food tech & delivery marketplaces in europe...b2b b2c & d2c food & biotechnology...
TRANSCRIPT
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What is food tech
B2B B2C & D2C
Food & biotechnology Robotics (warehousing, delivery)
Farm management IoT & iSensing
Supply chain technologies Wholesale marketplaces
In-store retail & restaurant tech Table bookings
Home, cooking tech, IoT Delivery marketplaces
Innovative food
Online supermarkets
Meal kits
3
€5.3 billion has been invested in European food tech
startups since 2012
€ 0.3B € 0.2B
€ 1.2B
€ 1.5B
€ 0.7B
€ 1.4B
–
100
200
300
400
€ 0.0B
€ 0.4B
€ 0.8B
€ 1.2B
€ 1.6B
2012 2013 2014 2015 2016 2017
Total amount (€M) Number of rounds
Investment in European food tech
4
2012 2013 2014 2015 2016 2017
€ 0.1B € 27M € 0.5B € 0.6B € 0.4B
€ 3M € 0.2B € 0.3B € 0.4B
€ 0.4B
€ 45M € 0.2B € 0.1B
€ 25M € 0.1B € 0.2B
€ 15M € 0.1B
€ 42M
Total (€M) € 0.1B € 0.1B € 1.1B € 1.2B € 0.3B € 0.8B
€3.6 out of the €5.3 billion (= 69%) has been invested
in a handful of major food delivery platformsInvestment in Leading food delivery marketplaces
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Investment in other Food Tech areas has been on a
steady growth path
€ 0.1B
€ 0.1B € 0.1B
€ 0.2B
€ 0.4B
€ 0.6B
€ 0.0B
€ 0.1B
€ 0.2B
€ 0.3B
€ 0.4B
€ 0.5B
€ 0.6B
€ 0.7B
2012 2013 2014 2015 2016 2017
Investment in Europe’s food delivery marketplaces Investment in other European Food Tech
€ 0.1B € 0.1B
€ 1.1B
€ 1.2B
€ 0.3B
€ 0.8B
€ 0.0B
€ 0.2B
€ 0.4B
€ 0.6B
€ 0.8B
€ 1.0B
€ 1.2B
€ 1.4B
2012 2013 2014 2015 2016 2017
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Selected corporate deals in food tech
Acquisitions Investments
Tazo, Mãe Terra, Pukka Herbs, Sir Kensington’s Gousto, Milkbasket, Sun Basket, Chromatin
Tails, Terrafertil, Chameleon Cold Brew, Blue Bottle Coffee, Sweet Earth Foods
Freshly
Five Star Custom Foods, EWOS Puris, Memphis Meat, Calysta
- Tovala, Beyond Meat, Future Meat Technologies, Memphis Meat
HungryHouse, SkipTheDishes, Hellofood, Pizzabo, Menulog, Deliverex, Clicca e Mangia, Food2u, AlloResto
FlyPay, SinDelantal, TouchBistro, iFood,
Foodfly, FoodPanda, Foodora, e-food.gr, Jidloted, Pizza.de, Foodarena
Hungry Group, Click Delivery, MyLorry,
VizEat, Couverts, BestTables, SeatMe, LaFourchette, MyTable, Eatigo
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Europe’s largest consumer market opportunities.
Travel is furthest with online migration ...
Note: excludes finance1. Estimates by Dealroom based on equity research and companies’ investor presentations. Sources: PwC, Rocket Internet, Statista, Phocus Wright, company information.
Restaurants & bars€ 500 billion
10%booked online
Groceries€500 billion
<1%
Home & Living€200 billion
3%
Taxi €30B
6%
Delivery €30B
20%
Healthcare services€2 trillion
2%
Online penetration
Fashion€300 billion
10%
Wellness€100 billion
n/a
40%booked online
Flights €100B
40%booked online
Hotels €90B
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... while food is a €1 trillion+ opportunity at the very
nascent stages of online migration
Note: excludes finance1. Estimates by Dealroom based on equity research and companies’ investor presentations. Sources: PwC, Rocket Internet, Statista, Phocus Wright, company information.
Restaurants & bars€ 500 billion
10%booked online
Groceries€500 billion
<1%
Home & Living€200 billion
3%
Taxi €30B
6%
Delivery €30B
20%
Healthcare services€2 trillion
2%
Online penetration
Fashion€300 billion
10%
Wellness€100 billion
n/a
40%booked online
Flights €100B
40%booked online
Hotels €90B
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Food has high order frequency, and in case of
supermarkets, high basket value
v High order valuex Low order frequency
v High order frequencyv High order value
x Low order valuex Low order frequency
x Low order valuev High order frequency
Order frequency
Ave
rage
Ord
er
Val
ue
Source: Fabrice Grinda (adapted by Dealroom).
Hotels ($200+)
Real Estate
Doctor Booking
Handyman
Taxi($8)
Grocery ($100)
Food Delivery
($20)
Cars
Meal kits ($40)
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Marketpower & commission are higher when supply
is abundant or the platform creates efficiency/demand
15-30%
10-15%
5-10%
0-5%
Source: Dealroom.
Hotels
Flights
Table bookings
Food delivery
Supermarket
Co
mm
issi
on
Market power
Fashion
Taxis
11
Trend towards more vertical integrated marketplaces
Meta-searchClassifieds Model
& Yellow Pages
Transactional
Marketplaces
Integrated
marketplaceeCommerce
Yelp Just Eat DeliverooHelloFresh
Amazon Prime
Owns listing v v v v
Handles
transactionv v v
End-to-end
solutionv v
Owns
inventory riskV
Revenue model Lead generation
Classified ad
(= listing fee or
subscription fee)
Transaction
commission
Transaction
commission (+ SaaS)
Unit sales /
subscription
Higher commission, more operational risk
Source: dealroom.co. Inspired by https://medium.com/point-nine-news/marketplace-from-broker-to-full-stack-operator-1d1d1aaf9c7f
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€ 5.0€ 4.0
€ 1.8
€ 0.5
€ 2.5
€ 1.0
€ 1.0
€ 1.0
€ 1.5
€ 1.5
€ 1.4
€ 2.8 € 3.0
€ 1.5
€ 6.0
€ 9.0
€ 10.5
€ 6.5
Income Expenses Income Expenses Income Expenses Income Expenses
New markets . Market leadership . New markets . Market leadership
Unit economics in food delivery:
Deliveroo model vs. Just Eat model
Source: Dealroom estimates, company reports.
Avg. order €12x 12%
commission
Avg. order €20x 15% commission
Avg. order €20x 30% commission
Avg. order €30x 35% commission
91% loss
50% loss
38% profit
50% profit
Net revenue per order
Marketing
Marketing
Marketing
Other
Other
Other
Order-only platform model Integrated delivery model
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Uber EATSAmsterdam, Bordeaux, Brussels, London, Lyon,
Madrid, Manchester, Milan, Moscow, Paris, Stockholm,
Vienna, Warsaw
European food delivery: the strategic landscape
Dominantly #1 in UK, Italy, Spain, Portugal, Denmark
Also #1 France
#1 in Germany (not dominant), Sweden, Finland
#2 in Poland
Present across Eastern Europe since FoodPanda
acquisition in December 2016
Present across Eastern Europe (and Asia and LatAm)
Focus on emerging markets
Dominantly #1 in Benelux and Poland
Strong #2 in Germany
Leader in premium segment
Strong #2 in France
Leader in Barcelona and Madrid with “order
anything” concept
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Glovo: the Spanish on-demand delivery platform has
demonstrated that later market entry is possible
Source: Dealroom.co, Similarweb, Glovoapp.com, Priori Data.
0.0M
0.5M
1.0M
1.5M
2.0M
2.5M
Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18
About ▪ Anything you order through the app in less than one hour
Description ▪ One of the most popular delivery apps in Spain
▪ Top product is food delivery but most customers order
multiple categories
Founding ▪ In 2015 by Oscar Pierre and Sacha Michaud in Barcelona
Funding▪ Last round was €30M Series B in Sept 2017 led by
Rakuten and Cathay Innovation
▪ Total funding €37M
Countries▪ Countries: Spain, France, Portugal, Italy, Latin America,
Eatern Europe
Glovo key facts The most popular food apps in Spain (last 90 days)
Website visits is an indication of relative mind share
Spanish Desktop & mobile web visits (last 6 months)
iOS rank ~50th ~100th ~200th
Android rank ~60th ~100th ~200th