Online delivery platform Just Eat is looking to expand further into the grocery market in Ireland.
A new report from the platform reveals that grocery is a rapidly growing area for the food delivery and takeaway sector with almost a quarter of Irish people having used a food delivery service to order groceries in the past year, spending an average of €174.30 on grocery delivery services in a month.
Over the last 12-18 months, grocery has been a key focus for Just Eat globally and is an area of rapid growth for the business. It says customers can expect more choice and flexibility when ordering via its platform in the future, as it forges new partnerhips with supermarkets and convenience retailers.
The Just Eat Takeaway & Food Delivery Report examines trends and consumer habits. The total annual expenditure on food delivery and takeaway orders in the Irish market is an estimated €2.2 billion, excluding VAT.
When it comes to Ireland's consumption habits, on average consumers order a takeaway 2.9 times per month, spending an average of €46.49 on their favourite cuisines. The report also finds that ordering food is mostly a shared experience, with 54% of restaurant partners saying orders are for at least two people while 37% say the average takeaway order is for a family. Only 9% of orders are for solo eaters.
Amanda Roche Kelly, Managing Director of Just Eat Ireland, said the report shows that overall, there is a positive outlook for the sector, and it remains resilient despite challenges that are facing all businesses at present such as increased energy costs and the demand for labour.
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The EU is moving to tighten the regulation of gig economy companies like Just Eat and improve the rights of platform workers. Earlier this month, EU labour ministers endorsed a general approach to the Platform Workers Directive.
"The gains made by the sector during the Covid-19 pandemic have not waned significantly in the last year but it's important that the industry does not become complacent and continues to innovate and evolve."
Ms Roche Kelly said in Ireland, Just Eat spends a lot of time talking to its couriers, and have looked at various different models to role out in Ireland.
"At the moment, the flexibility is what the couriers are looking for," she said. "It allows them to choose their hours, choose their zones that they work in, choose the companies that they work for - they can actually work for our competitors as well, and also be paid by delivery, they don't have to be set to any particular number of deliveries or hours.
"It is all at the beginning of the directive, but I guess our values would be that couriers are treated fairly, that they are looked after and treated safely, and that underpins everything that we're going to do."
Highlighting the important role sustainability plays in consumer choices, a third of those surveyed for the report say they would select a restaurant that uses sustainable takeaway packaging over one that only uses regular plastic, with a further 45% stating that it would be a consideration.
Just Eat says it is encouraging restaurant partners to embrace a wide variety of sustainability initiatives to lower the environmental impact and carbon footprint of the food delivery and takeaway industry.
A key innovation has been the introduction of Notpla’s seaweed coated takeaway boxes by Just Eat to restaurant partners in Ireland as an alternative to the industry norm of plastic or bio-plastic lining.
Since the launch of this packaging in October 2022, Just Eat Ireland has seen a staggering 450% uplift in sales of Notpla packaging in 2023 vs the same period last year.
