Just-Eat, a company that serves as an online ordering provider for takeaways and restaurants, has just raised £10.5 million from prominent European VC firm Index Ventures.
It's the first institutional funding for the UK-based startup, which has 6,000 takeaway and restaurant partners throughout Europe.
Just-Eat allows its partners to accept orders online from customers for home delivery. It handles payment processing, submits orders and gives customers estimated delivery times. It also provides discovery services -- a directory of restaurants, online menus and customer reviews.
The company's focus is on "local, independently run businesses" who might otherwise not have the resources to build their own online ordering platforms.
The company's fundraising represents a good example of some of the changes VCs are making during tough times. According to Ben Holmes, a partner at Index Ventures:
The home delivery market is growing at 9% per year and it has proved to be a profitable business even in recessionary periods.
Given that, it's not surprising that Just-Eat isn't without competition. hungryhouse.com, which hasn't (yet) raised institutional financing, has been in business in 2003 and serves the same market.
I wouldn't be surprised to see more businesses like Just-Eat pop up. Commerce, especially at the local level, is a big opportunity and as the recession drags on, markets like home delivery, which may not seem so sexy, will become more attractive, including to VCs, many of whom have been burned by recent investments in more 'exciting' markets.
Photo credit: dslrninja via Flickr.
Patricio Robles is a tech reporter at Econsultancy. Follow him on Twitter.
5:15PM on 14th July 2009
Don't forget about 118menu.co.uk !
6:20PM on 14th July 2009
118 menu - hahahahahahahahaha!!!!
4:32PM on 4th September 2009
I much prefer 118menu we use it in the office at least once per week. Just becuase you have lots of money doesnt mean people will use you. In fact most people prefer the underdog
3:44PM on 18th September 2009
118menu are a joke, never received my order first time and was an hour late second time. Although I guess that was more the takeaways fault.
11:43AM on 19th October 2009
Just Eat are nothing but thiefs, took my registration money and gave me one order!!! £250 it cost me for a order.. what a bunch of jokers.. 118menu, hungryhouse, eat-takeaway.co.uk, fillymybelly are all genuine people not like Butress and Rune, not forget Ali- all dishonest people. They are good because they conned the VC company out of 10 million pounds, talk about hussel!!! Lets do a petition against Just-Eat???? MB
3:54PM on 20th October 2009
Lets do it Mohammad.they charge £250 for a box worth nothing and dont send you any order.
I preffer meal2go.com
7:28PM on 2nd November 2009
Not only do just-eat con the resturants they also con the customers aswel, Orders not being delivered and no refunds given. RUBBBBISH!
12:17AM on 24th February 2010
I would appreciate it if you provided a link to my website for the use of my photo on your website.
www.dslrninja.com
Thanks,
Scott
9:25PM on 14th December 2010
i tried <a href="http://www.imeal.co.uk">imeal.co.uk</a> the other day and it was great, food arrived when said and they even called me to confirm it was on it way! Great service
9:30PM on 14th December 2010
i tried www.imeal.co.uk the other day and it was great, food arrived when said and they even called me to confirm it was on it way! Great service
6:00PM on 21st March 2011
Just eat took 6 weeks to refund my money when a restaurant was closed. Then instead of crediting the amount they debited the amount instead. How can an online company like this take money from your bank account without authorisation, surelly that is illegal.I only pay by cash now!