Delivery platforms boost restaurant profits in Europe

Uber Eats, a unit of the ride-hailing service, Britain’s Deliveroo and Spain’s Glovo expanded the market by supplying their own delivery to chain restaurants. (Reuters/File)
Updated 02 December 2019

Delivery platforms boost restaurant profits in Europe

  • We are in front of a big business opportunity, says Uber Eats’ European head

LONDON: Food delivery platforms are helping independent and chain restaurants in London, Paris, Madrid and Warsaw serve more meals every week, boosting the sector’s revenue and profit, according to a Deloitte report commissioned by Uber Eats.

Food delivery has grown rapidly across Europe, initially driven by companies such as Just Eat and that offered marketplaces for restaurants that had their own delivery services.

Uber Eats, a unit of the ride-hailing service, Britain’s Deliveroo and Spain’s Glovo expanded the market by supplying their own delivery to both independent and chain restaurants.

The share of restaurants that reported an overall increase in sales after joining the Uber Eats was 69 percent in London, 74 percent in Paris, 67 percent in Warsaw and 59 percent in Madrid, according to the report.

Uber Eats’ European head Stephane Ficaja said the survey was commissioned to gauge the impact the company was having on the 60,000 restaurants that had joined its platform in 250 cities across Europe in little over three years.

“We were hoping to see top line and bottom line growth, that means that restaurants generate not only more revenue thanks to food delivery but also more profit,” he said in an interview.

The growth was seen by small independents and big chains, which were able to compete on a level playing field on the platform, he said.

The biggest number of extra meals delivered as a result of third-party platforms was seen in London, where 606,000 servings were made by chain restaurants and 305,000 through independents weekly, resulting in a £323 million ($414 million) increase in annual revenue and £189 million of extra profit a year, it said.

A 4.7 percent rise in meals served was seen in Paris, while there was a 1.5 percent increase across the board in Madrid and a 1.9 percent rise in Warsaw, the survey found.

The food delivery sector has already started to consolidate, and two Netherlands-based companies — Just Eat and Prosus — are competing to buy Britain’s Just Eat.

Uber Eats, like its parent, is loss making. Its revenue increased by 64 percent to $645 million in the third quarter but its loss on the adjusted earnings level widened by 67 percent to $316 million.

“We are still in front of a big business opportunity. We still have a lot of markets where delivery is not mature where we need to invest,” Ficaja said.

Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

Updated 01 June 2020

Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

LONDON: Arab News has published the recording of an interview with a Nissan lawyer after he denied saying that a bailout of Lebanon by the International Monetary Fund (IMF) was linked to the extradition of fugitive tycoon Carlos Ghosn.

The former Nissan chairman fled to Beirut in December from Japan, where he faced charges of financial wrongdoing.

In a story published in Arab News Japan on Saturday, Sakher El Hachem, Nissan’s legal representative in Lebanon, said the multibillion-dollar IMF bailout was contingent on Ghosn being handed back to Japan. 

The lawyer said IMF support for Lebanon required Japan’s agreement. Lebanese officials had told him: “Japan will assist Lebanon if Ghosn gets extradited,” the lawyer said

“For Japan to agree on that they want the Lebanese authorities to extradite Ghosn, otherwise they won’t provide Lebanon with financial assistance. Japan is one of the IMF’s major contributors … if Japan vetoes Lebanon then the IMF won’t give Lebanon money, except after deporting Ghosn.”

On Sunday, El Hachem denied making the comments. “The only thing I told the newspaper was that there should have been a court hearing on April 30 in Lebanon, but it was postponed because of the pandemic,” he said. In response, Arab News published the recording of the interview, in which he can be clearly heard making the statements attributed to him. 

Japan issued an arrest warrant after Ghosn, 66, escaped house arrest and fled the country.

Now listen to the recording: