Owned by an investment fund with experience of bringing companies to IPO, Appetise is an online takeaway marketplace with 370 restaurant partners and 60,000 live customer accounts. It is a value competitor in the £6bn industry, offering cheaper deals for restaurants and customers than Just Eat.
We are an online marketplace connecting customers with takeaway restaurants and charging restaurants a commission on each order placed via our platform.
The sector is dominated by Just Eat (market cap £5.4bn), which charges its restaurant partners joining fees of up to £699 and up to 14% commission, and its customers 50p service fees. With no exclusivity arrangements between restaurants and Just Eat, we saw an opportunity to take market share with a better deal for restaurants and customers: our customers pay no fees and can make savings with our loyalty scheme, and our commission to restaurants is only 10% with no joining fees.
Our only fixed costs on each order are card processing fees and we have no involvement in cooking or delivery. Unlike Deliveroo, no capex is required to run a delivery fleet so we believe our model is low cost and easily scalable.
The UK takeaway market is worth over £6bn (£7.6bn by 2020) but online penetration is still less than 50% (70% by 2019); even without taking market share there is a £3bn and growing addressable market.
From 2016, we focused on improving the platform and concentrating our restaurant base in Birmingham. As a result, revenues have been modest but we believe this work has put us in a strong position for an aggressive marketing push to expand rapidly to other key regions and grow revenues with our ultimate target being an exit via IPO.