- Groupon is a campaign push model. Having access to campaign channels to push new products, or support periods with low business volumes in an industry with high fixed costs is an advantage, but it will never change the normal, day-to-day support that Just-Eat provides. Our model secures restaurants a steady flow of orders every day, all year round.
- Groupon typically charges 40-50% of the transaction value for their services, our average is around 10%. That makes a massive difference for a restaurant and underscores the point above. It is not sustainable to have a significant part of your business brought in via Groupon week-in and week-out.
- Groupon works together with all local merchants, Just-Eat focuses 100% on delivery restaurants. This means, that even though the core of our relationship with the restaurants is based on providing a steady flow of extra orders, then we do a lot of other things for the restaurants. For example, we provide customer care, great discount offers on products and services they need to do business, technology services, we invite them to restaurant conferences to get news from the sector, etc. Our ambition is to be significant and integrated partners with the delivery restaurants.
- As a minor but not irrelevant point, it is worth mentioning, that the mechanism used to support the transaction on Groupon and other group buying sites result in some level of manual, administrative work for the restaurant. At Just-Eat we provide digital two-way communication between our servers/customers and the restaurants via our terminal technology, i.e.everything incl. billing is automated and very easy to manage for the restaurant.
Recently many have asked me about the relationship and difference between online takeaway ordering via Just-Eat and group buying via Groupon. That is natural given the phenomenal growth of the group buying concept, the fact that they are a local concept just like ours and because some of Groupon's many vouchers are related to the restaurant industry. In reality, there is not a lot of overlap between the Groupon and Just-Eat use case. The differences are much bigger than the similarities. For the restaurants perspective, the key differences are as follows: