Questor: as Uber Eats prepares to gobble up market share it’s time to get out of Just Eat

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Just Eat app on phone
Just Eats makes high profit margins in Britain but they may prove tough to defend

Questor share tip: the American giant’s readiness to sacrifice profits for scale is yet another challenge for its British rival

The surprise revelation when Uber published its listing prospectus last month was just how much revenue its food delivery arm, Uber Eats, was contributing to overall turnover. At 13pc, it is at once a business larger than US competitor Grubhub.

Uber needs a growth story given its rocky start as a public company and transporting takeaways around town on top of merely driving passengers could be just the ticket.

Yet to sate investors’ hunger there is evidence that Uber is prepared to rack up greater losses as it chases scale. Only in February it announced plans to cut…

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