Prosus, a South African multinational technology company, has announced that its food delivery business, Just Eat Takeaway (JET), has returned to growth after 55 months of year-on-year declines. According to CEO Fabricio Bloisi, JET's orders had been falling 9% when Prosus took control in December. However, Bloisi revealed in a letter to shareholders that orders have started growing again, with September marking a significant milestone. This turnaround is attributed to efforts to improve technology, logistics, product offerings, customer retention, and marketing.
The resurgence of growth at JET is a crucial development for Prosus, which completed its R83 billion acquisition of the company through its international unit last year. This acquisition marked Prosus' second attempt to acquire Europe's largest meal delivery company, making it its largest investment to date. Bloisi emphasized that returning to growth is just the first step, and the company will continue to work towards making every order more profitable. He cited the success of Prosus' playbook in Brazil, where the company has achieved cost leadership through technology.
In addition to updating shareholders on JET's progress, Bloisi provided an update on iFood, Prosus' food delivery business in Brazil. Despite intensifying competition in the market, Bloisi expressed confidence in the long-term value of Prosus' ecosystem in Brazil. With 80 million recurring customers, iFood holds a significant position in the market, with approximately 80% of the app market share nationwide. Bloisi noted that while competitors have been spending heavily and losing money, iFood has managed to maintain its market share.
Bloisi attributed the success of iFood in Brazil to its efficient operations and exceptional customer base. He acknowledged that competition in the market has increased over the past 18 months, with competitors spending around $150 million per month and losing significant amounts of money. However, Bloisi expressed Prosus' readiness to navigate this competitive landscape, having experienced similar situations in the past. He emphasized that Prosus' investments in JET and iFood are strategic decisions, driven by the potential for growth and profitability in these markets.
Beyond JET and iFood, Bloisi provided updates on other businesses within the Prosus ecosystem. OLX, which operates online marketplaces and classified ads platforms, is reportedly growing strongly and profitably. Online travel agency Despegar is deeply connected to the Latam ecosystem and growing more than 20%. Payment business PayU is also profitable and scaling. Bloisi highlighted that these businesses provide earnings strength, enabling Prosus to invest in defining its future.
According to Bloisi, Prosus is investing more in JET and iFood, driven by their growth potential. He acknowledged that this investment comes at the expense of short-term profitability but is necessary for a stronger, more defensible, and faster-growing business in the long term. Bloisi outlined two priorities that will define Prosus' future: retaining its capability to have the best food delivery operation in the world and accelerating innovation to build leading AI lifestyle ecosystems.
Bloisi expressed encouragement by Prosus' progress, citing early evidence of success, including orders returning to growth at JET and market share holding at iFood with efficient economics. He emphasized the need for continued execution to achieve Prosus' goals, with 2026 being a key year for implementation. The company's focus on innovation and growth is expected to drive its future success.
Key points
- Just Eat Takeaway has returned to growth after 55 months of year-on-year declines.
- Prosus is investing in JET and iFood to drive growth and profitability.
- The company aims to retain its capability to have the best food delivery operation in the world and accelerate innovation to build leading AI lifestyle ecosystems.
