Welcome to the Just Eat Takeaway.com Q4 2020 trading update call. My name is Rinkel, and I will be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Jitse Groen, to begin today's conference. Thank you. Thank you, operator. That sounded a little bit Asian, but thanks for handing over. Good morning, everybody, and welcome to this analyst and investor conference call to discuss the fourth quarter 2020 trading update for Just Eat Takeaway.com. On our corporate website, you can download our press release, the slides for this analyst and investor conference call, and other related information. I will start today's presentation by taking you through the business and financial highlights for the quarter. Jörg Gerbig, our COO, will update you on the progress relating to our key strategic initiatives. He will also share additional background on our market positions in the largest European markets. Brent Wissink, our Chief Financial Officer, will talk you through the performance for each of our five operating segments individually. I will end the presentation with some concluding remarks, after which we will open up the call for your questions. Now please follow me to slide four. As you know, Just Eat Takeaway.com is active in 23 markets worldwide. Well over 90% of our gross merchandise value is generated in markets where we are the number one player. For those new to the sector, the U.K., Germany, and the Netherlands are the three largest markets in Europe in terms of revenue. In these three markets, Just Eat Takeaway.com is comfortably market leader, and Jörg and Brent will share further information on the performance. On slide five, I will take you through the business highlights. In August, we announced an investment program which is highly successful and is leading to significant market share gains in most of our businesses. The integration with Just Eat is on track and progressing well. We have created a combined operating model, and we have aligned our organizational structure. We also launched our delivery service, Scoober, in London and Paris to enhance our network effects, and we will continue to further roll out Scoober across our countries. Scoober allows us to further add premium restaurants to our offering with very short delivery times, an excellent service, and much lower delivery fees than our competitors. The coronavirus resulted in unprecedented times for the company, our employees, our couriers, and our restaurant partners. We supported our restaurants with various relief measures, and we launched campaigns to support healthcare workers with free or discounted food across our markets. This resulted in approximately EUR 45 million in social support worldwide in 2020. Lastly, our shareholders approved the Grubhub transaction at the AGM in October. On slide six, you will find the financial highlights. In the fourth quarter of 2020, Just Eat Takeaway processed 180 million orders. In addition to the strong and accelerated growth in marketplace orders, our delivery orders grew 163% year-over-year. These orders represent a gross merchandise value of EUR 4 billion, generating a revenue in a range of EUR 720 million-EUR 740 million, up more than 60% compared with the fourth quarter of 2019. For the full year 2020, we expect revenue of approximately EUR 2.4 billion, a growth of more than 50% in combination with an adjusted EBITDA margin of approximately 10%, reflecting significant investments in delivery in the fourth quarter of 2020. On slide seven, you see the quarterly orders, GMV, and revenue in a different format to display the strong performance in the last quarter of 2020. I would like to highlight especially the GMV in the middle of the page, which grew 68% to EUR 4 billion in the quarter compared with the same period last year. This metric is especially useful to compare us to our competitors, as it is the only metric that isn't positively or negatively affected by the quality of the underlying orders. Moving on to slide eight. The fourth quarter of 2020 marks our third consecutive quarter of order growth acceleration. At the end of the first quarter, at the start of the pandemic, we saw a negative impact on our orders. However, during the first lockdown at the start of the second quarter, our business recovered, followed by an accelerated order and AOV growth. We initiated our investment program, which led to further growth in the first quarter, despite lockdown relaxation. At the same time, we did see average order value trending down to more normal levels, which you can observe in our GMV for the first quarter. We invested significantly on the back of the strong momentum, which, combined with the second lockdown across our markets, led to a further order growth acceleration in the fourth quarter. On slide nine, you can see how our investment in delivery led to a significant ramp-up in delivery orders. In the fourth quarter of 2020, we processed 55 million delivery orders, and the delivery share reached 30% of total orders. This growth, in particular, is a reflection of our strategy. Now turning to slide 10, which most of you likely recognize, and which forms the basics of our business model, the cohorts. This, I believe, is actually the most important slide of this presentation. On the left-hand side, you see the quality of our business. Even including the churn, people order more frequently over time. That hasn't changed during the pandemic. On the right-hand side, you can see that the vast majority of our orders come from existing users that behave and have behaved extremely loyal. The big difference between 2020 and other years is that our existing users have ordered far more frequently. This is caused by a larger portion of our user base turning into higher frequency customers. We therefore also believe that this effect will be lasting also after the pandemic. 2020 was also a record year for new user addition. If you compare the pink part of the chart in 2020 with the red part in 2019, you can see that the difference is significant. I would like now to hand over to Jörg. Thank you, Jitse. Good morning, everyone. As Jitse mentioned, we are increasing our investment in the business to create further network effects and accelerate our growth. In this section, I will talk more about these strategic investments and demonstrate the progress we have made already and the positive impact these have had on our performance. Please move to slide 12. In Q4, we have invested significantly to reinforce and extend our market leadership across our markets, particularly into legacy Just Eat markets, which have been historically under-invested. There are three broad areas where we focused our investments to strengthen our network effect. The first is in expanding our supply, adding more restaurant choice in all of our markets with a focus on major cities. As you know, restaurant supply is a key driver of the positive network effects associated with our industry. In particular, we've continued to add chain restaurants to the platform, notably in the U.K., where we've now scaled up to over 800 McDonald's and 600 Wetherspoons. We will continue to drive restaurant acquisition in 2021, and we have restructured and scaled up our sales teams to enable this. This quarter has also seen us launch Scoober, which is our delivery service using employed couriers in a number of major cities, including London and Paris. As we have talked about before, we are strong believers in offering couriers fair and transparent working conditions, as well as adhering to local labor laws, and we believe the launch of our own employed model in key markets is an important milestone in the long-term sustainability of our industry. The Scoober model also allows us more control over the quality of the delivery and provides better visibility of our brand on the streets. We are working hard to launch Scoober throughout continental Europe this year. The second area of investment is in our brand. We believe food ordering is often an impulsive decision, being top of mind at all times across all markets is critical to support continued growth. In the quarter, we have not only completed the alignment in the look and feel of our brand globally, but also invested significantly in top of mind brand awareness and performance marketing in Just Eat legacy markets. We've also launched a major new loyalty program in Canada, which provides our consumers with even more reasons to enjoy SkipTheDishes. We are also investing in our customer experience and value proposition. We want to be the price leader in our industry. That means offering even lower delivery fees across our markets, such as U.K., Canada, and Australia, including, for example, free delivery in High Street with selective chains in the U.K. We've also been enhancing our product and our underlying technology. During 2020, we've migrated the French and Swiss IT platforms to our core European platform, and in Q4, we've improved our user experiences significantly with a new checkout and an enriched restaurant list with photography. On top of these initiatives, we also believe it's really important to support our restaurant partners and our wider society throughout these challenging times. As several countries re-entered lockdown in the fourth quarter, we reintroduced our support package offering partners rebates on commissions. We've also given back to our community, including couriers, healthcare workers, and charitable initiatives, resulting in circa EUR 45 million in support worldwide in 2020. As we enter 2021, we will continue with our investment program as started in 2020. As always, we will prioritize market share gains over adjusted EBITDA, and we believe these strategic investments will fuel the next wave of growth for Just Eat Takeaway.com. Please follow me to the next slide. As Jitse mentioned earlier, we are the clear market leader in all of our key markets, with over 90% of our GMV coming from markets in which we are number one player, and we have strengthened those leadership positions in 2020. The chart here shows Google Trends search interest in web and mobile of our three major European markets, which we believe is a good proxy for new customer acquisition. As you can see, we continue to perform very strongly in the U.K., Germany, and Netherlands, despite significant investments by our competitors. Moving on to the next slide. This slide focuses on our market share specifically in the U.K. with data from Google Trends on the left-hand side and credit card transaction data on the right-hand side of the page. This shows that we are clear market leader in the U.K. and also that our share has been very stable in the second half of 2020. When you look at the next slide and the number of transactions that we are doing, you can see that we've actually extended our lead in absolute terms. Our estimates suggest that between September and December 2020, that lead has widened up by around 3 million orders. In December, we processed over 20 million orders, of which 6 million were from delivery. We believe that is almost as many food delivery orders as the number three player processed in total. With a year-over-year growth rate of 387% in delivery in Q4, we are also the fastest growing logistics business by far in the U.K. I'm now going to hand over to Brent, who will talk you through the segment performance in more detail. Thank you, Jörg, and good morning, everyone. In this section, I'll walk you through some key highlights from each of our segments. Please note that I will only talk about order development and GMV. We are not disclosing financial information at a segment level at this time. On slide 17, you see our performance in the United Kingdom. In the U.K., we have seen very strong performance in the fourth quarter of 2020, with order growth of 58%. GMV grew by 62% on a constant currency base, ahead of order growth. We processed over 20 million orders in the month of December, a new milestone. Delivery was a key driver of that growth, with 14 million orders in Q4, almost five times higher than the same quarter in 2019, partly due to the rollout of McDonald's and Greggs, as Jörg was mentioning before. We had a record month of restaurant sign-ups in November, including a new record of acquisition of marketplace restaurants, plus new brand additions such as Starbucks. Please turn to slide 18. In Germany, we continue to achieve very strong growth, with an order increase of 56% in Q4, and a revenue growth of over 70%. This was underpinned by an increase in marketplace orders from 21 million in Q4 2019 to 33 million in Q4 2020. Germany remains primarily a marketplace market, with delivery making up 7% of all orders in this quarter, but growing strongly at over 90%. We added a record number of net new restaurants during the quarter, and continued expansion with major change, including McDonald's, Burger King, Subway, and KFC. Moving to slide 19, where we show our Canadian business. There, we have had an outstanding year and finished with a strong fourth quarter. Orders have almost doubled compared to the same period last year, whilst GMV increased to over half a billion EUR, which is 103% growth on a constant currency basis. Restaurant sign-ups accelerated quarter on quarter. Our industry-leading COVID support package has helped us give back over CAD 32 million to our partners since March. We've also launched a new reward program in Canada and have seen exceptional engagement from customers, positively impacting both order frequency and retention. Let's proceed to slide 20, where we show our Dutch business. In the Netherlands, we achieved over approximately 40% order growth to 14 million orders, of which 9% were delivery orders. Despite having a high penetration of users, we continue to accelerate new customer acquisition quarter on quarter. Marketplace orders increased to 13 million orders, whilst delivery more than doubled to 1.3 million orders. GMV growth has even been stronger, growing by 56% to approximately EUR 340 million. Finally, please turn to slide 21. The rest of the world segment performed very well. Overall, Q4 orders in the segment grew by 47% to 50 million, and GMV grew 62% against the prior year on a constant currency base. Australia was the star performer, achieving a triple-digit growth in orders and GMV, with growth further accelerating in the fourth quarter, which we believe has resulted in a meaningful market share gain. We also achieved high double-digit growth in a number of other larger markets, including Italy, Ireland, Belgium, Poland, and Austria. We remain the clear market leader in a majority of markets within the rest of world segment. That brings me to the end of this section on segment performance, and I will now hand over back to Jitse. I will continue with the conclusion of this presentation on slide 23. Our growth in the fourth quarter of 2020 further accelerated. Our U.K. business performed strongly, and we have increased our delivery orders nearly fivefold year-on-year. We will continue to invest heavily in our business and prioritize market share over adjusted EBITDA. The integration of Just Eat is well underway and on track, including the rollout of Scoober and platform consolidation in continental Europe. Last, we anticipate completing the Grubhub transaction in the first half of this year. To conclude, our mission has always been, and still is, to provide the best possible service to restaurants and our consumers everywhere we operate. This is now more important than ever. With that, operator, I would like to open the call for your questions. As a reminder, if you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. You will be advised when to ask your question. Star one on your telephone keypad now. We have a first question from the line of Monique Pollard from Citi. Monique, you are unmuted. Please go ahead. Hi. Morning, everyone. Just three questions from me, if I can. First thing, I just wanted to understand whether we should expect that own delivery pace of order growth to continue into 2021, particularly in the U.K. Obviously, the Scoober rollout happened at the end of the year, and the great McDonald's partnership accelerating. I don't know if that's sort of a one-off in terms of the pace of that growth. The second question I had was just whether we should expect any material change in the own delivery cost per order in the second half of 2020 versus the first half, given you've had that rollout of Scoober. I was just wondering if you had had any change in your thoughts or view on the potential for additional verticals on the own delivery platform across Europe, particularly things like grocery, given the pandemic. Thank you, Monique. First, on your question about the pace of the delivery rollout. There's a couple of things that are combining currently for our business. If you look at specifically the U.K., we have added, what was the latest figure? I'm looking at you now for the McDonald's count. 875. 875 McDonald's stores in just a couple of months in the U.K. That, of course, has a significant impact on the growth because we started zero McDonald's orders, and we ramp it up quite significantly. We think that that will likely continue, at least for a couple of months. The reason for that is that we have just by far the cheapest delivery rates in the U.K. That's not only for McDonald's, that's for actually quite a lot of these logistical restaurants. We'll see a continuation of that. Similarly, for other QSRs, we'll see, at least until the end of the pandemic or at least until spring, a very rapid growth of the logistics. We do expect that growth for logistics to continue also after the pandemic. We do expect that demand for logistics will trend down after the pandemic, simply because a lot of the logistical business is replacement, is replacement of going to a restaurant. In the marketplace segment, though, of course, it's not a replacement business, it's a replacement of the phone. Therefore, we don't expect the same sort of impact on the marketplace. If you look at the delivery rollouts, we expect significant growth also in 2021 on that business. You see also, if you look at our figures, of course, that even in a country in which we have by far the largest logistical network, say Holland or Germany, even there, we're looking at 100% growth, give or take, on that network. It is something that's still growing significantly. If you look at those two countries in particular, it's growing less fast than in the past because we have basically all the restaurants that we can add to the service. We're not going to be able to add McDonald's another time because we already have McDonald's. Also there, high growth, and we expect also there, the high growth to continue at least until the end of the pandemic. Regarding your question around the own delivery, you need to understand that Scoober is not per se more expensive than the other model, because it has quite a lot of benefits to our company. The Scoober delivery model is superior to using independents because you control the couriers. We control quality, we control delivery times, we control the visibility of these people on the street. We have started in London. I guess that the people living in London would have seen that already. It is still a small business, but we do expect the logistical business in London to become our largest logistical operation. Currently, that would be Berlin, but it will probably become our largest logistical operation. Because we're adding quite a lot of nice brands to our service in London, and delivery will be free in London for those nice brands. I think that's actually also an important remark for me to make. The cost of the service itself is comparable between Scoober and third party or using externals. That has, of course, on a per person basis, it's more expensive, so it has a lot to do with how we set up that business and how we control quality and delivery times itself. Regarding your question on the verticals, the own delivery platform that we have, as you see, it has grown 163%. It is growing very fast at this point in time. We are focusing fully on the rollout of restaurants on that network and not on adjacent verticals. I've said that before. You should look a little bit through these adjacent verticals, because if you look at the profitability on orders, it's very clear. Marketplace orders are the most profitable orders. We have been very clear about logistics. We think that we can run that at gross margin at some point in the future, but that's it. It's not going to be highly profitable. If you then look at, for instance, I think that's what you're alluding to for us doing, building up a grocery hub and delivering groceries. You need to understand that that would equal revenue with GMV, therefore it would grow 10 times faster than a marketplace order. Yeah, there's no profitability there. We are focusing on the things that we think will improve our network effects. For the time being, that's the logistical business and that's the marketplace business. On top of that, of course, Takeaway Pay. Understood. Very clear. Thank you. Thank you. Thank you, Monique. We have our next question from the line of Joe Barnett from Credit Suisse. Joe, please go ahead. Excellent. Thank you very much for taking my questions. Three from me as well. Firstly, on the investment cadence into next year, I think the guide for FY 2020 implies something like EUR 90 million incremental investment versus what consensus was expecting in the back end of 2020. Whilst you will continue to invest in FY 2021, is it fair to assume that investment will normalize as the business scales? I guess the question is basically, is investment front-end loaded? The second question, you've been more reticent around logistics economics in your geographies than many others have been in theirs. As logistics ramps in the U.K. and becomes a meaningful portion of the business, what's your view on that? I think, Jitse, you alluded to in the previous question, you said it could be positive, but when do you think that could be? Any more detail you can give around how that's achieved. Thirdly, looking at your guide for investment in 2020, is the investment focused solely on the U.K. and/or legacy Just Eat businesses? Is it fair to assume that German and Netherlands profits have continued to rise? Thank you. Thank you. Let me first take the first question to Brent on your question about the consensus and our investments being front-end loaded or not. The view on logistics I will handle, as well as the investments into predominantly Just Eat. Sorry, help me out on the view on logistics. Did your view on the economics change? Okay, yeah the U.K. as an overall business? Okay, about getting to gross margin, I think that was the question. Yeah, correct. If you analyze our business, for instance, in Holland and Germany, we can easily get to a neutral gross margin if we raise our delivery fee. Our delivery fee, as you know, is somewhere between 0 and €1.50 for logistical orders in most of our countries. That means if you raise it to something that's below what our logistical competitors are asking today, it will be gross margin neutral. That's however not how we're looking at logistics. We are looking at logistics as a way to expand our market share at the expense of the competition. This is why actually we're investing in free or cheap delivery in most of our territory. You can easily see that that can also be done in the U.K. Now, there's a couple of things different in the U.K. as compared to the continent. First of all, our logistical network is not at the level that we expect it will be. You've seen that the growth in the U.K. is 387% in terms of logistics. It is very big. We've also shown that to you in the presentation that we did 6 million orders in logistics in the U.K. in December. You can imagine that with that growth rate, we are far from being at a, let's say, more docile growth rate of 100% that we have in the other countries. It's not as mature yet. We also haven't rolled out Scoober across the U.K. yet. We are very proud of Scoober, and we think it will make a significant difference to us in the U.K. It should make our business much better than what it is today, because it's highly visible, it's good quality, and it's very fast delivery at a very reasonable price. This is why actually we have quite some hopes around that model, and this is also why we are quite far away from running it at the neutral gross margin in the U.K. On top of that, there's some uncertainty as to what will happen to the logistical business after the pandemic. You can imagine that if you have a choice of going to a McDonald's or ordering in a McDonald's and you have a kids party, that probably you want the kids party not to happen at your house, but to happen at the McDonald's. We do expect a shift there. It's difficult for us to predict what will happen to the logistical business in our company, although we know it has to come down quite a bit for it to grow at 100%. Also what that will do to competitors, because as you know, the competitors only do logistics, and then therefore it's going to be an interesting thing for us to see. The view hasn't changed. It's just you have to be realistic. A Canadian will pay CAD 10 more for a delivery than a German or a Brit, and therefore it's not the greatest investment case in Europe. Around the question about the investments, just certainly most of the investments are going into legacy Just Eat. You should also not underestimate the expansion of our logistical network in countries like Holland and Germany. For instance, if you look at Holland now, we have logistics in 40 cities, give or take. That investment is not as costly as opening, let's say, Berlin or Amsterdam, because we're talking about now places that are 1,000 people, maybe below that. Still it's an investment, so we're still making those investments in those countries. Of course, you have seen the growth in Germany, that's highly profitable growth. Whatever amount of logistics we're going to add is not going to significantly dent the growth of the EBITDA. If you look at what we're doing in Just Eat, yes, we're investing a lot of money in the U.K. We're investing a lot of money in Canada, Australia. You've seen the growth rate in Australia. We're quite enthusiastic about what's going on there. Also think about our leading positions in Spain and Italy. We're putting a lot of effort in those countries. We've announced the rollout of Scoober also in Italy and in Spain. Those rollouts will give us a better weapon to deal with competition. Also there we're investing. It is across the board, but yes, most of it is going to legacy Just Eat. Brent? Yeah. With respect to going forward, as we have explained, and you said it also before, we've invested more or less in three areas, catching up marketing expenses, increasing investment in sales, and logistics. If you look what we're going to do next year, we continue this strategy. What we expect is that, with respect to sales and marketing, we really catched up, and that is what you called at a sort of a normalized level, but investments in logistics will continue. While we do not provide forward-looking statements, however, we said that we prioritize market share gains over profit. That is not new. We have always done that. We've done that in actually any market where we are. We continue investing in logistics and where possible, and I think that in particular, if you look at the strategy going forward and the outcome of it, I think Q4 is a very good reflection. What you can expect next year from us with respect to strategy and also with respect to performance. Excellent. Thank you very much, gents. See. Thank you. We have our next question from the line of Marc Hesselink from ING. Marc, please go ahead. Yeah, thanks. Firstly, on the platform integration on the back-end side, I think you did France now and Spain and Italy. Can you say what your timeline is, or if there's an update? Also if you've seen some benefits from that integration. Yeah, go ahead. No, no. One by one is fine. Thanks. If you look at France in particular, France was a territory in which Just Eat wasn't doing well. France is growing again, that is a benefit, not only platform driven, but it is clearly something that needs to be done and that we're happy about. In terms of timeline, we are planning to migrate most of the European businesses to the legacy Takeaway platform. That's still going to happen. We're on track with that. If you ask me about certain benefits from it reduces the cost of the platform, that's one thing. It gives us, for instance, Takeaway Pay in France. It gives us Scoober. Scoober can also run on legacy Just Eat, but it's easier for us to run it out of the legacy Takeaway software. It gives us some advantages in certain partnerships that we have with, for instance, TripAdvisor, et cetera. It's a website that's typically more Google friendly. There's a couple of those benefits there. In general, the benefit for us is that we're able to now run France as if it were Belgium. I think that's the overarching benefit to us that we don't have to spend a lot of management time on any particular country. Quickly, following up on that, you already alluded on Australia, expect some market share gains there. What can you say of the rest of the world, like countries like France, Spain, Italy, now that you've speeded up the investments? Do you see similar stuff as you see in the U.K., like gaining share on all sides, signing up restaurants, on all those metrics? Depends a little bit on the countries that you're looking at. Poland is performing very well, as an example. France, as I said, we've turned around that situation in France, but we still have a long way to go. If you look at legacy Takeaway countries, they're performing very well. If you look at specifically Spain and Italy, those countries were not performing very well in the first wave. They are performing very well now, so there's also benefit in those countries, and particularly Italy is growing very fast. Yeah, overall, we're in good shape. If you look at our B2B business in Israel, as we know, they are quite good at vaccinating their population. We do expect the B2B business to come back quite quickly now in Tel Aviv, which is going to be beneficial to us because we're mostly a B2B business in Israel, as you know. Overall, we see the same picture across the globe. Okay. Clear. Thanks. Final question is on the increase in active customers. Clearly a lot of people, because of the pandemic, moving onto your platform. As a group, you showed the cohort slide. It seems similar to the past. They come on the platform, and they order more than previous cohorts. Are there different dynamics in those groups on a more individual level? Are there people that use it one time and then they drop off? Is it very similar to the path? Actually, the most significant driver of our growth is, if you look at all our customers, and we have quite a lot of them, as you know. There are customers there that order once a year, and there are customers there that order, let's say, 100 times a year. The growth shift that we have seen is not that people moved from one order to 100 orders. We have seen people move from 10 orders to 13, or from 13 to 16. This is also why it's a sustainable move for us, because it's just that people move from, let's say, lower frequency order cohorts to higher frequency order cohorts. That's also what you see in the cohorts, and that's also why the cohorts are so stable. They're improving, but it's a larger group, of course, so it's a gradual improve on a per customer basis. On the total, it is significant. Yeah, that's great. Our churn is down. Our new users are up. The order frequency is high, not that much, a little bit. The AOV is slightly higher. I think that's important, we currently have no office orders whatsoever. If you look at that segment, we expect that to come back, of course, after the pandemic. We don't necessarily believe that we're going to see less orders from the consumers because, as I said multiple times, most of our business is convenience ordering. That's a pizza on Friday or sushi on Sunday. Only the logistical part of the business is replacement of going to a restaurant. For most of our business, we do expect people to just continue their ordering behavior and then maybe on top order extra at their offices. Okay. That's clear. Thank you. Thank you, Marc. We have our next question from the line of Sebastian Patulea from Jefferies. Sebastian, please go ahead. Hi there. It's actually Giles Thorne here from Jefferies. Hopefully, everyone can hear me okay. My first question is on Scoober in the U.K. You've gone through a recruitment agency. Can you just confirm why you've done that? I'm assuming it's for expediency, but if you could confirm why, and if you could give some color as to how much additional cost that approach brought that perhaps will disappear as you migrate to employing people directly rather than via an agency. Secondly, I wanted to pick up on Wolt's launch in Germany. I appreciate this is a question for Wolt, but I don't get to ask Wolt public forum questions, so I will ask you. What do you think Wolt is seeing about Lieferando in Germany that supports an investment case for launching in Germany at this point? My third question is, I have two. I'll go with the grocery question. Jitse, you've been very clear on why you don't like the idea of grocery at this point. My question is, under what circumstances would you do grocery? Thank you. Thank you. Let's start with grocery first. We're not against grocery. I think that's the wrong way of looking at it. We have analyzed the business case. We don't think it's particularly attractive. If you look at our competitors, they have never spoken about this before the pandemic, so you also have to take this into account. I would hope that we're not in a pandemic for the rest of our lives, so, you could question whether the opportunity is still there after the pandemic. If you analyze the competitors very carefully, I think one of them came out publicly in the U.K. that it's about 10% of their orders. Now, for us to change our strategy for a limited amount of time because we can get maybe 10% of orders in grocery, doesn't seem like a good use of our funds. I think that's the reason that we're careful with grocery. As a service, of course, if we put fast grocery delivery on our website, people will use it. There's no question about it, but we already have to employ tens of thousands of people to put them on our bikes to deliver food to you in 25 minutes, which is already a debatable business case. If on top of that, of course, you do that for a business that has no margin, then it becomes even a more doubtful scenario. Yeah, from a consumer side, we understand it. Priority wise, our priority is to grow very fast, specifically in London, specifically in the U.K., and all those places. In the end, don't forget, people entered grocery because during the lockdown in March and April, a lot of the logistical restaurants were closed. The business for our competitors fell away. You can see that also in the traffic charts. This is why all of a sudden, grocery was a so-called compelling offer. Yeah, we think it's probably, if we have to spend our time, it's the least compelling thing to do. That's why we're not doing it. As I said, I cannot guarantee that we will never do it. You mentioned a competitor Wolt and what they see in the market. Well, you have to understand that in our current sector, a lot of companies are being valued on revenue growth. Let's say we open a business in Pakistan, I am sure our revenue growth will be very fast. Specifically also, if you look at the delivery orders also in Just Eat Takeaway, it grows very fast. It's easy for you to go to investor and say, "Oh, look, we can grow our logistics very fast." The problem though, take Germany. First of all, if you would charge what we are currently not charging, but let's say you charge EUR 150 or EUR 2 more on a delivery in Germany, which will make your proposition worthless because the largest player in the market is much cheaper than you, but okay, let's say you do that, then you get to a neutral margin on a very limited logistical business, and you are competing with a marketplace that does, and we've disclosed this, 2.4 million logistical orders in the quarter. I need to remind you that this is far larger than Foodora and Deliveroo combined at the height of their investments. That was after years of investments. Deliveroo must have invested EUR 50 million. I don't know what Foodora invested. On top of this, we were much smaller, of course, at the time. When we acquired the German businesses of our competitor in 2019, we did 3 million orders in Germany on a monthly basis. Well, you see the amount of orders that we're doing currently. You have to ask them, indeed. I'm appreciative of the fact that you don't get to ask those questions in the public arena. This is possibly the worst investment case I've seen in the business thus far, but I wish them luck. Regarding the recruitment agency that you're asking about in the U.K., we do the same thing. Actually, I'll get to Jörg because Jörg is actually in Berlin, he can comment on it. Yeah. It's actually a partner we work with together also in a couple of other countries, so it helped us also setting up that business as fast as possible. The route to market was very fast because you have to imagine there's a lot of things you need to set up in such a case. We need to look for a hub, we need to recruit a lot of drivers, payroll has to be set up, et cetera. We chose for a partner we're working with also in a couple of other countries who's already knowledgeable in how we work, how things need to be set up. We will analyze going forward which part of that value chain we will internalize and which ones we achieve with a partner. In this case, it was definitely a speed to market. In terms of the question with regards to the cost and how that might change if we internalize it will not change dramatically. The main costs you have at the beginning, which are different, is really in terms of utilization and the staffing of the drivers, which at the beginning, if you do a smaller amount of orders, you might overstaff a bit more to provide a better service. The ramp-up phase until you get to a certain density and the utilization will be lower, so will be less efficient at the beginning. Once you get to some sort of density, then that will improve. From the service provider cost, that will not change too much, but it's more the ramp-up cost at the beginning, which will improve. Very good. Thank you, everyone. Thanks. Thank you, Sebastian. We have our next question from the line of Miriam Josiah from Morgan Stanley. Miriam, please go ahead. Hi there, Miriam. Is your line unmuted? Hello, can you hear me? Hello? Yes, we can. Can you hear me? Please go ahead. Oh, great. Thank you for taking my questions. Three questions from me. Firstly, just on the U.K. again. You said earlier that you're far away from Scoober being fully ramped up. Could you give us a bit more color on how long you think it may take to scale? I guess if we look at the Netherlands and Germany, it seemed like you reached the over two orders an hour pretty quickly. Should we expect a similar pace of progress in the U.K., or do you think it could take a bit longer to get to that level of density? Secondly, a question on the loyalty program that you're launching in Canada. Can you just talk about the rationale behind that, and if that's something you're going to consider launching in other markets? Just generally how you're thinking about the benefits of that program, given there's a bit of debate about whether loyalty programs can generate any positive unit economics. Just wondering how you're thinking about that. Finally, if you could just give us an update on the iFood review. Thanks. Thank you. Regarding your first question, I will take that. The second question, I will just pass on to Jörg. The density question is not really the question for U.K., for Scoober. If you look at the density in certain zones, we will get there very fast. That's just a matter of having the right amount of couriers fitting to the amount of orders that we have in a certain area. The most important thing that we're trying to fix for Just Eat in the U.K. is the position in London. Just Eat actually does quite a lot of orders in London. They're not visible because the couriers are not branded. Scoober in London already in the areas in which we launched, it should be quite visible, and we do expect that to take to, let's say, the end of the first quarter until we cover quite a significant part of London. On top of it, as I said, we'll make the delivery fees free of charge. That should also support the business there. The issue though, of course is, Just Eat covers most of the country with both the marketplace and the logistics. For us to get Scoober in all these spaces, that will take quite some time, but we'll launch a second city quite soon in the U.K. That's going well, but we need to be just conscious of how big already that logistical business is and how much time it will take us to replace it with Scoober. The most important bit, though, is London. We're actually happy with that. For Canada, that, I think, Jörg can take it. Sure. With regards to loyalty programs, we actually do have loyalty programs already in most of our countries. For example, even in countries like Germany, or Netherlands, we do have loyalty programs. In the legacy takeaway countries, these are mainly financed also by partners who are giving subsidies and vouchers, and can redeem points. The consumer can basically redeem points for these sort of vouchers, which are provided by partners. In the U.S., the whole loyalty topic is quite big, and also in Canada. That is why we moved ahead also in Canada with providing this loyalty program. It's a bit early to say what that results into in terms of reorder rates and different sort of things, because we just launched it a few months ago. We will also constantly review our existing loyalty programs in other countries and most likely align it over time. We will have a consistent program across our different geographies as well. We do think, if you set it up in a smart way, also partly sponsored by external partners, it can provide quite some benefits in terms of, especially reorder rates to our customers. On iFood? On iFood, well, you know the intention. We've said that we are open to sell this at a price which is what we consider as fair. That has not happened yet. We will live up to the intention if there is somebody who's willing to pay the right price. With respect to the company as such, as you've seen in the most recent updates that have been provided, the company's grown phenomenally. We are very in support of what the iFood management is doing. From that angle, we are quite satisfied how the performance of iFood is so far. Great. Thank you. Thank you, Miriam. We have our next question from the line of George from Numis. George, please go ahead. Hi. Thanks. Following on the subscription program, how you see the lack of a grocery proposition impacting that proposition compared to other subscription programs out there. If you were to do grocery, whether you might trial that in a country such as Canada, where logistics is much more advanced and consumers are willing to pay for delivery. Any thoughts on that? The second one is, given the logistics penetration that we've seen coming through, particularly rest of world and some of the European markets, whether the potential for anything inorganic would help accelerate that, lead to consolidation and therefore growth. The rationale there. The third one is on France. If you could touch a little bit more there. You said it's back to growth. I guess it still appears to kind of be losing market share. When will France become a bit more central and an area that we will be hearing more on? Jörg, will you take them? Yeah. On the loyalty program, just to give you some background on the Canadian one. It's mainly about collecting points and then redeeming these points for a certain value. That is actually a bit different than what you were suggesting with regards to the proposition of just providing, let's say, free delivery if you become a member of a certain loyalty program. In general, we are already very cheap in terms of our proposal in delivery fees. In some countries, we're not even charging delivery fee. Such a membership program, which some of our competitors are doing, doesn't really add a lot of value because we're anyways providing this already without you having to pay this membership. That program actually is quite some different. I don't believe we need to actually offer such a membership program like you were suggesting because, we're already providing a better price value proposition. In terms of lack of groceries, I do think it's a different sort of proposition, usually also like even a different sort of product. If you really do your full grocery shopping, you actually are providing a very much different proposition in terms of product, and capturing that in the same app, in the same proposition with the same marketing proposition is quite challenging. Help me on the second question again, please. Inorganic growth opportunities in Europe, for instance. Within Europe, every more attractive market already has quite some sizable players in all the markets. I think it's very tough to find organic opportunities within certain markets, because if a market is attractive, it should have already had some sort of a bigger player out there. In terms of our inorganic growth strategy, we've always made clear that if we are expanding, it either has to be a very large profit pool and it has to be a number one position, or we should see the potential that might become a number one in the markets. That would be the criteria we would be looking for. Then to your third question around France. If you look at the legacy Just Eat portfolio, France is currently one of the weaker countries. We have said before, for instance, about the U.K., that a lot of work needed to be done, but that the business, if you look at the situation before Corona, was actually in absolute numbers, still outpacing everybody else in order growth. That's not true for France. France, for us, is a country that's going to take more time to fix. It's not one of the bigger food delivery markets in Europe. Of course, everybody in Europe would understand that, but I'm just saying that for our American colleagues. The biggest market, as we said, are Holland, the U.K., and Germany. Those markets clearly are far more important to us than France. The same time, we don't like France sitting there with us not being the number one. We're addressing the problem. We've launched Scoober in Paris. That's going very well. We'll essentially apply the same recipe that we have applied in other countries as well. If you look at the situation in Holland and Germany, that's clearly the objective also for the U.K. We'll get there in the U.K. France is going to be more difficult, but we're certainly going to venture a try. Yeah. Can I just follow up there? I guess with the U.K., as you mentioned, it had a healthy marketplace to fund the investment into logistics. France may be slightly less the case, perhaps needs more investments. Could you just share a little bit in terms of your strategy in terms of cross-subsidizing you using, let's say, Germany and Netherlands profits to invest, and how you prioritize that investment, which regions? I'm wary of the U.S. acquisition coming in and potential needs further investment into that territory. Well, this is essentially how we always grew, right? I started the business in Holland, a long time ago, and we've used the Dutch EBITDA to grow in Germany. Of course, everybody told us that wasn't possible, but I'm glad that we did it. The same thing has always been the case for us. If you analyze our markets, especially markets like the U.K., Germany, and Holland, those are markets in which you can make an awful lot of money. It's very clear, for instance, that if you focus on Germany, that we'll see ever-growing EBITDA numbers in Germany, and then we can use those funds to invest in other countries. You should not make mistakes, though, where we are going to invest. We do not invest in Pakistan. We invest in the markets in which we are already very strong. If you look at France, in France, of course, I can be critical about what happened in that country before we merged with Just Eat. It happened, and at the same time, the French website is not a small website. It is a very large website also for the country of France, so it's certainly a position that we can improve. However, if I compare that to running a 20 million order website per month in the U.K., think about the 20 million. Also, if you compare it to U.S. competitors, in a much smaller country than the U.S., it's a huge website. Adding to that the things that we believe should have been done already, of course, that's going to be hugely successful. In a country like France, you have a reasonable size website that you need to add logistics to and that you need to invest quite heavily in. You should assume that in a country, as the U.K., we go all out. We do whatever we can to make life very complicated for the competitors. You're only seeing the beginning now, right? We're doing a couple of things, and we are quite aggressive at it, but we're just at the beginning of what we are trying to accomplish in the U.K. France, you should not expect us to go all out in the same way. We might go all out in Paris because of the position and the importance of Paris to the country of France, but you won't see us do the same in, let's say, some town in the South of France. That won't happen. We're always very careful with our money. We do know that in markets in which we are big, whether that's Germany or Holland, whatever we do has some sort of return, and I do believe that we do the right things. Great. Thank you. Thank you, George. We have our next question from the line of Wim Gille from ABN AMRO. Wim, please go ahead. Yes, good morning. Wim Gille from ABN AMRO. Let me see which questions have not been answered. First question will be on Takeaway Pay, or the B2B proposition. You announced it late 2019, at least you announced the launch in late 2019. Can you tell us a bit more where you are in the, let's say, rollout of Takeaway Pay? What needs to happen before this becomes a much bigger scale in predominantly European proposition. The second thing in terms of Scoober. Can you give us a bit more feeling on how you start with Scoober in Paris and London in terms of the number of drops per hour? How long it will take before you reach a more mature level, where you are basically as efficient in London and Paris versus, for example, Berlin or Amsterdam. Lastly, in terms of market share, you gave a nice growth rate in Australia, New Zealand, which is going quite well. Can you give us a feeling based on your calculations where your market share is currently, in Q4 versus last year? Thanks. Sure. The last question I will defer to Jörg, because he probably has some data on it. The first two I will take. Regarding Takeaway Pay, it's going very well on the corporate end. We've signed up a lot of corporates in the countries in which we've launched it. Thus, we expect a surge in orders after the pandemic subsides, obviously because the offices are closed. We do have the contracts in place, we do have quite interesting companies now using it. Yeah, there's no staff at the office. That's why we expect that that will be quite successful after, let's say, April, and of course earlier in Israel. Scoober, I answered that in a previous question as well. Drops per hour are not so difficult to get similar to, let's say, Berlin or Amsterdam in certain areas. The issue with the drops per hour, there's two issues there. If you compare our drops per hour, we calculate that based on the courier. If you compare it to other businesses, they will give you a fantastic drop per hour, they don't calculate the time that the courier is not doing anything, because he would not technically be on the job, it's not a comparable number. The other thing is, of course, that it's an average number. If you look at the whole of London, I would say it's a pretty poor utilization. If you look at the areas in which we've started a couple of weeks back, it's already going to, let's say, Berlin or Amsterdam levels. We're not so concerned about the drops per hour. We know that's what Scoober does. Everywhere where we launch Scoober, we automatically become the largest logistical provider. It has been the same in basically all the cities in which we've launched it. We just talked about Germany, for instance. Yeah, our logistical business in Germany is huge. It's far bigger than any of the logistical players ever gotten in Germany when they were still active. Again, that's not the way we look at Scoober. Scoober, we know it's a good add-on to our business, and we know what this does in terms of order frequency for the marketplace business as well. Wherever we launch Scoober, we have more marketplace orders, interestingly enough. Jörg, if you could give some comments on the market share in Australia. Market share, generally Australia is very happy. If you think about where we've been a year or two from here, it didn't look that well, but we've really turned it around, and it's growing super nicely. In the fourth quarter, growth rates were at 166% in terms of orders, which is super strong, obviously. If you look at various metrics like Google Trends, it seems like there's more search traffic now for our brand than the number one brand there. Similarly, we see also quite some nice market share gains, if you look at other metrics like Similarweb, for example. All we're super confident on the development in Australia. Further rollout of various chains will most likely further fuel that growth going forward. We also continue to invest, and we're applying the same principles like in the other markets to fuel the network effect. It's always about really closing if there is any supply gap, investing heavily in top-of-mind brand awareness and performance marketing. In Australia, obviously also logistics plays a very significant role. The share of logistics there is very high. You have to be very strong on that end as well. Thank you very much. Thank you, Wim. We have our next question from the line of Adrien from Bank of America. Adrien, please go ahead. Thank you, good morning, everyone. I have three questions, please. Under the old management team of Just Eat's, they would normally say that the U.K. should be a market where own delivery should be about 10%-15% of orders. It's now about 25% in Q4 for you guys and even 30% in December. What do you think will be the profile of the U.K. market in the mid to long term? Second question, still around the U.K. Uber has been very clear on their intentions for the U.K. market. We heard from Deliveroo yesterday saying they would enter 100 more cities. Again, where do you think it ends up in the midterm? What risk do you see that the markets in the U.K. goes fully irrational? Thirdly, indeed, you've mentioned that Germany, Netherlands, you've made big investments in delivery. You have the largest logistics business, and yet delivery is only a very small proportion of orders. I'm just curious why that is the case. Thank you very much. Thank you. Regarding your remark about the old management, first of all, that remark was probably a couple of years ago. A lot of things have changed in the meantime, and I don't think that that assessment is right for the U.K. There's more QSRs in the U.K. than there are in continental Europe. This is also why, because a lot of people think the volume is with Local Heroes, the volume is actually with the QSRs in logistics. It's the Local Heroes. The big swing factor is change. I'm fortunate to see that we have the biggest change in the U.K. as a customer of Just Eat. I think that the estimation is too low. Difficult for us to say what the actual amount would be, because as we said, logistics is at least during a pandemic, a replacement market, right? The restaurants are shut, you can't go there. The only way for you to order with these restaurants is actually to order on a food delivery website. It's going to be very difficult. On the other hand, we plan to, in time, run it at a neutral gross margin. You've seen how profitable the U.K., German, Dutch business, other businesses that we own are, if you look at the marketplace business. You will also be able to conclude that nobody else has the marketplace business. For us, the most important bit is to expand our business and do that in a way that makes the whole business more transparent. I think we don't have the luxury to be very selective in terms of, "Oh, yeah, we're only going to do marketplace," or, "We're only going to be doing certain areas of a country." It's either all or it is nothing, and we're going to go for all in the U.K. Your question around the competition. Yeah. I'm always amazed at the ability of certain brands to play the media because, obviously, that particular brand that came with the 100 cities is already in 150 cities. Can you name the 151st city in the U.K. for me, just please? I'm not from there, but it must be a city I have never heard of. Yeah. I wouldn't know. I'm French either. I live in London. I don't know. I'm going to have a go at Yeovil, maybe. I don't know. Can you name the 151st city in France for me? No, you can't, because that's Paris. That's all fine. Just Eat has 100% coverage of the U.K. For these guys at 100 cities and go two-thirds of the country, that's fantastic for them. We're at 100%, we are going to go after London, if somebody else wants to go after 100 hamlets, by all means. The remark of another competitor, yeah. We've seen it. We're giving you our actuals, we're giving you public data. If other people want to talk about things that are not happening, by all means, that's great. Your last question was around delivery being small in countries like Holland and Germany. Well, you need to be conscious of the fact that that is because we have actually launched logistics in our countries. That just means that there was very little market share that went to the competitors. Of course, if a consumer doesn't know whether a restaurant is marketplace or delivery, the consumer has no idea. If the consumer is on a certain platform, the consumer will order, and the consumer will order whatever the consumer wants, and if that's pizza, they will select pizza. If it's McDonald's, it's McDonald's. In the case you offer both, obviously some of the orders are going to be logistics and some of the orders are going to be marketplace. If you only offer logistics, all of the orders are going to be logistics. Logistics in the U.K. is inflated because of the existence of logistical players. That's why it's high. The second reason why it's high is that there are more QSRs in the U.K. Third reason that it's high is because it's a great market. It is the largest market in Europe. We are fortunate to be the market leader in that market. There's a lot of space for us to grow, both in marketplace and in logistics. I think that's the difference. Again, we're repairing what should have been done. Just Eat should have done this a couple of years back. If they would have done so, then probably the logistical share in the U.K. would be lower than it is today. We are where we are. We're repairing this, and we'll have to see what the logistical share is going to be after COVID. I imagine it will be quite a lot smaller than what it is today. Still, because we are in a ramp-up phase, it will be sizable in the U.K. Is it a problem? No. If you can run it at a neutral margin, it's not a problem. Thank you very much, Jitse. If I can just tweak in a follow-up, because you talked a lot about London. Again, previously, it was something like 13%, I think, of Just Eat orders. Where does it stand today? Can you help us size the opportunity for if you're able to succeed in London? Well, first of all, I can't answer that because I don't know. I would give you an inaccurate answer on London itself. I do know that we looked at it, and it is not the case that Just Eat is small in London. It's actually quite big. It's not that far removed from the logistical players. It's just that it is a very different segment. It's only marketplace for the largest part. This is why we're focusing a lot on logistics to repair London. As I said, Scoober has always made us the largest logistical player in a city. I don't see how in a city in which also Just Eat is a huge player, and in a country in which Just Eat is a huge player, why the combination of the largest player in the U.K. and Scoober is not going to be a success. It will be a success that's going to be, what is it, GBP four or five cheaper in delivery fees. It's going to be an interesting battle. Thank you so much. Thank you, Adrien. We have a last question from the line of Andrew from Exane BNP Paribas. Andrew, please go ahead. Good morning, team. Firstly, Happy New Year. Secondly, an answer for you. I think it's Craigavon in Northern Ireland, population of 64,000. Two questions from me. Firstly, head office costs, and obviously that was a bit of a feature of the first half. Just wondering if we would see a significant sequential step up versus the first half, just to help us with our modeling a touch. The second one, and it may be a simple one-word answer, but I'm just wondering in the Grubhub acquisition, whether or not DoorDash's pretty extraordinary IPO changes anything about the investment. Thank you. Thank you. I'll take the last question. I'll give the first to Brent. Well, if anything, it's proof that we pay too little. I'm being sarcastic now. No, it doesn't. Look, the investment case around Grubhub is essentially the same investment case around facts. Well, let's go back in time. Let's go to Germany. We've always focused on the places in which we were strong to expand our business. We've done that in Holland, we've done that in Germany, we've done that on a European scale. We'll do the same in the U.S. I think if people look at that market, as a market with a lot of competition, it doesn't have a lot of competition. The market is a bigger market than all the European countries put together, the European countries put together still, we are of course by far the largest in Europe. Still, there must be around 30, 40 competitors in Europe. So we'll take it, if there's only two significant competitors. And we'll act out of strength because Grubhub does have some strength holes that we can expand and that we can improve. But sorry, I can't tell you more on that. You have to come back in a couple of months. Brent will take the first one. Yeah, well, headquarter expenses have been gone up due to all the investments that we've made. We thought there is necessity to strengthen the headquarter expenses. By the way, headquarter expenses also contain the whole support for Scoober, which is certainly part of the headquarter ramp up. We think that currently the headquarter has been brought at a level which we believe is certainly able to support the business going forward. There will certainly a ramp up this year. Next year it will be only limited because the investment that had to be made have been made this year. Thanks for the answer on, what was it, Craigavon? Craigavon in Northern Ireland, yeah. The 151st, apparently. Just on the headquarter cost, is there a significant ramp up? Sorry? Is there a significant ramp up in headquarters costs in the second half versus the first half? I think in the first half it was EUR 82 million. Just wondering. Yeah, there is a significant head ramp up because of, well, by bringing it together and also investing more in the territories I just mentioned. It is clearly led to a ramp up in the second half of this year. Okay, perfectly clear. Thank you very much, guys. Thank you, and happy New Year again. Thanks. Thank you, Andrew. I will now hand it back to the host for the closing. Thank you. Thanks, everybody. We'd like to round off this analyst and investor call by thanking you for your participation and your questions. Should you have any additional questions or remarks, please reach out to our investor relations manager, Joris Wilton. Thank you. Thank you for joining today's call. You may now disconnect your line.