Just Eat Takeaway.com NV experienced a notable setback in the first quarter of 2024, with its shares dropping by over 5% following a reported decline in order volumes and gross transaction value (GTV) globally, despite market share gains in the United Kingdom and Ireland (UK&I). The food delivery company revealed a 6% decrease in total orders, amounting to €214.2 million, with a particularly stark 10% drop in its North American business. This regional downturn contributed to a 2% reduction in group GTV to €6.5 billion.

In contrast, the UK&I market emerged as a silver lining, with Just Eat posting a 1% increase in orders to €60.3 million and a 7% rise in GTV to €1.7 billion. Shore Capital, an analyst firm, highlighted Just Eat's competitive pricing strategy in the UK&I, where the average basket order is approximately £1 cheaper than those on rival platforms. This pricing approach, combined with an 11% growth in GTV in the UK&I - outpacing mid-single-digit industry growth rates - reinforces Just Eat’s stronghold in the region, even as economic pressures loom large. Just Eat's cost-effective offerings are seen as crucial to retaining and attracting customers seeking value in the face of rising living costs.

Despite these regional gains, Just Eat's global challenges, particularly in North America, sparked discussions among analysts and experts about the company's strategic focus. eToro analyst Adam Vettese suggested that Just Eat might need to reconsider its efforts in competing with dominant players like DoorDash and UberEats in North America. This comes amid ongoing exploration by Just Eat of a potential sale of Grubhub, its North American subsidiary, which saw a 12% decline in orders and an 11% fall in GTV for the region. Jitse Groen, CEO of Just Eat, did acknowledge growth in Grubhub's campus ordering business, which saw a 28% increase in orders and now represents a larger share of the North American segment.

Apart from operational challenges, Just Eat also announced plans to cease operations in New Zealand, citing its position as a non-leading player in a small market. This decision contrasts with its continuing presence in Australia, where the company claims a significant market share.

Just Eat's mixed quarterly performance, characterized by a strong showing in the UK&I amidst broader struggles, underlines the complex dynamics at play in the global food delivery sector. As Just Eat navigates these challenges, market watchers and investors will likely scrutinize the company's strategic decisions, particularly its potential retreat from North America and its efforts to consolidate gains in its more successful markets.