Cat Rock Capital: Same-day delivery is the future

Greenwich / CT. (crc) Cat Rock Capital Management LP, a long-term oriented investment firm and holder of approximately 14.0 million shares in the capital of Just Eat Takeaway.com NV, representing circa 6.5 percent of Just Eat Takeaway.com’s outstanding shares, published a presentation on the strategic value of Grubhub and its implications for Just Eat Takeaway.com. The presentation is available for download at JustEatMustDeliver.com.

Alex Captain, Founder and Managing Partner, Cat Rock Capital Management LP, commented:

«As one of Just Eat Takeaway.com’s largest and longest-standing shareholders, we shared our view last month that JET should refocus its business on Europe and unlock the significant value of Grubhub through consolidation with a US-focused company.

«Since sharing our views last month, we have had a productive dialogue with JET management. We agree with the Company’s intention to participate in US consolidation and favor timely action that refocuses JET on its enormous European same-day delivery opportunity.

«Today, we are sharing our research on the significant strategic opportunities for Grubhub publicly for the benefit of JET’s shareholders and Board. Cat Rock has spent over six years researching the online food delivery sector and has been a shareholder of JET and its predecessor companies for over four years. Our views on JET’s strategy reflect our enthusiasm for the Company’s long-term prospects and value assuming focused execution and pragmatic strategic action.

«Same-day delivery is the future of e-commerce globally. In the US alone, same-day delivery has a USD 2.6 trillion addressable market and has been growing at 79 percent per year since 2017.

«Grubhub is one of only four scaled independent same-day delivery networks in the United States, which gives it significant strategic and intrinsic value. Today, Grubhub has over 32 million customers generating ~USD 10 billion of sales, a partner base of over 300,000 restaurants, and a logistics network consisting of ~200,000 couriers delivering ~USD 7 billion of food across over 4,000 cities.

«Same-day delivery allows physical retailers to offer faster delivery times than traditional e-commerce players, making them far more competitive as consumers increasingly shop online.

«Grubhub’s same-day logistics network across over 4,000 US cities has incredible value to a broad range of e-commerce and physical retailers, including Amazon.com, Walmart, Target/Shipt, Instacart, and Kroger, among others. Moreover, Grubhub’s restaurants and customers also have significant value to a broad range of US-focused technology companies like Uber, Lyft, Booking.com, Square, and Toast.

«The pace of change in online food delivery is staggering, particularly as the COVID-19 pandemic altered consumer behaviour and unlocked enormous new market opportunities. JET should adapt its strategy to the changes that have occurred in the 17 months since announcing the Grubhub deal, which have increased the strategic value of same-day logistics platforms and expanded the addressable market for online food delivery.

«We believe Just Eat Takeaway.com should act expeditiously to refocus its business on Europe, where it is the clear market leader in online food delivery and best-positioned to capture the incredibly large same-day delivery opportunity.

«We welcome continued dialogue with Just Eat Takeaway.com’s Board and shareholders regarding our research and perspectives. With focused execution, JET will be the future of same-day delivery in Europe, and we could not be more excited about the Company’s prospects.»

The Cat Rock presentation and past releases are available at JustEatMustDeliver.com.