Just Eat Takeaway.com (JTKWY), mcap=$4.1bn, price $3.82 vs $2.81

– Combination of Takeaway, Just Eat, and Gubhub businesses.
– Just Eat and Grubhub were by themselves acquisition targets with bids at 2x today’s JET’s market cap.
– VC-funded bubble allowed competitors to launch subsidized 1P food logistics operations.
– A 2-sided marketplace is a much better business model than a 3-sided marketplace.
– Operating cash flow gives JET a long-term competitive advantage to fend off 1P competitors where needed.

– In 5 years expected to process €65bn of orders.
– With a net profit of 3.5% of volume, set to generate €2bn in profits.
– At 10x-20x multiples could be worth €45-50 billion in the medium-term.
– Individual geographical segments are worth more than the current mcap.

Exp. gain: 15x in the medium term.

Full $JTKWY write-up (free guest account required):

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