The good news, for both, is that the delivery market is proving much more resilient than predicted as coronavirus lockdowns ease says the broker and possibly the current situation might turn out to be the new normal.
The bad news, for Deliveroo anyway, is that Just Eat is gaining share in UK delivery:
Deliveroo’s strong numbers in the UK (orders up by 94% in the second quarter) were achieved despite the fact that it seems to be losing out in the own-delivery segment.
The group made 18.2mln more deliveries in the second quarter of 2021 than in the same period in 2020, but Just Eat Takeaway (JET) achieved UK own-delivery order growth of 26.3mln.
That makes it the second quarter running that JET has delivered more incremental orders than Deliveroo in the UK, said Berenberg, with the gap widening.
JET is making market share a priority, notes the broker, with delivery costs low. While that might suggest competition will ease as JET raises prices, it is also preparing to launch grocery in a new battlefront.
That might force Deliveroo to invest more, which means profit/loss guidance may have further to fall.
Hold Deliveroo with a price target of 310p, concludes the broker.
Shares eased 1.3% to 295.3p.