Just Eat revenues soar 40% but competition with Deliveroo and Uber Eats to dent earnings

Earnings to be towards lower end due to investments in deliveries and expansion in Latin America

Just Eat is investing to take on rivals Uber Eats and Deliveroo

Just Eat expects revenues to soar 40 per cent this year but said that a battle for takeaway customers with rivals Uber Eats and Deliveroo as well as a push into Latin America would cut into earnings.

The company took the two delivery apps head-on last year by employing its own fleet of riders. Previously Just Eat connected customers with restaurants that had their own couriers.

Just Eat expects full-year revenues to come in at the top end of its £740m to £770m forecast after jumping 41 per cent in the third quarter to £195m.

But profits are expected to be dented by investment for Latin American expansion as well as increased competition. The London-based firm, which was founded in Copenhagen, now operates in 12 countries, including Mexico and Brazil.

Earnings will be towards the lower end of its £165m to £185m range due to “investments in our dynamic LatAm markets in addition to our delivery initiatives”, the company said.

The results sent shares up 3.8 per cent on Thursday morning. The company’s valuation had suffered recently amid speculation that Uber is in talks to buy Deliveroo to create a beefed-up competitor in the rapidly expanding British takeaway market.

While restaurant chains including Jamie’s Italian, Prezzo and Byron have closed scores of outlets this year, takeaways have cashed in.

Growing demand for convenience food delivered to the door has seen the takeaway delivery market grow from £2.4bn to £4.2bn in a decade.

Market leader Just Eat continues to ride that wave, with orders in the three months to 30 September rising 27 per cent to £54.7m. UK orders were up 16 per cent to £30.3m, which included its first ever weekend with more than one million orders.

Just Eat chief executive Peter Plumb said: “The group has delivered another strong quarter as we helped our 97,000+ restaurant partners serve over 54 million takeaways to millions of hungry customers.

“Our delivery expansion plans are on track, ensuring we give customers exactly what they want, and I'm very pleased with the progress we are making against our strategic objectives.”