BREAKING NEWS: CMA clears way for delivery firms to merge their businesses

Just East website

The Competition and Markets Authority (CMA) has cleared Just Eat’s acquisition of Hungryhouse, following an in-depth phase 2 investigation.

A group of independent panel members found that the merger does not raise competition concerns.

The web-based food ordering platforms give restaurants the opportunity to reach a wider pool of people, as well as offer consumers the convenience of choosing from a large range of takeaway providers in one place.

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As first indicated in the provisional findings, the group found that Hungryhouse presently provides limited competition to Just Eat because it is much smaller in size and offers too few unique restaurants. This makes it increasingly difficult for Hungryhouse to attract and retain consumers.

Furthermore, it found that the industry is evolving rapidly following the entry of platforms such as Deliveroo, UberEATS and Amazon, which also manage or facilitate delivery services on behalf of restaurants.

These companies generally present a greater competitive challenge to Just Eat than Hungryhouse, and this is likely to grow as they expand.

In reaching its final conclusion, the group also took account of the fact that some customers may order directly from takeaway restaurants, either by telephone, through their websites or by walking in.

Tags : acquisitionCMAdeliveryHungryhouseJust Eat
Andrew Seymour

The author Andrew Seymour

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