Just Eat Share Discussion Threads

[hpcg] 25/8/2015 10:11

Possibly setting up a downward channel similar to the upward channel but a bit wider? In the absence of news it might well go on to form another lower high.

[tpaulbeaumont] 25/8/2015 09:54

for the moment model shows significant support lies at 325, 282.5 and around the 232.5 gap

[hpcg] 24/8/2015 20:49

Great find Asagi. I closed my short today because nut job shares are not being swayed by market moves as much as conventional money making ones. Partly tactical as well of course. Basically what you said in your penultimate post. One only has to look at AO, assorted fraud stocks in the US, and some of the action at the squalid end of AIM to see that some companies attract the less analytical investor.

[asagi] 24/8/2015 18:27

Don’t Cook, Just Eat out of rat-infested kitchen: Fast-food site features takeaways rated ZERO on hygiene

mirror.co.uk/news/uk-news/dont-cook-just-eat-out-6302203

And when our ­investigator started to register an outlet, no mention was made of hygiene and they were told they could operate from home... Our investigator enquired online about listing a food outlet on the site. The only information they had to give before paying the £699 fee was a name, address, business name and phone number.

They did not make the payment but were called within an hour by the Just Eat sales centre. The operator tried to entice them with a one-off sign-up deal of £150, with six months to pay the rest.

Of most interest is the discount offered within one hour. Sounds like a business that is struggling to add new customers at list price. Thoughts?

Asagi (short JE.)

[asagi] 24/8/2015 14:28

today's sell-off feels like value-oriented profit taking. Take profits and recycle into something else at a later date i.e. not likely a permanent loss of value. Pity, that.

Asagi (short JE.)

[hpcg] 23/8/2015 11:19

Rent seekers as is the case with JE will get what they deserve. As a deliverer of physical goods within a tight geographically defined area, printing details of the app onto menus and giving to existing and new customers is trivial and has no marginal cost.

[asagi] 23/8/2015 10:44

Here is another one. App4food.

Mobile app for £600 + £59pm.

app4food.co.uk/#packages

"Having to wait 2 to 4 weeks for payment of our online orders isn't ideal. With App4Food all card payments are paid direct to my bank, every couple of days, and is a great benefit to us"

Rahman - Takeaway Owner

[hpcg] 20/8/2015 17:01

Getting close to a head and shoulders completion which would put 350 in play as the target. Interpretation depends a bit on whether one considers 400 the neck line or more classically 375, or indeed a diagonal from 375 to 400. It is a bit messy and perhaps just being wildly over-valued in a jittery market is more important?

[lennonsalive] 14/8/2015 15:23

The chart shows an upward rise from August 2014 to now, however this will be interesting to see if it tests 500p again and if it hits the celling

[hpcg] 13/8/2015 14:03

The risk in shorting a company like JE which has baked into its share price profits it will never earn is that extrapolating growth investors can drive the share price to even more unrealistic levels. JE will make less in profits in its entire life (which is probably only a few years anyway) than its market cap now.

[cabreado] 13/8/2015 13:42

Asagi, a native app development and maintenance reflects the different in cost. You seem passionate about it, so as an exercise instead of looking for cheap online template apps, contact an agency and see the scalability and the level of maintenance v cost.Of course if you feel strong keep shorting, but I am not sure if you are focusing correctly here where you can short other riskier stocks.For the time being (mid term) this is a winner.

[hpcg] 13/8/2015 12:40

Chart wise this could well be in the process of forming a head and shoulders. It might not do so of course, but it would set up a nice pattern to risk a leveraged position on.

[asagi] 13/8/2015 12:07

but apparently Just Eat costs £1,400 a month. And check out that growth rate. It is falling.

See this rival's blog:


apparently, the bespoke app produced 248 orders in 30 days. For a price of £99 a month, saving the restaurant £721 of Just Eat fees.

The loss to Just Eat would be even greater in truth as it would lose the card fees also.

Asagi (short JE.)

[cabreado] 13/8/2015 11:24

Ha ha. Now you have the site and the app, time to start sending a few thousand emails, hundreds of phone calls, and knocking some doors. Easy!I am sitting strong on JE. Solid steady growth, strong share price, good technology, big database, and most importantly clear and positive financials.

[asagi] 13/8/2015 10:53

Here we go - a Do It Yourself non-aggregator rival.

hxxp://www.blueplustechnologies.com/

Website, online ordering and app for £70 a month. £895 set up fee. Unfortunately I cannot find an example where someone has indeed taken all three services from them.

hxxp://www.blueplustechnologies.com/pricing

Asagi (short JE.)

[undervaluedassets] 12/8/2015 11:30

I think the takeaway companies will rebel in the end.

It is just a leech on business and an expensive one at that (12 %?)

Early adopters may have benefited but when all the takeaway companies have "just eat" or a competitor there will be no net benefit.

If it created an increase in the customer base overall then fine . However this is not true so no net benefit to the companies just a cost.

[hpcg] 11/8/2015 20:36

One could replicate what JE provides using WordPress in a few days at most. Connect to Sagepay or similar for the transaction. Or even not bother with the payment part. There are no doubt better tools to use, that just happens to be route I know would work using open source.

[hpcg] 11/8/2015 20:22

I downloaded the all yesterday and had a look at the local options. It's a right mixed bag. The app itself looks very web 1.0. For 1 or 2 people it would be slower than the phone. Actually same for families where people are ordering without needing a menu.
The one positive was a couple of places which were delivery only, one being a pub with Thai food. I can see it makes sense for them. I can see why repeats are so weak.

[asagi] 11/8/2015 15:04

this is like music to my eyes.

Asagi (short JE.)

[asagi] 11/8/2015 13:30

this page is instructive:

hxxp://www.just-eat.com/revenue-model/

says that 13% of group revenues is card fees.

the quote above is from here:
hxxp://www.just-eat.com/our-business-model/

and makes no distinction between credit and debit cards.

Asagi (short JE.)

[dangersimpson2] 11/8/2015 12:16

Do they charge for debit card transactions or just credit card charges?

If it is all card charges then that really wipes out one of the only benefits of Just Eat which is not getting cash out.

[asagi] 11/8/2015 11:29

JustEat have real problems getting people to use their app habitually. This could be because it saves little time versus phone/visit or the credit card charges.

We are also now increasing our focus on improving consumer retention and frequency, particularly in ensuring that more new users reach the all-important third order.


the ability to order online is of value I believe but the marketplace/choice less so.

"A small fee is charged typically on orders paid for by card."

that's a bit vague. I understand that it is 50p. From the last interims, the average revenue per order is £2.36. A big chunk of Just Eat's revenues comes from card charges. I'm not sure the charge can be justified given the large volumes and higher transacation values that Just Eat enjoys versus, say, a pub.

Asagi (short JE.)

[lennonsalive] 10/8/2015 19:49

I might download this app and check it out.

Does it save your orders for repeats in the future?

[cabreado] 10/8/2015 12:45

Thank you for kindly challenging my point. I can see your angle, but as an avid app user (of this and other apps) I can see other people using it again and again perhaps 99% of the time to reorder: One platform - multiple choices.

[hpcg] 10/8/2015 10:24

cabreado - sorry I can't agree with the analogy with insurance comparison sites, or for that matter hotel or flight aggregators. For insurance there are hundreds of providers and all of them are equally accessible. It requires some data analysis to find out what best suits a customer. There is no such thing as a regular insurance customer.

When it comes to travel aggregators no one who travels regularly uses them; everyone goes direct to the supplier. I used one of the hotel sites once. It was a con. What looked like a cheaper price than direct turned out to be more expensive and more hassle than direct as local taxes were not included. It was probably in the small print somewhere. Even for independent single establishments they always have a website and booking direct is cheaper.

The space exists as travel is split, I would guess, 50-50 between frequent and once a year. The frequent traveller has multiple airline and hotel memberships and knows what they are doing. Their considerations of where and when to book will be nuanced. Once a year travellers are often swayed by price, and in any case may be bewildered by a choice which is difficult for them to exercise judgement on.

For take away food 99.99% of transactions are local repeat customers. For the most regular customers the transaction is as simple as name, and same as usual. The role of an intermediary adds more or less nothing to the transaction for either party.