Deliveroo PLC (LSE:ROO) lost on potential orders in the UK and Ireland for the third consecutive quarter, with rival Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) believed to have grown its share of the market.
Analysts at Shore Capital believe the takeaway company lost order share in its fourth quarter in both the UK&I, the group’s key region, and throughout the rest of its global operations.
The London-listed business reported quarter-on-quarter order growth of 5% globally in its last quarter of the financial year.
However, Just Eat, which reported its results on Thursday, saw order growth of 7%, which experts at the UK broker say “indicates further order share loss” for Deliveroo.
Shore Capital added: “We believe what appears to be further sequential order share losses (three consecutive quarters on our count) to Just Eat in ROO’s key UK&I region.”
Analysts have also drawn attention to the group’s take rate, the amount it charges per delivery, as they believe this will start to lower in the upcoming financial year.
Throughout the 2023 financial year, Deliveroo has kept its take rate “meaningfully higher than peers” and exited the year at a rate of 28%.
Consensus for the upcoming year has placed the take rate at 29%, but the UK broker believes analysts’ expectations may place it lower.
“A step back in take-rate remains consistent with our rationale that price consciousness remains top of mind for consumers and that risk remains on ROO’s ability to offset further costs in FY24F through fee taking,” Shore Capital concluded.
Analysts at the firm rate Deliveroo a 'sell', with shares in the company down over 3% on Friday at 130p.