Euro Customers Lose Appetite For Takeaway Apps

Key Takeaways:

• Food takeaway companies in Europe are struggling to grow their base of digital app consumers at the same fevered pace as during the pandemic, threatening order volume and overall sales; apps are pressured by the current challenging macro environment with a cost of living crisis plaguing the EU

  • The three largest food delivery services in Europe by MAUs (including Uber Eats, Just Eat Takeaway, and Deliveroo) have seen MAU growth fall a collective 13% YoY in 4Q22 vs +12% and +62% YoY growth in 4Q21 and 4Q20, respectively, per ST estimates

  • Europe installs of Just Eat Takeaway, Uber Eats, Deliveroo, and Foodpanda fell 30% YoY, collectively, in 2022 (-33% vs FY2020 estimates), while Glovo was up 3% (+15% vs FY2020 estimates); Glovo’s growth was driven by expansion in Bulgaria and Romania since acquiring Foodpanda’s operations in 2021

• The absence of switching costs and promotion-driven usage habits have likely contributed to increased churn on food takeaway apps: Per Sensor Tower Churn Analysis data, Uber Eats and Deliveroo saw the most significant uptick in average user churn in 2022, up 3pps and 2pps, respectively, compared to 2021, while Just Eat Takeaway and Foodpanda were each up 1pp

• Grocery stores have been able to capitalize on inflation-pressed consumers, who are switching to the often-cheaper option of dine-in

  • Installs of grocery apps in Europe were up 24% YoY in 2022, as consumers returned to in-store shopping amidst a cost of living crisis eroding their spending power, according to ST estimates

    • Lidl Plus and Tesco saw outsized growth post-pandemic with 2022 Europe installs of the grocers’ mobile apps up 47% and 84%, respectively, vs 2020 estimates

  • Grocery apps offer users in-app coupons, and oftentimes run campaigns and promotions around their respective rewards programs that can unlock special deals leading to significant discounts on groceries 1 Includes Austria, Belarus, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, United Kingdom, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, and Ukraine 2 Grocery apps Include: Lidl Plus, Tesco Grocery, ASDA, Sainsbury’s, and Aldi.

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