Just Eat Takeaway.com NV (LSE:JET, NASDAQ:GRUB) (JET) has demonstrated notable market share gains in the United Kingdom and Ireland (UK&I), highlighting a strong performance in what remains a challenging economic environment, said Shore Capital, analysing the food delivery group's quarterly trading update earlier.
According to the broker, the online food order and delivery service surpassed expectations with an 11% growth in gross transaction value (GTV) in the UK&I, notably ahead of the industry growth rate pegged at a mid-single-digit percentage.
Its pricing strategy further bolsters the competitive edge for JET in the region. Shore's analysis points out that basket orders on Just Eat are approximately £1 cheaper than those on rival platforms.
This cost advantage is significant in retaining customers who, amid cost-of-living concerns, are less likely to revert to more expensive options.
This strategic pricing not only helps Just Eat maintain its customer base but also positions it well to capture new users as economic pressures push consumers to seek more value-for-money services, Shore added.
The investment outlook for JET remains positive with the broker maintaining a 'buy' rating on the stock and setting a 'fair value' for the stock of 2,100p.
Market sentiment wasn't as upbeat as Shore's analysis with the stock down 4.7% at 1,138p amid cost of living concerns, which continue to dog the food delivery sector.