Investing.com — According to a recent note from Morgan Stanley, Just Eat Takeaway (JET) and Deliveroo (OTC:DROOF) are well-positioned in Europe’s competitive food delivery landscape, holding strong market shares across multiple countries.
The investment bank provided an in-depth look at market share dynamics for major food delivery players in Europe, including JET, Deliveroo, Delivery Hero, Uber (NYSE:UBER) Eats, and DoorDash (NASDAQ:DASH) (Wolt), particularly in Western Europe.
Morgan Stanley highlights that JET enjoys a leading market position in key European markets, commanding an average market share of around 43% across 11 countries.
“JET has a high share (c.43%) on average across the 11 countries assessed, with strong leadership positions in larger TAM geographies, such as Germany (84%), the Netherlands (66%) and the UK (41%), and a number two position in 2 more of the markets assessed on our data,” wrote Morgan Stanley.
The report notes that market share trends for JET have stabilized in core markets after facing pressure in recent years.
Deliveroo also holds a solid position, ranking as the second-largest player in four out of five key markets with an average market share of 29%, according to Morgan Stanley.
Furthermore, Deliveroo is said to maintain the third spot in its remaining market, with its market share remaining stable in its core UK region and other territories.
The Morgan Stanley note suggests that Europe’s food delivery market is still ripe for consolidation, as most countries feature either two or three major players.
“We continue to see potential for the landscape to consolidate further, particularly as our European coverage focuses on improving profitability and cash generation,” states the bank. “This could potentially result in companies exiting less profitable markets, where they may have lower share.”
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