacy Justice market.
As a result for the full year 2021, we expect Jesse takeaways from including Grubhub to generate an adjusted EBITDA margin in a range of -1% to -1% to 5%.
As stated previously we will continue to invest in growth and prioritize market share and adjusted EBITDA.
I will now continue with the conclusion of this presentation on slide five.
With most of the world's returning to pre pandemic life our growth in the first quarter of 2021 remained strong despite re openings across markets and traditional summer seasonality.
Our investment program in the U K continued to drive sustainable network effects, just even in the UK with more than 200 million orders in the first nine months of 2021.
Up 51% in the fourth quarter of 2021 compared with the same period last year.
So Steve so passed the $1 billion or this milestone in the UK since its foundation, demonstrating our enormous scale and longevity in that market.
Germany was our second fastest growing segments, adding $10 million incremental orders in the quarter compared with the prior to prior year, representing 35% order growth and demonstrating the strength of the LIFO on the brands.
In the U S. Our orders in the first quarter of 2021 increased 3% compared with the same period last year. We have now started to influence our improvement program in that country refocusing on the strongholds and we will share more details regarding our U S strategy at the capital markets day.
We also completed the acquisition of this startup SK in Slovakia on the first of October.
We reiterate our guidance for the full year 2021, and last but not least we look forward to updating the market on the exciting opportunities for long term growth across our business during our capital markets day on the 21 hotels.
And with that operator, I would like to open the call for questions.
Thank you.
Ladies and gentlemen, we will start the question and answer queue now.
So, but let's just say for your question at all Sir please.
Star one on your telephone.
So the first question is really on voice Honduras Stein.
Please sir.
Alright. Thank you very much for taking my question just two from me I think just just to confirm and maintaining your FY 'twenty one guidance can you confirm that.
Q2, you still see Q2 as peak losses in terms of the investment program and then secondly, I suppose the U S showed relatively weak growth year on year and in particular the marketplace I think.
It can be strong decline what was the main driver of that in the in the quarter.
Thanks for the question. So yes, we confirm that Q2 was the peak of our losses.
So that's a simple answer for you regarding the U S.
We are analyzing that country very thoroughly and we'll talk about it also at the capital markets day, the unconditional deliveries on it too much today.
With the sectional with next week.
Sure.
I think what's important is around will be seen in the U S is that actually a lot of the things that we have done in the U K. We will also be applicable for the U S. Now the major difference between the UK and U S is that logistics is actually quite profitable.
The United States, We said that we are agnostic in weather.
We have marketplace orders for delivery orders and particularly of course through in countries like Canada, and the U S where actually the gross profits on both of these models is quite significant.
Great. Thank you.
The next question is from abnormal thank you Lee.
Paul.
Go ahead, please sir.
Frankly, yelp and Youre, implying something like about 32% order growth in the fourth quarter, which is about in line with what you did in the third quarter I'm, excluding grubhub here as you do in your guidance.
The company just to get a higher.
So can you give us some evidence.
Or perhaps some indication that would support the view that indeed older gross can be similar in Q4 versus Q3, despite the comp base.
And secondly, a very quick one.
Previously you mentioned that you would run the U S business at or near breakeven for 'twenty, one 'twenty two.
Since then we've seen the introduction of the covenants capsules you mentioned jetson.
Can you confirm that this guidance still holds or is that something that you might revisit that.
Thank you.
Yes. Thanks.
So your first question I think it's important to note.
This is true for the whole e-commerce sector and for the food delivery sector.
Is that we win from Lockdowns into a very long summer holiday for a lot of people.
And what we're seeing now is a typical seasonal pattern that we were used to before the pandemic.
Also if I look at other things happening around this traffic jams and offices being being again growing two 1% occupancy at least and a lot of our countries.
You'll see that we are basically returning to the situation before the pandemic now I'm not a doctor I cannot predict what else will happen of course at the end of the year, we assume that that's not going to be any more lockdowns in which case of course, we would grow faster than will be currently you currently have in our budget.
We always grow faster in Q, <unk> Q4, and in Q3, Thats, just a seasonal pattern, it's base, becoming shorter and it's the way that Tony and Thats, what we already see now.
And.
Usually we would have seen that earlier.
It's also important to note, but actually September was quite warm in most of the.
Our countries and therefore, we're seeing that now happening hotels, but it looks like a typical seasonal pattern Debbie was used to let's say until 2019, because the pandemic remove the seasonal pattern last year, because everybody was locked up in their houses.
And there were no holidays.
And then the guidance in the U S. Yes. So the second question around around the peak as well, we said that we would run.
Close to breakeven on the breakeven.
Of course, the fee caps in the U S are a major setback for us, we're not going to sugarcoat that.
If somebody thinks that amount of money from the following.
From your results.
Otherwise quite profitable food delivery business, such as Grubhub. Then it has an impact for US we were planning to invest that money into into flight some cities across the U S.
We limited that program to a couple of cities.
Refocusing our efforts of course in the year.
In the U S. But yes that is then we confirm.
Okay.
Thank you so much.
Thank you.
The next question is from occurring.
B and PPE go ahead please.
Hi, good morning.
Two questions if I can so firstly just on the EBITDA range, obviously most of the way through the year, but the range is still pretty big capable what implies for Q4 consensus I think is taking a round about one 2% negative EBITDA. So I'm just wondering is.
Is that reasonable when should we expect something different.
The second question, obviously jewelry.
So back in July August a few hiked fees in the U K.
I don't think there's much evidence of the impact on training for that.
Okay business, but just wondering if you could pull that into account that thank you very much.
Thank you. We've said previously already that he is not going to be materially better than H. One in terms of EBITDA it will be better.
So I'm not sure what that gets you.
Q2 in percentage, but I think you were quite close.
In terms of.
The UK, we do a lot of things in the UK, we are improving the profitability of our logistical orders now that is a bigger program efficiency gains off the network.
It is replacing.
Some models that we are using you will remember that we have free model still in the U K is actually one of the few countries in which we operate and which we have multiple models, but that's a historical.
<unk> in the U K we are.
Raising the <unk>.
We can get into how we are doing that next week.
If he wants but thats something that were working on raising also prices, but still well below the competition.
So there's quite a lot of things that we're doing and yes. The impact that we are seeing actually on those orders is on the lower ticket orders, which is good because obviously, we work on a commission basis.
Other than that we don't think it has a material influence on the market share in the UK and I think actually we're in.
Quite good spots.
So as an investment.
In particular in these legacy Justin Justin markets.
And therefore, therefore after those investments that UK business is now twice the size we've heard of our competitors last year that they would overtake us. This year. This of course has proven to be nonsense.
And therefore, we have accomplished that goal and now we're on the way back to getting that business to the high profitability that it was running before before we make the investment.
Okay, great. Thanks, very much look forward to next week.
The next question is from Mr. Pedro.
<unk> ABN Amro go ahead, please sir.
Yes, good morning.
Maybe number although.
A few questions.
First is.
When the marketplace in the U S.
Down 13, or 14% year over year. So can you give us a bit more in such and what's happening here is basically let's say.
The number of restaurant partners debt is coming down or is it actually consumers shifting from marketplace orders to own delivery orders.
Okay.
<unk>.
And.
What are kind of do the things that you can do to address that.
<unk> if you will.
The second question would be on.
Let's say Canada.
Obviously the growth is slowing there.
Don't have let's say the market development top of mind, but can you give us a bit of a feeling on.
Your growth in Canada.
The markets are you, losing market share or is the market slowing down.
Yes.
A bit of an on.
Bookkeeping, one can you give us some sort of an indication where the acquisition would be for Scott in terms of.
<unk> and GTC.
Prosecutors split between on the Liberty in the marketplace.
Annual numbers are perfectly fine for me.
And lastly, the delivery fees in the U K.
The first half presentation.
Basically alluded to the fact that you raised.
<unk> in August.
It's about $51 million in profitability from our lifeblood basis then.
You raised the fees and another time in September can you give us a bit of a feeling on what the implications are for profitability.
The second.
The increase in delivery fees in the UK. Thank you.
Let me start with the last one just to be clear our fees go up and down right. So they're not always go up and they also don't say go up for all the inventory that we have.
On our website.
I think what's important.
To note here is that we use the lower delivery fees to address the churn in just eat.
You will amendment will make this very insightful also next week, you'll remember the thing the foremost thing that we set about fixing the adjusted story in the UK was around addressing the chair.
And the churn was people going to other websites because just you didn't have certain inventory. So a low delivery fees were meant to get the customers back to adjusted because it just it does have the superior network in the UK. It has the most restaurants as the biggest cost is the most affordable option.
That's why we introduced lower delivery fees, we have always intended dose to go up when we saw the opportunity to start with.
Without impacting the growth of that business.
That's why we're doing the delivery fee.
We don't as we said, we don't see material impact on the order growth in the U K, because we are actually increasing the profitability of these.
These orders.
So I don't think it should stay so blindly at the delivery because we are improving a lot of things improving the efficiency of the network. We are increasing <unk> in the UK. So we're doing a lot of things and example for us in the in these in these places are.
Places like Canada, and places like Germany, and Holland, where we have that high efficiency.
Disciplined.
We don't have it all across the UK. Its loveliness particular example, because we don't have the density yet that we would have for instance in Berlin, Vienna, Brussels Amsterdam or.
Will impact.
So we're not at the level that we need to be now that logistical business is still growing 300 plus percent in the UK. So you can imagine that we are on our way to the density that we require with that network to be more profitable.
Then your first question around marketplace versus delivery in the U S. It's very important to understand that logistics in the U S is highly profitable. This is also why our Canadian business is so profitable wireless also a logistical business. So it doesn't really matter to us whether it's delivery or marketplace. It has actually quite a nice profit.
Both of these.
Of these.
System. So we're actually agnostic to what it is now what you're seeing in the U S is likely a mix effect, we see that also to a certain extent in the rest of our network because of the summer slowdown that we have.
We have seen looking into what is exactly causing it were because I think it is important to understand that might shed some light on what's next for the next week as well.
As you would notice that it doesn't matter.
It would matter of course in Europe, it doesn't matter and in the U S.
Then if you look at Canada, the whole market is slowing down in Canada, I don't believe that we're losing market share I think we're pretty stable there.
Yes.
Actually with some more comments on that if you look at basically all of the metrics.
It seems like Youre very much.
Well on the market share side several of our.
February around the 50% Google trends.
And Arthur Lai Daily average users on the App side through the first statement. So it's a very general market trends there.
Yes.
Then the best startup SK question I don't think we've disclosed any numbers that Slovakia as small country you should not expect expect a large difference in our in our slowly.
Of Slovakia the reach.
And that will be acquired it is because it's actually quite profitable. It's a nice business. The market structure is that it is not very clear with our heavy so the logistics is limited so it looks a lot like a country like Germany, where you don't have a lot of visa was us because obviously a lot of volume in logistics for sticking with us.
So the market structure is.
Lessons for us and we'll try to improve that business, just like we always try to improve business and stuff.
We acquired.
I think I've covered your questions.
Okay.
And thanks for your question.
The next question is from Matt.
Kelly.
Go ahead, please sir.
Hi, good morning, Thanks for taking my questions.
Questions. Please firstly on the U K.
Do you see growth of delivery versus marketplace businesses going into Q4, and perhaps into next year with all the reopening and your thoughts previously about marketplace as being more resilient into this slowdown potentially.
Secondly, can you shed some data points on the improved unit improved unit economics point that you made on the slides any data you can share that would be very helpful.
And largely Germany, it'll be great. If you can share some insights into how you are improving the logistics alpha and clearly that's where you're seeing potential new competition.
Youre doing that too.
To really defend the position and grow the logistics side that'll be helpful. Thank you.
Yeah. Thanks regarding that question.
Germany that always makes us laugh a little bit guys. We have all these vessels already only form them.
We have nothing to improve that we have the restaurants and the logistical network in Germany actually operates at a higher utilization in our Canadian business. It is a fantastic logistical business. It is just not very key was our heavy in Germany and therefore.
Amount of logistical orders is limited because that's just not so much inventory is what you would have another in other countries.
And just to.
Point out the strength in Germany is we added about 3 million orders on a monthly basis and the loss in last year and we estimate the total competition at 100, maybe 200000 orders in June.
So we are growing.
<unk> <unk>.
<unk> 15 times faster than the whole size of the.
The competition and Jim.
I realize that's the current situation maybe it will change I don't know, but we should not exaggerate how big the competition is in Germany, because it's tiny at this point.
Then.
New or expansion of logistics in Germany, where are we is there any update how youre seeing expansion into other cities, yeah spending too.
We have close to 80 cities in which first logistics and Germany, I think our competitors are at 5% or something like that we are at 88.
It's a big operation you need to be conscious that most of the logistical business will be in Berlin in Germany. The rest of Germany's far less than was the case also for delivery when they left the country and was the case for food rollout. When we bought it is very much scoots Tu Tu Berlin and up through the rest of the country.
Germany is a very.
Peculiar country in that sense is that I believe is $3 million out of the 85 million inhabitants of that country. It's not the same thing as London in the UK, it's actually quite small compared to the rest of the.
All of the countries, it's a big country, Germany right.
I think it's important to to pointed out.
Regarding your question around the UK growth delivery, one marketplace, we're adding tremendous amounts of restaurants and a lot of those vessels, obviously, our logistical restaurants, because thats, what just forgot to do before we came in.
And that also means that by definition the growth of logistics is going to be higher than the gulfport marketplace, just adding more of these restaurants and these vessels I don't have any orders from us or they go from zero to allot.
We have market based restaurants, we also cannibalize a little bit of that phone orders right.
They will not grow as fast as soon.
Is logistics, there will be a time at which they will grow at exactly at the same speed, but we're far removed from that because it is big catch up.
In the UK and the way you need to look at marketplace. It will still grow in the U K. It is super profitable nobody else has it right. We have 95% of the marketplace business in the UK Super valuable to US, especially provides us with a lot of EBITDA that we can then use to expand our logistical network and investments logistical network.
Is it to have the logistical network run operations the same way it runs and hold onto the same wavelengths in Germany in the same way as long as in Canada.
That's what we're doing in the UK.
Then the unit economics of a go to and the improvements to that to the logistics in the U K.
As a follow up to that question that you have will talk about next week.
Okay.
Thank you.
The next question is fine with me.
Hesselink from the I won't you go ahead. Please sir.
Yes. Thank you.
Maybe what can you say about the effects of the opening up so how do you see metrics like net client additions order frequency average order value.
How do you see that.
The impact in the short term and also maybe going into the fourth quarter.
And there are also a little bit you discussed the UK, but more in general at the difference that you see and what you expected in marketplace furniture delivery.
And then second question is on the U S.
Yes.
You have a relatively large.
<unk> or to the office market in the U S.
How do you see that with the with the opening up thank you.
Thanks.
Yes.
I will refer the first version two of Europe around the order fleets and those changes.
Let me comment on.
The U S.
The U S is not.
Back to a normal situations such as most other countries.
Officers are mostly still quite empty.
You also see that of course in our conversations with with.
Investors.
That's very different from situation here right. So you see that especially replacing was brought up a strong actually replaces debt.
Quite some people and especially because.
Drop up is as these big <unk> component to it that is not helping drop up forward in <unk>.
U S. We assume of course that this will change also in the U S that will be a return to the offices at some point.
In time.
Yes.
Regarding the Cape the ISO actually we saw especially at the beginning of the lockdown using the LTV is coming down and then stabilizing at a little bit of lower level, all by higher than pre COVID-19, but it was something we anticipated.
When the Lockdowns came into play because.
That with the Lockdown back CDA.
Shoot up quite significantly all right, we have to say that even on a quarter over quarter.
Especially the U K for example remains strong the LTV level because.
Yes, it was indicating earlier, having put some measures in place to actually.
Yes, I have higher ltvs of driving higher LTV, because that actually also drives efficiency.
Next time in terms of new customers obviously.
Going back into seasonality.
Also indicating it also means that a bit more seasonality also on the new customer side with usually somewhat being a bit of a slower period in coming into winter New customer addition, youth.
Usually it goes up and that's also what we are at the moment at least.
Being.
Likewise on the reorder values, which were also a bit slower in the summer period, but you're also expecting them to go up with the seasonality kicking in again.
Okay. Thanks in the different market based delivery, you said about the U K, but in other regions or is this still the case that you expect that that would be.
The marketplace will be less impactful.
Going back to normal.
I think you need to separate two things there.
Yes, because obviously if the restaurants are open people will go through the restaurants.
No Nick I CK, because we're expanding.
The logistical network. So if you look very.
There's a lot of things happening underlying in the UK. So we're expanding the logistical network.
And yes, there's going to be less interest in logistics in the U K overall, but if you don't have logistically added and of course, you're going to grow that quite significantly. This is also by the growth for us is actually still quite high and in logistics, but I don't think thats the market per se.
The openings is good for logistical operators because they can also go through these go to these restaurants.
We would expect that in other countries in which we have a lot of these marketplace orders at market base.
By itself the growth difference between the two will be will be less than price.
That makes sense okay.
Okay.
The next question is from.
Can you Rds.
Coca Cola.
<unk> you Sir.
Thanks very much two for me. Please first one I was just wondering if you could talk a little bit more around reopening seasonality across the different region.
Kind of with Europe kind of partial lockdown in <unk> and CMS seasonality the bigger impact that hadn't.
Germany, Netherlands rest of the world.
If a big headwind in the third quarter.
And how about reopening we're seeing that play out across logistics in marketplace.
If there's any trends youre seeing if we start to reopen across different markets and then the second question was just on restaurant sign ups in the U K. You mentioned you are having good luck with.
So it is I guess I was just wondering if you could talk a little bit more around how those negotiated depreciation dog Devin how kind of the rollout of your own logistics network is perhaps.
It's easier to sign up more restaurant, how kind of pop exclusivity need to roll off if there is anything kind of thing.
On on kind of tracking about progress.
Yes.
Thanks, So let me first address the second question will talk a lot about this.
Next week, we actually have a significant increase of restaurant sign ups in the U K. It's quite extraordinary will talk about this next next week's go into that too much. Because then we have to scratch the chemical market.
To make anybody happy with that.
Regarding reopening I think this is the order of how you need to think about markets being <unk>.
Almost fully open and still relatively close so I think Israel's furthest along and we've seen that in the <unk> segment.
Then Europe.
Okay.
When the U S in general.
What's the right way of looking at.
Data from that.
In the world.
Yes, I think that's the best of the best sort of sequence.
Okay.
Generally you see the market slowing down April when the economy is more reopens.
The way you need to look at this is that.
I think the peak.
Off.
Corona for food delivery websites must have been in may.
Most have been in May.
Okay. That's great. Thank you.
It's been both in Europe, and Europe then.
From that.
We saw a lot of people, taking more holidays than usually because they say a couple of the holidays.
Anyway, but we saw a prolonged time on all of that.
And we saw seasonality in the sense that September was very warm in most of our countries.
And now we're seeing just a regular seasonal et cetera.
Sure.
Thanks.
During Corona because people were locked up I think.
Best of luck.
One.
Thank you.
The next question is from Amit <unk> from <unk> call that piece Matt.
Yes.
Hi, good morning, everyone.
Just a couple of quick ones from me.
The first one on.
Australia I just wanted to know if that's still your POS described geography, and when you're continuing to take share that competition.
Second, let's just I'm glad that you can give us any update at all on the timelines of that.
Around the fee cap independent entity in the U S.
And then finally it was just whether we would get an update at the capital market day, all gross profit for the region and how that's been evolving, particularly in market like the U K, where you've been obviously investing.
Okay.
Yeah.
Okay.
With regards to Australia.
The compound also much stronger because we actually they're in.
In the quarter, which has a year over year tougher comp and therefore, obviously also like the growth rate.
Coming down a bit and third growing our way well, but bear.
Bear in mind that Australia.
It's still in Lockdown.
But we have for example, actually you can see the New Zealand very strict measures on the bell.
But that but there are some countries on a much smaller scale I'll buy that actually.
On a relative scale growing faster, but Australia.
The fastest growing in our portfolio, but it's the fastest growth.
And it was also like historically not necessarily the fastest growing because we have some small countries, which are prices going to be growing.
A little faster, but it is.
Growing at a very decent pace.
And then the other one.
Okay.
I think there was a question around fee caps and horizontal.
An update on the court case, yes, yes. So.
We are of the pain that these fee caps are illegal and other doesn't help us much at this point in time, because obviously you've lost by some EBITDA because of this fee.
<unk> taps.
We are moving.
Through the courts I'm pretty sure that we'll see some.
No intermediary verdict and that sort of thing that will that will become public and that will show you roughly weapons things are going.
I assume but.
These fee caps.
We're quite confident that actually gave will fall away, but it might take us.
That's the way we look at these and they are annoying we've also.
Before that if they don't fall away, we will have to raise commissions sorry vies for consumers just like all the other players would have to do it in someplace already have done.
In the U S because let's face it there's other people also.
But at the same the same sort of.
With the <unk> and then your last question because I think we.
Oh the lost.
Gross profit.
Yes, whether we'd get some granularity on gross profit per region again next week at the capital markets day.
I don't think we're going to do that even next week I'm looking at.
No no we don't go perfect more financials, maybe liberated.
Not really.
Please start the detailed financials, we will provide to two times a year.
Off year and full year.
Okay understood and then sorry, just a follow up on the Australia question are you still taking share in Australia.
At the moment, we see relatively stable market share if I look at similar data that shows up above the 50% Mark over time.
Slightly above 40% Mark.
So that has been.
David.
Two or three months.
Thank you.
The next question is from Mr. Hooke Joyce from Goldman Sachs Go ahead. Please sir.
Hi, good morning, Thanks for taking the questions.
Just two quick ones.
Firstly.
In Netherlands, and Germany, the percentage of own delivery orders have slowed.
Awesome.
Actually slower than the.
As a percentage of smaller than the previous quarter.
I will try and do you expect to see continuing its not driven by any of your own actions or competitive directions. I know you've touched on this earlier, but some more elaboration that would be great and then in terms of the logistics right as you're employing are you seeing.
Cereal wage cost inflation and the Ryder network are you seeing difficulties hiding riders hiring right, there's no hiding them.
Have you seen any yet dropped so have you had any issues with consistency of service on the back of that thank you.
Thanks, Let me first address the question about Holland and Germany.
Maybe not a lot of people know this but we've had competition in Holland from all these logistical guys already for the last five years is not a new thing.
And they are small so they're unlikely to want to change our dynamics in any sort of way.
I think if you if you will see a decrease of delivery percentage in Holland or in Germany, It's more related studio openings and anything anything else as we.
We said, we believe that in these sort of countries in restaurants, we open and people can also go to the restaurant. They don't have the percentage of cross border net and then the marketplace actually is a little bit more resilient because.
These orders are usually different orders. These arent usually convenience order, so thats why probably necessary, but it could also move up next next month I don't think I don't think you should then conclude that has gone to.
Going to decrease.
Also we don't really care about it because we happen to have quite a inefficient logistical network in both in both countries. We're in all the cities of any sort of size.
And we are the largest in all of these cities and we are actually quite efficient and by the way we were very cheap for IV charts are the lowest of all of our competitors in all of our markets. So it's also not that.
<unk> expenses were actually quite quite quite cheap.
And therefore, if competition comes in with the same sort of offering actually inferior offering because they don't have the network effect I don't have the restaurant network that don't have <unk> disease at a higher price and obviously, that's not going through influencers to two months. So I don't think we have a lot of.
Outside influenza and its more of a general mix effects.
What happens in society, rather than anything else.
And then the second question.
Yes, there is some some thresholds.
Carrier network.
Not something that we cannot handle because we have to use networks right.
So in most cases, we're not looking at the same sort of Ryder pool, because we have employees in most cases and not and not be losses.
So it's a little bit different for us I guess, then if you are after three losses.
But yes, there is some pressure on it but that's not something that we haven't seen before we've seen that in the past, especially in Germany.
In a city like new unique it has always been quite difficult to get curious and you actually have to pay up quite a bit to get them and don't forget that in countries like Germany, you can forget about the prelaunch model. So you would always have to employ and even our competitors have to employ the curious if they want to remain remain operational.
Asos specific pressure when actually the lockdown in this pattern.
Because that was also the time when restaurants, we're hiring people. So that was kind of what is it.
Nevertheless, most pressure, but luckily actually for the European business that came across the summertime when it's usually a bit more quiet.
So.
Actually that phase is already over and now we're going back more to normal circumstances. So.
That gives them what they can get.
It is a bit of a pressure because we need to hire a lot of people exit pulp for the growth but.
We are well placed given where also the larger the highest top of mind brand awareness.
We are amongst the most effective employers so that helps a lot as well.
Thank you.
Ladies and gentlemen for any questions I'll remark you can still press star one on your telephone.
Starwood for any questions or remarks.
The next question is from Neil.
<unk> from Morgan Stanley Go ahead, please ma'am.
Great. Good morning, everyone. Just two from me Firstly, if you could just give an update on your market share in London do you think that you are taking share given what you said about the significant number of restaurant sign ups in the UK and then secondly, if you just if you could give an update on your grocery and rollout in Germany, and they don't say decent adding lettings from the docs.
So Charles in Canada, what are you seeing in terms if you cannot make.
And then I'll say the customer behavior of people ordering one grocery versus the food delivery business. Thanks.
Thank you first regarding market share in London, we increased quite a bit.
<unk> got a stable, but you also need to understand that we are optimizing our network quite a bit and be the things that we're throwing out now are these low ticket orders because we don't think it's it's very.
So very much contributing to our growth. So we are we are doing some household maintenance work, especially given that we still operate three different logistical networks.
In London, but we're quite confident that we will increase our share in London.
Flexion again, so we have a big.
Big program on London itself, but it's also very fast growing part of our business. We also need to sometimes look into the quality of that network.
Then regarding the grocery.
In Germany, but also business.
Let me make a general remark about it we're quite enthusiastic Debbie can add.
I am going to go ahead and call it meaningful grocery to our network.
And the reason that I say that is because you see globally a lot of <unk>.
Companies.
Vouchering their way to deliver <unk> and Bayer to people that are sitting on the couch.
Not something that we would be interested in because we can you can ask yourself, whether that's actual demand.
<unk>.
I'd have to actually pay for that.
But we do.
I think it's interesting to the zebra cartons of milk.
If people Miss a carton of milk, because that's I think actually a good use case and that's what we are looking into.
We're talking to a lot of grocery chains across the globe. Now these are not exactly fast movers I don't I don't hope I offend anybody in the grocery sector, if I say that.
But we are getting quite close to announcing a couple of things. So we'll do that when the.
When we are ready for that.
Regarding hubs, we're very enthusiastic about Canada will talk about that also next week.
We're looking also at other places in which we could potentially do that but we are very careful with it.
We've always been sometimes people would say all but you're moving in this.
Slowly no move into things carefully.
Far more important last year for us to restore the dominance that suggest it has in the U K I think that was very important so we weren't very much off the food delivery and stuffing our business with all sorts of Adjacencies.
We are going to be very careful about rolling out our grocery network, we will do it and we will do with hopefully better and more efficiently than anybody else.
But you should really look at the focus that we have as a business and then we won't we won't go all out you see a lot of.
A lot of these fresh grocery delivery business is now being sold because thats not exactly the sort of sustainable sustainable business were offered off the sustainable.
Good service across our markets and that's also what you will see us doing that.
The adjacency of grocery and again its adjacency to our business is not the core business.
We'll talk about it.
Thanks.
Yes.
Perfect.
A question Sir.
Although.
Mhm.
Ladies and gentlemen, this concludes today's Jess and takeaway Com Q3, 2021 trading update.
You may now disconnect your lines. Thank you and have a nice day.
Okay.