Just Eat & Online Food Delivery in Spain | In Practise

Just Eat & Online Food Delivery in Spain

Former Head of Sales at Just Eat, Spain

Learning outcomes

  • How Glovo entered the Spanish market late but have 50% market share
  • The opportunities and risks of the top placement listing for Just Eat
  • How Uber or Deliveroo could challenge Just Eat for restaurant customers in the suburbs
  • Importance of driving density with restaurant brands like McDonald's
  • Risks to Just Eat's positioning in small and large cities
  • The breakeven drops per hour for vendors if they need to pay a third-party contractor like Mox for drivers
  • Potential winners and losers in the Spanish cities and suburbs
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Executive profile

Jaume Boada

Former Head of Sales at Just Eat, Spain

Jaume has nearly 10 years of experience in the online food delivery market in Spain. He is the Current Head of Spain at Mox, Spain’s largest last-mile delivery company that delivers food for Just Eat, Uber, and Glovo, where he is responsible for dealing with the large vendors and hiring drivers. Jaume was previously Head of Sales for Just Eat in Spain where he was responsible for onboarding restaurants in small and large cities across Spain. Read more

Could you please share some insight into your role and responsibilities at Just Eat?

I started working at Just Eat eight months after it was launched in Spain. The commercial structure consisted of a sales director and then four people – myself included – who were in Madrid, Valencia, Seville and Barcelona. We were selling directly to the restaurants, in those cities, as well as launching new cities, such as Bilbao, Palma de Mallorca, Murcia. After a year and a half, and with a stronger commercial structure, the company decided that there should be a regional sales manager for half of Spain, managing a team of seven people, organizing the launch of new cities and also selling directly to medium-sized restaurant chains, who had 20 to 30 restaurants.

In January 2017, the company appointed me as head of sales, managing a team of 14 people in the field as well as people in telephone positions. We managed to increase the offer of restaurants, launched in new cities and implemented new processes and established the company growth strategies.

What was Just Eat’s strategy, when they entered Spain?

During the launch, it was to achieve the largest possible offer of restaurants, with mixed cuisine. The offer brings the demand. It was very concentrated in large cities. At the same time, the other strategy was to make the brand as visible as possible. As there was no large marketing budget, part of the visibility was achieved with the stickers on the doors of restaurants, with the stickers being as large as possible. 25% of new users we achieved was due to the stickers on the restaurant doors.

At that time, the quality of the restaurants didn’t matter so much. The important thing was to attract new restaurants, that had their own delivery and the more motorcycles they had, the better. That meant that they were able to cope with a greater volume. We paid special attention to Chinese restaurants which were the ones with the most orders. At the same time, we began to scale, in various departments, depending on the needs. This was particularly relevant in the area of operations and customer care.

The commercial department looked for small delivery companies to deliver to restaurants who didn’t have their own delivery service. Finally, we started to think that Just Eat needed to have their own riders, in 2016. In the first years we had a big problem in Spain, because the Spanish restaurants don’t tend to have their own bikers. Eventually, the commercial department realized they had to find small companies to help us to contract with restaurants who don’t have their own delivery service.

So only a very small proportion of the restaurants in Spain actually had drivers themselves?

Yes. I can give you the example of Barcelona. When I joined Just Eat, in Barcelona, there were 150 restaurants making deliveries. Now there are more than 1,000 restaurants making deliveries in Barcelona. When we entered into the market, the big problem was that the restaurants were a bit fearful of Just Eat, because they thought we would steal users. They were used to receiving their orders by phone and they thought that we would steal these customers, so it was a bit difficult. The best way that the sales department could do it was to find a small delivery company that could help us to contract with restaurants who were not making their own delivery.

You mentioned how 150 restaurants in Barcelona actually delivered. Is that just a Spanish cultural thing?

Today, it’s more than 1,000.

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Just Eat & Online Food Delivery in Spain

August 12, 2020

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