Consolidation is coming to the crowded online food delivery space. Just Eat has acquired both Hungryhouse, a British company, and SkipTheDishes, a Canadian startup. Last year Just Eat acquired Orderit.
Just Eat bought Hungryhouse from Germany’s Delivery Hero for 200 million euros to bolster its foothold in Britain and SkipTheDishes for CAD $200 million to strengthen its position in Canada, which the company considers key markets.
Food-based startups have been launching often in recent years. Chef’s Plate, launched in 2014, recently raised $6 million and now has more than 100 employees.
There’s also Ritual, founded in 2014 as well, which helps consumers order food and coffee with an emphasis on independent establishments. And Foodee, a food concierge service serving offices, this year raised $6 million to expand from Canada into the US.
These are just some of several examples. But the market demand is capped, it seems. There are only so many restaurants and only so many consumers who want to order this way. We may see some of the smaller players get scooped up in the coming years as the market matures.