Q4 2021 Just Eat Takeaway.com NV Trading Statement Presentation
Yeah.
[music].
Good morning, ladies and gentlemen, thank you for holding and welcome to the Justice.
Tom.
This moment all participants are in listen only mode and after the presentation, there will be an opportunity to ask questions.
Now I'd like to hand over the conference to Mr. Krohn. Please go ahead Sir.
Thank you operator, and good morning, everybody and welcome to this analyst and Investor Conference call to discuss the fourth quarter of 2021 trading update suggesting takeaway.
On our corporate website, you can download our press release and the slides for this analyst and Investor call.
Given we will publish our full year results, including the detailed financials on the second of March today's presentation regarding the fourth quarter trading update will be kept very brief after which we will open the call for your questions.
Fellow Board members brands <unk> and <unk> are also here to answer your questions.
In the fourth quarter of 2021, just eat takeaway dotcom processed $274 million orders, representing a 14% increase compared to the same periods of 2020.
<unk> amounted to $7 3 billion euro in the fourth quarter of 2021 up.
Up 17% compared to the same periods of 2020.
Total delivery orders grew by 32% year on year to $119 million, reflecting our efforts to expand our delivery network and our significantly expanded restaurant offerings.
For the full year 2021, our order growth for the company, including Grubhub on a combined basis was.
<unk> was 33% compared to the same period last year and totaled $1 1 billion orders.
Our year to date gross transaction value reached more than 28 billion euro.
On slide three you'll find the split of our orders for each of our segments for the fourth quarter.
With most of the world's returning to pre pandemic life, our order growth in 2021 remained strong at 33% year on year growth.
As you can see the UK and Ireland was the fastest growing segments for both the quarter and the year.
On slide four.
We provide the same states for each of our segments, but now we.
Show the gross transaction value.
Our adjusted EBITDA margin improved substantially in the fourth quarter of 2021 and as a result.
The adjusted EBITDA margin for the full year of 2021 is expected to be at the midpoint of the guided range of minus 1% and minus 1% to 5% of CTV.
Now as you would follow me to the next slide please.
In 2021.
As both the <unk> and adjusted EBITDA margin targets for our total company, including Grubhub.
And as mentioned <unk> was $28 2 billion.
Within the expected range of 28% to 30 billion thereof.
The adjusted EBITDA margin for the full year 2021 is expected to be at the midpoint of the guided range.
For the full year order growth, excluding grubhub was more than 40% year on year versus the targeted 45%. Despite the dampening effect of restaurant reopens.
Now moving to slide six.
As mentioned at our capital markets day grocery is a huge market opportunity for us as the global convenience grocery market represent several hundreds of billions of euros per year.
As an adjacent market, which enhances the proposition to our convenience focused active consumer base and hence is expanding our share of their food wallets.
By offering the increase supply of choice.
It is also a major opportunity for us to capture new consumer segments and increased order frequency.
This will ultimately drive further network effects and with that significantly improve restaurant and consumer density in.
In parallel the new offerings broaden our peak times throughout the day, but specifically at night, thereby complementing our current restaurant offerings.
Combined with the higher density this will also improve our entire fleet utilization.
That in turn will positively impact the profitability of our entire delivery arm and therefore group EBITDA in the long run.
And to note is that the convenience grocery expansion has been included in our 2021 22 adjusted EBITDA guidance.
Turning to slide seven.
We have already made good progress with our convenience grocery study to date.
We announced several on demand grocery delivery partnerships building on our extensive delivery network amongst others with as that one stop in the UK.
In Canada, a dark store muddle through Skip Express lane is being rolled out nationally, reaching 70% of skips consumer base by year end.
You can see the existing and new partners on the map and we now offer access to over 13000 stores globally.
As announced at the capital markets day on the 21st of October 2021, we changed our reporting structure to better reflect the existing organizational and management structure and provide investors with greater clarity on our underlying business performance across all regions.
As mentioned earlier, the UK and Ireland was the fastest growing segments for both the quarter and the year, while significantly improving adjusted EBITDA.
We will continue to invest heavily especially in our London network, while we expect to further improve profitability in 2022.
North America.
To wrap up continued to make good progress increasing restaurant selection for diners, most notably in New York and Grubhub plus users increase meaningfully.
Our recently announced partnership with instant card and a grubhub branded convenience pilots called Grubhub goods with 711 and further extends our proposition to drive growth.
We remain in discussion with several potential strategic partners to strengthen our U S position.
In Northern Europe .
At $6 9 million incremental orders in Germany in the fourth quarter of 2021, and $47 5 million incremental orders in the full year of 2021 or a <unk> of $1 3 billion in the same year.
Compared with the same periods of course in the last year.
This increased scale led to ongoing profitability improvements in Germany.
Moving to the next slides a critical factor when deploying our delivery model in the different markets is our adherence to local employment laws.
We believe we lead the food delivery industry in this area and we will continue continue to do so.
Our various differences across the market and we apply the most suitable delivery model.
As you can see from the map on the right hand side of the page our businesses are already aligned with the legal frameworks and associated costs are baked into our guidance and long term planning.
This implies that we have rolled out the employee's carrier model across most continental Europe .
We therefore welcome the EU Commission's proposals to improve conditions for workers and help them access social protections and we believe the company will benefit from this legislation as it creates a level playing field.
Countries like Spain, and Italy are actively enforcing labor laws with fines of tens of millions of years already.
And we even saw a competitor leave the country for the same reason.
Moving to the last slide of the presentation on slide 11.
Our strategy is and has always been to prioritize long term growth over short term profits 2021 was an investment year to restore and expand our market leadership in particular in the legacy just eat markets.
Our adjusted EBITDA losses peaked in the first half of 2021 is markedly improved throughout the second half of 2021 and predominantly in the last quarter.
In 2022, we will start to see tangible benefits of these investments with adjusted EBITDA improving to a range of minus zero to up six to minus zero at up 8% of GDP, while delivering GDP growth in the mid teens.
We reiterate the long term goals of the groups.
Firstly, we expect to grow our annual GTD in five years by 30 billion Euro, which is effectively more than doubling our current CTV.
Secondly, we will achieve an adjusted EBITDA in excess of 5% of CTV and the long term. We are confident that we will reach this objective by executing this strategy as outlined at the capital markets day focus on growing sustainable profit pools. We are one of the very few online food delivery companies already achieving this in some of our markets and have a clear found how to get there.
Project as a whole.
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 session. Now if you ask a question or remark. Please press.
Star one on your telephone please limit your questions.
The first question is from Morgan Stanley . Your line is open. Please go ahead.
Great. Good morning, everyone three questions from me.
Just on the order came.
Came in slightly below your guidance can you just give a bit more color on how much of this you think is just from restaurants reopening versus some of the measures put in place in the second half like increase in delivery fees and the minimum order value affecting consumer demand could you just give us some more color on what you're seeing now in terms of that demand elasticity.
And then linked to that how should we think about the outlook for auto guys. I guess your guidance implies sort of a low teens percentage, but what gives you confidence that <unk> will not slow further in 2022.
The tailwind I think it will be fully removed and then finally, if you could just comment on the UK marketplace performance. So I guess, you've seen really slow growth now for the last couple of quarters and negative growth in Q4, So what has changed versus your expectations at the start of the year can you talk about what youre seeing in terms of the NPS score and the order frequency in that business. Thank you.
Thanks, Tim Let me first.
Go to the first question you asked around.
The slower growth in Q4.
I want to be quite specific about because.
Bring you back also to the beginning of last year. When we initially felt well Corona will probably go away in April .
And of course didn't.
We actually saw quite quite a good order growth as a result of that.
And I want to point out that it is difficult to model.
Call. It the end of Corona and of course, we are still on the <unk>.
Endemic but at the end of Corona for food delivery basically means.
Restaurants, reopening, but also offices reopening.
And we are currently in a situation apart from Holland, where the restaurants are open.
And in which most of the offices are closed and the offices of course is quite a big segment of our business not only in markets like Manhattan.
Israel, but also a market in which we are perceived to be a consumer brand. So of course, we have a lot of office orders.
That makes it difficult for us to <unk>.
Model, what happens after a pandemic subsides or basically after restaurants reopen.
We've done our best for.
The fourth quarter.
We assumed that we would have seen a regular order pattern from let's say October onwards, we did see that in December we did not see that in October and November .
We assume that that is because of the reopening.
But again this is the difficulty about modeling that now to your question about this year what is not difficult to model is just basically the cohort model. If you know how many customers you have if you know what the order. If we can see is you can actually quite well model in a regular situation absence of Colgate what the business is going to do.
And we are quite confident on the on the target for this year now we have also received comments from from <unk>.
Analysts before that it is a low target, but we are also quite confident that we can achieve.
Yes.
I should also notes that I would expect that the whole sector slows down in Q4.
And also of course, because the comp in Q4 now if you look at ourselves I think our growth last year ex Grubhub was 57% for the quarter.
So obviously also there.
You see that the comparable last year was was.
Challenging, but still also the beginning of its all where we thought we would actually make it in you remember we changed it upwards it was lower.
Upwards, because we were actually on that trajectory.
Then.
The last question that you asked was around marketplace.
We'll probably have seen deaths.
The growth of.
Delivery versus marketplace, especially in the UK.
These are growth gap is getting smaller which is logical because obviously with a lot of restaurants that werent on the Justice network.
We've also of course come out of the pandemic more or less.
And we would.
Suspect at some point in the future to growth is going to be the same that we will take some time before that starts to happen.
But we do believe that that's going to be the case.
We also still believe that marketplace will grow.
And there's many reasons why there are differences on the pandemic or differences between the quarters, but we still believe that marketplace will grow.
So I think that covers your question.
Great. Thank you.
And the next question is from Mr. Andrew Ross from Barclays. Your line is open. Please go ahead.
Yes. Thank you good morning, everyone off book two on the U K.
First one is on profitability it sounds like it's improved quite a bit in Q4, and you are pointing to that improving in 2000 and can you just give a sense of what that means.
Absolute numbers and kind of how close to breakeven in the UK on a run rate basis second question's on London.
If youre pointing to incremental induction here in 'twenty. Two can you just give us some color as to what.
That investment is and in particular the strategy for signing up for <unk>.
Appendant delivery restaurants in London. Thank you.
Thanks for the question.
Well actually I don't think a surprise anybody if I say that we are actually quite close to breakeven in the UK.
I should also.
And pointing out that we don't believe that we are done with basically creating a bigger gap with the competition in the UK. We believe we have a good opportunity to increase that gap further and therefore.
You should not assume that we're going to have a high profitability in the UK in this year.
We are going to invest whatever is necessary to make sure that we are going to be by far the market leader in London that has our top priority. That's also where the profits that we could have because obviously the trajectory is towards profitability in the UK, but we use that profit in a wise way and we think that that is going to be.
So to our EBITDA in years and years to come so we are again investing that.
Benefits into into the market and it's going to be significant investments. So don't think of the UK is a profitable market this year.
And of course, if you are tracking US you will see that we're closing out but don't think of that.
Then regarding the.
Inventory in London, we're making progress on.
Adding local heroes, who are making progress on <unk> asked US is that we have made progress in last year.
It is a slow process because sometimes there is exclusivity contracts that we need to break.
But we are moving in the right direction. We are also growing that business.
And we've done significant work on the quality of the delivery network.
Every time, a better quality of services better cost is lower.
Income is higher.
Of course also the ticket sizes went up I'm sure. That's a lot of people are tracking down.
On this call.
So the quality the quality of the business is just much better than where we were and we will continue to grow from there and we'll invest a lot of money.
Thank you.
The next question is from Mr. Joseph.
Credit Suisse. Your line is open. Please go ahead.
Excellent. Thank you very much for taking my questions.
So firstly, you mentioned ongoing discussions with potential strategic partners in the U S. I don't think don't expect you to reveal too much but can you talk about what such a partnership could entail and what youre looking to gain from any partnership any color you can give there would be great.
Secondly that seems to be a bit of a shifting perception in the market.
With regards to.
Profitability rationalization et cetera, and we've seen some of your competitors shift strategy on the back of that can you talk about if it impact your strategy or your thinking more broadly and give us an updated view on portfolio rationalization. Thank you Tim.
Thank you.
Regarding the.
Strategic partners.
We are actively looking for them what does that mean it could mean anything to be quite honest with you. We are open to anything that makes grubhub stronger that makes just your takeaway strong.
The.
Obvious thing we're looking for is access to a large consumer base. That's the most important thing for us, but again, we are open to.
Any sort of partnerships as long as that benefits the business.
Regarding your.
Your question sorry can you repeat the second question portfolio management, I don't think that yet.
This is the second question was sort of firstly, we've seen some of your competitors.
Strategy with regards to portfolio growth and profitability.
Yeah.
Yes.
Good.
Yes, we also of course see deaths.
At the same time, we don't seem to get any credit for the fact that we own most of the profitable for delivery businesses on the planet.
Yes.
It's likely going to be a shift you see some rationalization in the market you see players leaving markets.
They are still players in markets in which I believe they have a chance to position so I would.
Encourage them to leave those countries, but they are not leaving those countries. Thus far we.
We do expect some of that to happen in this year if the current rotation in our markets continues to happen.
I think that's going to be beneficial to us because we've seen that in Spain.
<unk> leads the country, obviously, you grow a little bit in market share.
Sure.
That's I think what I can say about that then if you.
Look at portfolio management, we've always looked very carefully at.
We can achieve what we need to achieve in the market and that's always in our case, it's never GDP growth.
It is always scale and profitability.
Or is that <unk> analyzed all of our businesses. They all looked like that whether we can achieve that.
In a proper amount of time of course that differs from market and it might be that we feel that that takes the longest vertical markets.
In general most of our markets have the same sort of profile as the UK, Germany or Holland.
There's a lot of discussion about <unk> I think very similar to our Dutch business, our German business or our U K business.
Large market based components with a large logistical business as well so that's the sort of business. We're looking we're looking at and we have no need to be in.
50 countries in which we cant reach that.
Need to be in a limited amount of countries in which we can execute that program.
Excellent. Thank you.
Okay.
The next question is from Mr. Joseph from Jefferies. Your line is open.
Thank you.
I have three on the page, but any opportunity.
So it looks like you.
Did that.
Around the table with some reporters before this call.
From Bloomberg headlines, indicating some new movement around so.
If we could get an update there.
And a comment as to whether your price expectations have changed.
Now exiting the market.
And then secondly, coming back to the U S and partnerships.
Are you emphasizing commercial partnerships or are you all three imputing here.
More capital partnerships, if that makes sense.
Thank you.
Thanks, I'll take the last first.
We already are good department of commercial projects. So obviously, specifically the strategic less financial partnerships.
Yes.
Then the first question regarding whether the expectations for the price change.
Well to me not really because in the Indiana I do not understand full stop why there are small players in marketing, which you have a large player that doesn't make sense.
It doesn't make sense, if you understand the network effects include delivery so for me.
The fact that.
Delivery reliefs, Germany, and Spain, or your beliefs, Austria, and Brazil in Hong Kong, that's completely illogical to me so it doesn't really change.
My expectations of value of a decent food delivery business it might be.
Other people's perception of the value of these businesses, but I don't agree with that perception. So for me thats a bit of a different different topic I do believe that.
<unk> is one of these countries that assume.
Germany is now the most profitable for delivery website on the planet, we're very proud of that.
I food.
Dan Yes of course ticket sizes are lower but it's much bigger.
Then our German website and it has it has a slightly worst market position even after <unk>.
We believe.
And then are they not.
The German market position, but these are the businesses that are worth a lot of money in the sector I know that the market disagrees with me on that but this is my belief and therefore, if people want to own that stake they need to pay for it I'm also a reasonable person I understand of course that valuations in the sector window.
And is there any change in deferred tax.
Referencing the Greenberg onshore we are still talking to multiple players.
Understood. Thank you.
The next question is from Mr. <unk> Kumar.
Your line is open. Please go ahead.
Yes, hi, good morning.
First question would be on the U K.
When looking back at the discussion last quarter, he basically said.
We grew the U K platform quite significantly.
We are now.
Slightly focusing more towards improving the quality of divisions in terms of profitability and what have you.
And then included amongst others.
Lowering or increasing the minimum order values, increasing some delivery fees, most notably on the on the acute resource.
So why is that decision to basically tech you take the.
The gas pedal a little bit in Q4.
<unk> taken.
At this particular point in time simultaneously you also mentioned during this call.
We shouldnt be too hopeful about.
Let's say profitability in the UK in Scotland.
Reading between the lines I think you will go to <unk>.
Kris.
Your competitiveness again.
Okay.
As you are looking forward to the increasingly gap with the competition. So how should we compare kind of what youre doing in the fourth quarter to basically what you're telling us that youre going to do it.
'twenty two.
In terms of market share.
In terms of.
Market share gains.
And the second question we have is.
Let's say on the marketplace for us.
Delivery.
And with the increase in minimum order values and.
Also the increase in delivery fees.
It's basically.
I would say quote unquote hurting your Qs are.
Business and it should in fact be two shouldnt extended <unk> four for the marketplace business and.
Although your marketplace business was doing quite okay in the fourth quarter it didn't grow as fast as the <unk>.
Every space so about the convergence in terms of growth rates, how many quarters.
Do you think you still need before marketplace I don't believe we truly become a blender thing again in terms of growth rates.
And then lastly.
You mentioned.
Your profitability is going to improve from 2022.
How should we look at timing thereof is a gradual thing where you basically.
A little bit last night.
In the first half and then already profitable in the second half or should we basically expect you to move towards breakeven point, and then press the Spartan commercials.
Possible.
Okay.
Yes, So let me take that last question first.
We have done.
<unk> done a number of things that materially increase the basket.
Income and efficiency of our logistical network.
And actually a lot of the work that we've been doing.
Which is on a level that we are already.
Doing quite well as opposed to the target that we set for this year. So we have a good base to start 2022.
And we will try to improve as quickly as we can but I think it will be roughly a gradual regrettable improvement across across the year.
From the base of course that were already asked because.
Our <unk> margin is actually lower of course than the GDP margin sorry, the DTC margin now is lower than what it was for the full year, because we are improving quite quite rapidly.
So I hope that covers that question regarding <unk>.
Q4.
You seem to be treating this as a contradiction. So let me let me be very clear at wide growth in Q4 was the growth that we've seen in Q4, because we anticipated the growth to be higher because we fault that we would see a normal seasonal pattern and we did see that in December we did not.
See it in October and November which is out of the ordinary but don't forget we're coming out of a pandemic and that moment of coming out of the pandemic is very difficult for us to model because it doesn't fit in any model because it is a pandemic.
And therefore.
Therefore, we are in a little bit of a schizophrenic situations in which the restaurants are open but the offices are closed and that is creating somewhat out of the ordinary.
Trends in the season.
And therefore, we simply did not were not able to catch that increase that the increase would only happened in December .
Now if you compare that to last year remember that we were all locked down so restaurants were closed offices were closed and.
Therefore also the growth last year ex Grubhub was 57% so.
He was a very difficult comp in the first place for.
For us to make in the in the fourth quarter, but we actually we actually get at.
Because our base level and this is the more important thing about why we can be certain about 2022. The base level is just much higher now our order frequencies are much higher the user base is much greater and we're adding more new customers than we did before corona because we are modeling based on the situation.
For Corona and that makes it difficult because.
You can model the Corona situation because we've been in there for quite some time you can model the situations before corona.
This is kind of a hybrid and which will not entirely normal and.
We use those cohorts of course based on a situation, where it's grown it wasn't there and we put in a higher frequency.
Our larger user base of about 100 million people right. So we are just operating from a higher base will continue to grow from that the benefit from that is that obviously if restaurants are open. They can't open again, so you won't have to say the same sort of.
Cliff from the kroner growth into a normal normalized situation and.
And the benefit is also that offices will reopen at some point, which should be beneficial to us and in case Lockdowns happened is of course also beneficial we're not assuming that they will happen, but that will be benefit of course to delivery.
Business.
Then back to your question around.
Around what we did in the network.
Remember that we were growing 700% in the UK is still in the quarter, 100% and logistical network here.
Here a lot of about so-called superior growth of logistical players bear in mind, we're growing much faster in that segment than the logistical players. So this is huge growth.
And when you are on the situation of your used growth youll not per se efficient. So what we've done we've worked a lot on the quality of the network the quality of the income the quality of the of the orders et cetera. Wow. There was an overall sector slowdown that doesn't mean that that slowdown has caused by us improving the network.
As you can see it's a 100% growth in the logistical network.
Still.
So it matters, what we're just doing is increasing from a very high base with a particular focus on London. This year.
Now if competition eases, that's going to be less costly for us we're not assuming that competition eases and we're just going to do everything that we can to be by far the market also enrollment because of course in the U K. We are but also in the city of London, which we now have about one third of the market.
Then.
Let me trying to figure out what your second question was around the.
The market place orders a fee versus delivery, whether it was an impact of the increased delivery fees.
Oh no no.
Again thats related to what happened in Q4, the overall market slow so it doesn't really matter, whether its marketplace or logistics now obviously the gap in growth pace became less also again because of restaurant openings I hope that makes sense.
How would you look at the close you already mentioned to the outlook.
But GDP growth mid teens, yes.
Is that still predominantly driven by delivery or.
Should we assume that the growth rates between marketplace and home delivery already start to converge.
<unk> 2022 .
No I think that delivery will still grow much faster than.
Then marketplace.
But the gap will be less pronounced because obviously dilip.
Delivery grew to 700%, it's very difficult of course to grow marketplace in a business that is already around four or was it.
15 years at the same sort of pace, because obviously you already have the orders you already have the restaurant.
But yes, it's not like we're adding another Mcdonald's this year so.
That of course is a big difference also in growth base.
Hey, guys.
Last question for me.
You probably noticed the dose.
You debate going on Twitter about how to measure market share spin.
We have we have.
Google trends data, we have web traffic app downloads, we have for our credit card data and we have so you get the downside, which is essentially a panel with receipts Jonathan.
<unk>.
Can you educate us once more on why you think.
Certain metrics are better than other metrics.
And.
How to basically measure your market share.
Sure.
Across the platform.
Objectively loved it.
Some other people do just on management estimates.
That's helpful.
Okay educate us once more on the pros and cons of.
Each metric.
I would caution you to take so much as vice versa.
But apart from that.
Look the easiest way to compare companies is looking at.
CTV revenue and EBITDA.
So that's.
That's what I would always then use and if you want is growth pace.
If you want to get data on companies it doesn't matter, whether it's for delivery or anything else.
<unk> two other companies if they are not telling you because that's been essentially essentially the case.
Well, we have always seen is that credit card data. If you have a big enough sample and if you take that credit card data in a country in which people actually pay with credit cards.
Absolute closest you will get to market share.
Now remember that if companies also offer white label. It will show in the same way in the credit card data. So if people have a 10% white label Sheridan.
<unk> appear in the market share data as being 10% bigger.
However, critics of our data is very precise but in most of Europe people don't pay with credit cards, and therefore that data is either unreliable.
Or not available because of privacy laws and as we all know the Europeans are a little bit.
Difficult about privacy and most countries there is no credit card right.
And then if you look at similar web.
Similar web is actually almost always very close to market share.
And then people in place that will tell you all but thats because just the takeaway I guess all the orders via the web site and other people get them filed yet that's just nonsense. The ratio is almost the same for all the players.
We have seen data from logistical players actually where the west share is bigger than our web share why because those players get more orders from offices.
I would assume always at the ratio is roughly the same but even if the ratio is not the same as slightly different.
Not going to be for.
One play a 50 50 and for the other ones 70 30.
It's going to be 50, 50, and $51 50, 49, that's sort of so you will get very close to two.
Through market share from the similar web data because of that region and in some cases. It actually is an underestimation of us because our conversion is higher usually because we're much bigger than everybody else and most of the markets in which we operate of course, the bigger you get the better your conversion I hope I don't have to explain that.
If you look at Google trends Google's fence.
It is important to understand always if you're looking at data what am I looking at so if you were looking at Google trends you are looking at keywords that people type into Google voluntarily nobody's, forcing them to type in just eat or one of our competitors' brands nobody's, forcing them to tap any Fernando this is what they do buy their own volition now why would those people do.
Debt to find your website so.
Something about what new users do and even if people order by App stable still type in these keywords in Google It is by far the best way to find anything on the Internet and I Hope I don't have to explain that to you because you will probably know what Google does work.
So that's the way that.
You can determine roughly not exactly roughly when new customers go in the country and then still it is important to remember what youre looking at Youre looking at new customers. So if you have an incumbent that is.
That has 50 million orders remember that if somebody at 50000, new customers in a month I mean take a calculator, it's going to take a long time for players to overtake a $50 million quarter, Brent it's actually impossible at most in most cases.
Now then through the creative Twitter people.
We have not in any case found any relation between <unk> and.
And market share not at all never.
The App share is just <unk>.
Basically downloads of apps again remember what youre looking at downloads of that indication you happened to run a taxi app you can push people to download an app.
<unk> you.
Have your advertisements in Google for instance, connect suite App you will see that you will have a lot of app downloads abdominals abdominals theyre not users, they're not people using the app.
Downloads of apps.
And there wasn't even a period in Germany in which everybody was investing in that.
And the conversion was super low so app download say nothing about marks yet whatsoever, there's no connection in any of the marketing, which we operate if you don't believe me look at that and compare it to things that you know so I look at revenue look at.
Look look at order size in markets in which you have both the.
Data and the actual data and you will see that there is no relationship between the two now to the more creative monthly active users. We don't even know where the data comes from we don't have a technical way of explaining how that data gets into those providers and there's certainly no zero <unk>.
Our relationship with market share.
It doesn't mean that it kind of.
Accidentally be the same as market share. It just means that there is no relationship with market share.
And maybe even to add to that I mean.
Integrals, indicating daily average users if you take for example, a market like Poland, where we actually have published numbers. So basically people have to partners their accountants.
And then you look at the daily average users.
It puts us at a market share of around 10% to 15%, but we know actually in a market like Poland, where multiple times larger than the competition.
Ali I mean undoubtedly also in Belgium, we are number one but even there also like the IRS daily average user sees us.
Similar rate of 10% to 15% in one of our competitors would be like three or four times larger which undoubtedly it doesn't make sense for Belgium, either and similarly in Spain.
While it may be even the androids daily average users.
Potentially more or less in line.
<unk> market share. There also is only around 10% to 15% on our end, which doesn't make sense.
I would say everyone agrees would definitely number three player.
So these are just a few examples.
And I guess it was indicating.
Frankly, I don't have data together and it's also thousands match.
The actual numbers, we know in the markets, where we are in and what we have experienced that.
For market share data is going to work with the most accurate and for new customers, who are trying to whats more et cetera.
And then just to be clear.
Hey, guys.
Doesn't really matter to us. This is this is data which can be helpful. But I think it's very important to everybody realizes what they are looking at.
I mean, I've, even seen an analyst report that SaaS.
We have 50% of the German market and everybody knows that's nonsense right. So it's very important to look at that but please I mean, just used the actual size of the companies because we published our numbers. So you can look it up.
Great very helpful.
Last question is for the orders can you send us the pro forma numbers based on the new disclosure. So that we can update our models for 2022.
You will get that in the full year results.
Thanks for your questions.
Thank you.
Thanks.
The next one is from Mr. Shneur.
<unk>.
Your line is open. Please go ahead Sir.
Alright.
A quick question.
The first one in a market where you want number one Brian .
Portugal Miami.
Can you just talk about do you necessarily need.
Got it wrong.
Slightly profitable.
Marketplace businesses.
Even if they've been challenging the number one.
And then the second question is average order value.
Islands in Germany are still up.
Mid teens.
Well they were prior to the pandemic.
We've seen that normalize so I'm just being stupid here.
What's driven that higher.
Higher delivery fees without big basket value.
And I guess, how sustainable it is.
Thanks.
Well look if you're if you're comparing figures you have to look of course at the com.
Sure.
Generally generally we know now that our base is much higher I am not even sure which user number we started the pandemic I'm looking at Jos.
Yes.
We have far more new users as far more users in total now in the network than we had before before Corona.
I think you need to look at absolute numbers and look at.
What level.
We're predicting growth because we have a growth target out there to understand where that's where that's going.
And yes in most in most markets, we see elevated growth but of course also the comps.
Especially in Q1 and Q2 are more difficult.
They are comparisons with the highest of the Lockdowns.
Definitely we take that into consideration as well.
Your question around.
France, Portugal and Romania.
Yes. It is true enough number one in those countries. Obviously, we are not.
If you believe our philosophy and maybe you do maybe you don't but we believe it.
You should not be.
And number two in a smaller market.
The reason for that is not to say.
Does that automatically then.
It does.
That doesn't translate into into into good economics, but as it relates to look at this more is that you need scale in a market.
And for Us.
We have scale in the Dutch market.
We suck all the oxygen out of that market because theres only a limited amount of new uses available and you are all after the same new users and obviously, if you're a much bigger.
You are also in clients to get most of the new users and therefore, it's very difficult slash impossible for anybody to offtake, such big brands and this is not only food delivery youll see it in real estate in a couple of other.
Other models. So it's actually it's actually very difficult to to get past somebody so its more about scale, then being let's say the market leader, but in most of the markets that are smaller than the U S. This leads to their being one big player because there is no more oxygen in the market for anybody for anybody else.
Now transport to go and Romania, obviously, we are trying to get those businesses to a number one position, but as I said it.
It is important for us to get that longer longer term.
I need to understand that I've been in the business for 21 years and I've seen I've seen most of the competitors disappear for most of my markets and sometimes they come back for like six months.
That's a different topic.
So the current status quo is not always what you're going to find in these markets in let's say two years.
But of course, we look at the viability of markets.
So we don't want to we don't want to end up in a situation in which.
In which we are say a number two in one of these markets and loss, making and going nowhere right.
Not the intent of the exercise.
Thanks for that sorry, just to clarify the third question was about average order value.
And then Jim many being still quite a bit higher than where they were pre pandemic. So just trying to understand okay.
Those orders are higher probably because we have less office orders.
If I need to guess.
They are not higher now because of inflation, we do believe that they're going to buy hired this year because of inflation, because usually restaurants increased pricing for the first of January of course, we operate off of a commission base.
Okay. Thank you very much.
The next question is from Mr. Bernard.
Your line is open. Please go ahead.
Oh, Hi, good morning, everyone. Thank you for taking my question and then I'll just stick to Q I just wondered obviously, you launched and not a new partnership in the rapid grocery delivery space, who say.
You've sort of dark store concept in Canada.
Well to give some sense of what proportion is.
<unk> revenues are going to be made up of rapid grocery delivery in markets like Canada, and the U K why youre more progressed in 2022.
And given all the discussion about how Reits dynamics has been different you can obviously within Pi.
Can you give us just with what proportion of all the market.
Market like Israel, but we will need to be.
Used to be from offices to at lunchtime.
Okay, Let me take the second question first.
We.
Estimates that in a normal market in one of our normal consumer brands, so not Israel, where it's like 90% or 95%, but in a normal consumer market. It's around 25, 20% ish of the business.
But don't forget let's say, we can all go to the opposite again, we might order less at home. So I don't want to get overly excited 15, 20, 25% figure, but that is usually what we see in now I mean now exited the offices are.
<unk> closed almost everywhere.
Eagle in our newsroom you can also find the footprints reports, which provides you a little bit more details even on a country basis. So I would encourage you to read that one.
Then your question around <unk>.
Grocery delivery, we assume that Canada will be.
I'm not going to give you a percentage, but there will be further along than the UK.
Because we already do quite some convenience grocery in the.
Canadian market, because we worked with a bunch of these.
The supermarket and we have our own solution.
The encouraging thing about Canada is that the first stores are doing hundreds of orders a day.
Looking pretty good.
In the U K, we have now announced two deals there will be more than it will be a slow start I guess for all of these brands, but we will see quite some traction.
<unk> by the end of the second quarter.
Yes, maybe to add on the Canadian business here.
We're doing thousands of orders per month and the convenience.
And we've also indicated in the press release by the year end, we will be giving access to that product.
To about 70% of our active customer population.
So we can cover the majority of.
Of our consumers in Canada by the year end.
Yeah, Okay. Thank.
Thank you.
Thanks.
The next question is from Mr. Robert Joyce Goldman Sachs. Your line is open. Please go ahead Sir.
Thanks, very much unless they can three.
Just on the London comments, increasing competition that I guess can you just give a bit more clarity I think.
Rice's, so delivery fees and minimum baskets helped a bit a big funnel of Vouchering, but just wondering what increased competition investment into London actually looks like next year second one just on the 15% or mid teens GTD guide.
Much of that is.
Vantage points of that is going to come from grocery quick commerce and your expectations.
And then the third one could you just give us an update on grubhub.
I guess on the legal challenges over that okay on this strategy.
Just give us an idea of whether you expect group hopes to be close to the 15% mid teen GTD group guidance, you've given for 2022.
That group hopes to get close to that thank you.
Thanks.
Regarding what that means for.
London, London is a market in which we were basically nonexistent in which that.
Now turn that into a three player market.
And a lot of the work we're doing in London is adding inventory and exercising that inventory. So we will do a little bit more of that obviously, but we have good traction enrollment.
Again, we have thrown out these lower ticket orders because we want to improve the quality of the network and make space for further growth because again, 7% of the growth is fantastic, but part of that growth is not beneficial to us we need to get rid of it.
So we actually have some space to further increase so far.
Part of it as more of the same part of it is a little bit of additional pressure.
On the aluminum market.
So what does the additional pressure look like sorry, I was trying to understand what is it it is more marketing more salespeople.
More restaurants on the network and effort into grocery obviously, that's an important piece of the puzzle.
In London, because in the market the.
The market share is now roughly one third one third one first but don't forget that our competitors have grocery we don't so.
We have an opportunity to add by adding even if its only 10% grocery.
By having quite some some what's your guys' core market share.
Again, a different opinion on it but if you want to measure it that way then we'll be able to increase our market share because of the grocery component as well.
Then your second question was around the growth being mid teens and then both the grocery contribution.
Okay.
I don't think you need to look at the grocery is material in that in that number.
It is it is something that as you offset for instance, and capitalized.
But big.
It might be big for us, but we're also not taking taking it into consideration too much because we don't know how big it's going to be for us and it depends of course on when we are done with the contracts.
It depends also on the on the market right. There's a couple of.
Very large supermarkets with talking to so obviously, if you get those online you have higher growth. We don't want you don't want to.
To put too many things in our growth figure that we are not certain of whether we are going to be able to add that.
Yes.
Then.
About grubhub we're.
We're doing a lot of work of course.
The legal situation in some cities now the fee caps have been resolved in the sense that.
For instance, it's allowed to ask for additional promotional promotional vies was basically solves a problem with the fee caps in those cities not as the bigger.
New York.
New York issue the incoming marriage pro business now maybe people that are another American that sounds weird, but.
And in any event, that's likely a good sign for us in New York, but we still of course have to go through both talking to the city and going forward to support phase.
Strategy wise as we said we are building up the inventory, especially in the bigger in the biggest cities. So we are improving the business, but we also don't believe that that's going to just fix everything in the U S. We have a lot of work to do also in terms of finding strategic partners and we've said before that we are open to any sort of solution. That's good for grubhub.
And thats good for adjusted to adjust your takeaway and Thats, a very broad array of options for us.
And just in terms of your growth expectations for the year, how does it compare versus the overall group guidance.
The U S will grow slower than than the rest of the company.
Reason for that is that we're focusing most of the cities. It's not so difficult for us to grow outside of the cities because theres a lot of outside of the cities in there.
In the U S. But we don't think that that is the right strategy for Grubhub.
Thank you.
Our next question is from Mr. Mark <unk>.
Your line is open. Please go ahead Sir.
Yes, hi, everyone.
Quick questions from my side.
It goes back to the previous question on officers.
How ready is takeaway pay in the different markets and what I'm just office to find out kind of the incremental order number that should come from takeaway pay could you just comment on this where were you here, we are and what kind of like ideally incremental order number we should maybe.
Sector and because it doesn't seem the consensus model.
That whole process.
The second question is again on <unk>.
Okay marketplace.
Can you just.
To meet.
Why why you what makes you.
Confident that the growth is going to accelerate I understand that the mixed effect between delivery and marketplace.
Turning into marketplace favour.
Given given the <unk> will be probably less SNS deliveries, but what makes you think that marketplace starts to see accelerating growth when reopening environment.
Yes.
Firstly to takeaway pay.
Question.
The country in which we have most traction for take rate is actually Germany.
Which I guess is great. The only thing is we do not know when these offices are going to be opened so it's also not in our assumptions. We just don't know we know thats in particular in Germany, though.
Here, we still have maybe 5% of people, 10% in Germany down entirely empty. So we don't we don't know and I'm not going to put anything in our budgets.
We are not certain about we.
We do have signed up a very large number of <unk>.
Corporates in Germany. So we are very ready for reopening, but again I don't want to speculate on windows right.
<unk> happen.
Then regarding your UK marketplace question. So yes. There is there has been significant mix effect of course in the periods in which we are adding more logistical restaurants that marketplace restaurants.
Pink.
Best way of explaining why.
Because some people fear cannibalization between marketplace and delivery and the best way for me to explain this.
Is.
That there is no competition between the Senate bar in the London, Sydney, and a kebab store in York and I hope that that comparison makes sense.
Most are often not always there might be some conversation somewhere but often not income petition with the charter and the kebab store in New York, we'll get more orders from us because we are growing we are adding more customers, we are adding more restaurants, and our network effects become better. So this is why marketplace grows and the whole.
All thinking that for some reason somebody that lives in Europe that all about.
<unk> is going to order a salad in the London City, sorry, I don't follow it.
Isn't it more about this question York or maybe not yours, but and then tier.
Tier III ordering for Mcdonald's.
Yes.
Assume that.
Those people are ordering from adults every day and as you know our order frequency is free.
Mhm.
So deep.
Look I mean, I'm, not saying that there's never any cannibalization, but the price point Mcdonald's Bad example, given price points, but the price points, usually for marketplace I'm not talking delivery fee I'm talking food price is much lower than a logistical restaurant.
And this is why they usually do not compete and this would be the same to me is you're saying that Mcdonald's is competing with a logistical setup box. That's probably also not the case right. So this so this is very important to us and this is why we have also added all these logistical restaurants in Germany, and Holland et cetera.
And this is also why we have that choice for the consumer but in the end as the consumer that pizza restaurant and in some cases, it's Mcdonald's in some cases it took a vessel.
Super Thank you just on takeaway peso.
It's up and running it just really depends on people coming back, but then Doug a market like Germany. It will kick start.
Yes, basically yes.
And okay.
We're very hopeful because we don't assume that people are going to be back in the office of today's thinking three days on average.
India offers free.
Three days and of course, you have to closer office contained because you can't run an office confirmed basically free days occupancy right. So.
We do believe that actually the closing of a lot of the catering options in offices should help us up.
Yeah makes sense, thanks, a lot.
Got it.
The next question is from Mr.
Bank of America. Your line is open. Please go ahead Sir.
Okay. Thank you very much.
Three questions, but one is really quick so hopefully we can we can.
Squeeze it in.
First of all how does Q1 'twenty to compare to your 'twenty two guidance of mid teens GMB growth given the December momentum would you expect to have sequential growth in <unk> in Q1, 'twenty two versus Q4.
The second question is are you able just to single out the investments in grocery how much of a drag is it on 2022 EBITDA and.
And certainly about <unk>.
Expansion of material closing the gap on expanding let's say your market share in the U K can you just give us the size of your rider fleets.
UK versus competition. Thank you.
Thanks.
Let me take the last question first our logistical business is almost the size of the number three player not entirely so it will be a little bit smaller than the number three player.
And I think.
Would be lets say two thirds of the number two player and that's only to those disciple bit of our business, but of course still growing 1%. So we're hopeful that we can overtake those guys not to say the amount of <unk>, but in the market.
Orders that we do.
For logistics.
Then youre asking about the grocery drag it's important to understand that we deliver grocery off the back of our delivery network. So it's the same economics.
Yeah.
Yeah, a little bit of a higher.
So actually <unk>.
Economics are usually even better than two delivery.
<unk>.
That having said the Canadian rollout of the hubs of course that cost money you have to install the hubs, but again, it's the logistical network that we already have that's already apps.
At maturity that we can use to deliver the grocery so we do have to invest in the hubs, but of course, nothing logistical network and the logistical network in Canada is very it's very profitable so theres no material drag there.
The drag is the same as the rest of the budget.
One of them.
Then the first question.
Regarding the mid teens.
Growth well, obviously also in the quarter I would have liked to have seen higher growth in Q4.
But also that we would meet the target of 2022.
Usually usually Q1 is better than Q4.
Okay. Thank you.
Okay.
The next question is from Jpmorgan.
Your line is open. Please go ahead Sir.
Yes.
First question is on the.
On the EU Commission proposal.
You are happy with it that with the level playing field.
But could it not be also incremental benefits for you because you're actually your business model is already fully geared to dish.
Petition as to as to change.
I'm not sure how easy that is to change that.
It.
Is it a period that you that you can.
Some extra sure.
Second question is on.
Inflation trends that you're ready to ship it talks about the average basket value order failure.
What about your rider cost.
And how will that compare to maybe youre playing field versus the competition in <unk>.
Will you pushed it to the to the end consumer.
And then a third question.
We've seen some consolidation in the industry.
How do you look at it and what do you think the role that Jeff should play or is it now a good time to be to be on the sideline.
What happens there.
Thank you.
So those questions okay. So.
The EU law look I think it's important to understand that.
The scrutiny on the.
On the.
<unk> modeled on the on the freelance model.
Is already ongoing in most of the European countries.
In most of Continental Europe . It is forbidden to use three launches that doesn't stop our competitors to do it right. So thats obviously helped.
<unk>.
And you see that the response.
As usually in terms of fines and in terms of claw backs of taxes, and social security payments that always happening behind the scenes I don't see any of our competitors reporting this but I know it's happening because we talked to the same.
<unk> so.
That's already happening so the EU law on top of it is just a framework.
Turning around the burden of proof, which makes it easier of course for the government, but also for it.
For employees to say, well, sorry, I am an employee to be need to be properly paid insurance et cetera.
So it's not for us we're not.
<unk>.
Okay.
We're happy about the law because it will finally close down that loophole off of being able to basically push outs.
<unk>.
Texas and because thats what it is right. This is just the delays textile essentially four for our competition.
I think it will not per se leads to the disappearance of.
Competitors in countries in which they are big but in most of our countries theyre actually small so.
So I do believe that all of these competitors, whether it's because of the market rotation or whether it's because of more scrutiny on on these raws because if you look at Brazil is a very good example.
Either announced or the one day after.
Brazilians introduce a law about curious all right.
You could say Oh, they left because it was such a.
Compared to the situation while they might also have left because of the change of.
Of the law now in Europe again, this is already illegal.
It will be helpful to us.
But it's not something that we need.
Great.
Play a leaf spine, Brad because we grow because of that.
It's not something that we per se because we are.
In Spain for instance were very big.
So it doesn't really matter to us too much that a player that has a couple of percentage of the market.
Then regarding inflation.
It is.
Very beneficial to us because we have a model that is not only delivery, but it's also a marketplace and of course, we're very profitable marketplace of course, if crude prices rise we make more money.
Part of our business of course, we employ curious yes wages go up we need to we need to pay for that but we will of course in the <unk> charter.
<unk>.
So we don't we don't think that that's going to be an issue. We think its going to be a hurdle because that increases costs for our competition more if they have to change my three loss model to an employee model because in some countries.
The cost difference is quite significant especially in southern Europe , if people pay a couple of euro per drop and suddenly they need to start paying 10 Euro spur per hour. That's a big difference of course and that changes the economics of these space considerably. So at least they will become smaller in some case stable disappear.
In terms of consolidation yes.
We are very picky, we're very picky about.
These these large scale businesses that know how to create profit.
And in the end.
<unk> is nice, but if you have a very high GTP in 25 countries and none of those countries are ever going to be profitable.
Sorry.
<unk> not interesting to us what's interesting to us are positions such as.
Even if the smaller take.
Germany, Germany is a great example, Hollywood is a great example of the U K is a great example.
Canada is a great example, but also Poland is going to be very profitable. It has exactly the same characteristics as Germany and Holland, It's earlier days, but it has the same characteristics, but thats.
Not the case in all the countries. Some countries, it's very difficult to get to profitability. Other countries are too small in some countries, there's too much competition for anybody else to be profitable.
So we are very picky and therefore, the chance that you will see us participate in small scale consolidation is relatively limited.
Larger M&A I think our further market consolidation yes.
We are we are the most important player in this part of the worldwide. So I.
I think thats likely to happen at some point in the future.
Okay. Okay. Thank you.
And our next question is from Sofia.
Deutsche Bank. Your line is open. Please go ahead.
Hello, everyone.
Is novartis, Linda and good afternoon can.
Can you please follow up on <unk>.
Our performance on the BOP commissioning activities.
Finally in terms of activity.
Jacques.
Can you answer.
Feedback from it.
Ruby giant diblasi.
I believe you said.
Thanks good.
Good afternoon.
And the second question.
In the interim.
Can you start getting a more advantaged Huang <unk> Huang will follow.
The end market.
Prolonged warm with Andrew.
For the country, we've got in terms of competitive environment.
Alright.
Thank you.
I literally.
Understood.
Little bit, but I hope that George.
I think the last question the line is bad Sylvia.
I think the last question was about what exactly is in southern Europe and.
The reasons for the <unk> as I say, the New Zealand is with southern Europe .
Okay.
For the last for the last.
Most of it is account C rules. So we have to do it it's not that we want to do is to say that we have to do it.
Obviously.
We try to bundle countries in a way that we also are organized in the business.
And.
What is important is that usually these countries shack characteristics right. So if you look at the northern European segment. Those are usually dominant positions that are either highly profitable take Ireland, Ireland has been in the of course, the nylon segment, but take take whole loans at Germany.
Countries like Denmark take Poland, that's that's moving up there as well so those countries are very similar and Thats why they are in the same in the same basket because for instance, Poland used to be in rest of world.
Which.
Hi, it's Poland in Poland is one of our best countries. So it doesn't make too much sense.
Southern Europe , and Australia, Luke Southern Europe by itself is too small these are smaller food delivery markets just altogether, there's just less food being ordered.
Southern Europe .
Also in our company they are smaller and they still require some investment because obviously competition is higher sometimes in these countries and we still have a long runway to get to let's say, 30% 40% of the population.
In those places so you have to invest quite a lot of money.
Why are Israel, and saying this isn't in there. These otherwise second would just be far smaller than the rest of the of the.
Of the business right I mean, if you look at the end.
Northern European segment is huge North America as you. Its UK Ireland is huge so we have to put it.
Put it somewhere and if we would have done it in a separate way then yes, you get the Israel and Australia segment, which also doesn't sound very logical.
So thats why they are in there on the first question I think it's about the grocery partnerships, where we can share anything on the agreements profitability, whether we use exclusivity.
And the network effects between grocery users.
Yes, especially in Canada, we have quite some good data on use it. So we have more people and maybe you can talk about it.
And in answering but we have heard some people are using both the grocery and increasing their frequency on food delivery. It's too early days in the U K. If you look at the agreements we want this to be profitable.
Don't think of this as the same thing as the flash grocery delivery staff.
After after something that's sustainable that is okay.
Let's take Canada.
I think it's 1500 skus so actually.
You are able to use it as a supermarket.
It is not a limited amount of Skus of 60 quite extensive and therefore, you can use it on that on a daily basis or on a weekly weekly basis.
And it's important again to us that we get this to profitability just like the rest of the logistical network and again its easier in Canada than elsewhere.
The question I didn't understand it at all.
This was.
Yes, I'm sorry.
Sure.
Yes, maybe just to add on that.
On the convenience side I think we are also giving you some background on it.
<unk> auto frequency in the capital markets day.
Besides that obviously, we have improvements of our fleet utilization, which are helpful from the business.
And obviously.
It looked like Canada, where we are EBITDA positive.
There it also drives incremental profitability.
Thank you.
The next question is from Michael.
Ken Your line is open. Please go ahead Sir.
Good morning, gentlemen.
A couple of questions on delivery.
Last year, you did 470 million delivery orders.
I was wondering which percentage had a deliberate lucy.
With that.
Bye now.
Like 80% or so.
Is that 80% today or.
In 2021 as a whole by now.
The whole year must be something like 40%, 50% or so.
But not to speculate about percentages.
You should look at it.
Well together kind of feels right.
Something like that okay.
Some of your websites across the various markets and it looks as if you're having delivery fees now everywhere even in Germany.
And what's sort of your average fee across your entire.
Footprint because at 150.
None of the whole footprint it must be higher than that but if you look at.
In Europe , it's probably around one.
Five we don't delivery fees every way yet.
And in some places for competitive reasons, we choose to keep them low.
And for example, if you take the German example for.
For example.
Private brands for example that it's free delivery in Germany, which makes us quite some orders so not everything is for free and also like.
We will get way more differentiated.
With regards to delivery fee. So and we're also them depend on where you are how close yards in the restaurant and continents multiple factory spending alright, thanks that delivery fee.
So dynamic pricing is a good range and theres a lot of demand that I have to pay more for that same order compared to semi.
Yes, it's mainly about this.
Okay. The reason I ask is because this gives me a better inside in the dynamics.
The delivery fees can add further EBITDA improvements going forward.
Because if it is now at 80% currently run rate versus 40% last year than you already have a lot of improvement.
And then I assume that as well I also looked at your UK whats your fees are still well below that of one of the others.
You can bump that as well then that's quite some interesting dynamic for you you've been hearing.
<unk>.
One more after market share in the U K and after after EBITDA increases from from racing delivery fees.
It is helpful for us, but again it depends very much on where you are delivery fees across Germany is still a still very low but.
But we also don't want to waste money.
So.
If we can increase them.
We will.
Hey, Good then I also have a follow up question on the legal situation in U S.
You said there was some sort of a work around which you can ask for another additional fee no no.
And that's in some cities.
The city Council's in most cases, no it's not a legally tenable situation for them.
Or at least I want to avoid a court case because court cases are very costly in the U S.
And therefore, you can sometimes negotiate an outcome I think this was the case.
I think it was Philadelphia, where we were able to.
To make sure that we can.
Both support the restaurants community and help ourselves.
So there is some progress, but you are not there yet.
Well.
Okay.
An additional $150 million EBITDA, you would have noticed that.
Okay clear.
Is it from my side. Thank you.
The next question is from Mr. Glenn mentioned.
Your line is open. Please go ahead Sir.
Thanks, I'll have two questions first one is on grocery.
You seem to have.
<unk> had quite a large number of grocery store partners.
World.
You know where you want to.
Where you want to overall <unk>.
In terms of offsetting or not yet and where do you want what you intend to widen our VLCC and my second question question is on the fee caps.
V 22, EBITDA guidance takes into account if you remove all of full sheet caps Adrian <unk>. The U S at least beyond New York Alright. Thanks.
No. They are a realistic assumption of FICO and don't forget that most of the fee caps in U S are gone.
They're not there at this point in time.
So most of it.
Almost all of it is the New York fee cap.
That's still remaining.
Therefore.
That's the one to watch.
Regarding your first question around the grocery offering whether we are dead. When we wanted to be we are at 5%.
Okay.
Okay. Thanks.
Thanks.
The next question is from Mr.
Ma'am.
UBS. Your line is open. Please go ahead Sir.
Yes, hi, good morning, it's Jim.
Three quick questions hopefully so first one apologies if this was asked I Jonathan.
The first one in terms of U S and growth you've talked about partnership conversations that are ongoing.
Can you perhaps share any learnings if you were able to.
As it relates to the strategic value or Grub and what are you learning.
First one.
Secondly, in terms of the changing regulatory landscape or regulatory landscape as it probably already he's.
What are your observations.
How will your competitors are learning to work with them, let's say in Spain for example.
Last one.
U K I know you've already said you had improved profitability in 2022, but I just recall there was a chart that you showed that the capital markets day with the monthly EBITDA that showed quite a nice trajectory I just wondered if that improvement continued into Q4.
And if it did could you see UK breaking even possibly in 2022. Thank you.
Thank you that's the surface that last question.
If you follow that charge Youll, probably conclude that we are EBITDA breakeven in December and actually we are close to EBITDA breakeven in December .
However, however, we are not done with the competition yet in the U K and therefore, we are going to invest a lot of money next year also bear in mind that.
In December usually delivery restaurants close over the Christmas period, and the UK. So you have more market based restaurant then all of a sudden you are more profitable as a consequence, so we're doing very well.
And EBITDA in U K, but we also have quite a lot of investment that we want to do in the U K to.
To make sure that our share not only in the whole of the U K, but also enrollment becomes much bigger so that has our biggest priority, India and the U K if competition.
We use especially related a bit maybe we will be more profitable.
We want to caution on the on the U K EBITDA don't get overly excited that managed to get to.
Breakeven don't forget we are not profitable and the UK because of growth decisions, we want to outgrow the competition in absolute sense I don't know if theres any relative sense, but in absolute terms, that's the more important thing.
Then.
You asked about the <unk>.
Legal situation in.
Europe and winter.
Competitors are able to adapt.
Our competitors are always trying not to have depth, but to circumvent the law.
So if you look at Spain, specifically.
Delivery will have to spend that did not want to.
Adhere to the law they left.
I think Uber.
<unk> is doing subcontracting in Spain.
And the other competitor.
If I interpret what I know about Spain correctly.
Has now employed 20% of the staff and of course, the law says that you need to employ 100% of the staff.
That will of course create a lot of times.
But you would have to ask.
Our competitor there how they want to deal with.
That is not it's not legal.
Perfect.
Everybody did on the <unk> would know that because these articles are all over the Spanish media.
Sure.
Then regarding the strategic value of Grubhub.
Well, there's a lot of people that are picking up the phone whether thats going to lead to something useful we don't know, but we are quite.
Hopeful and the reason for that is very simple, it's the same as in Canada.
Logistics is profitable in the U S.
So if you have a logistical network you can deliver everything.
It doesn't matter, whether it's food or iPhone cables or groceries or.
So the last mile network is very valuable to a large number of players.
Now again I mean.
I think it's always important these discussions they take time, especially if you have discussions with a lot of people.
And this also be the right moment for those players and sometimes.
Also again takes time, it's something that we are actively.
Pursuing but there is there is quite some interest there.
So we're hopeful that we'll be able to get to a transaction.
Got it very quickly in terms of the potential partners can you give us what verticals.
There is a sort of consumer industry that youre seeing interest in or is it.
Very very widespread.
It is very widespread now.
The obvious candidates are grocery chains.
Taxi business other large large consumer large consumer brands there might be some.
Some super large consumer brands that might also be interested.
There's a broad range of people we are engaging there's a good presentation, which you can find online which includes a lot of Avenue maybe.
Maybe there's even a bit more.
Yeah.
Very helpful. Thank you.
Okay.
There are no further questions I would like to hand over the conference to Mr. Cooper.
Thank you very much and I would like to round up the short analyst and Investor call by thanking you for participating and your questions should you have any additional questions or remarks, please reach out to our Investor relations team. Thank you very much.
Ladies and gentlemen. This concludes the conference call you May now disconnect. Your lines. Thank you for joining me.
19.