OrderYoyo plans to snatch the takeaway crown
Serial entrepreneur and investor Thor Angelo has thrown his weight behind OrderYoyo, and plans to overtake Just Eat as the go-to service in the Nordics to order food to your home.
OrderYoyo, who received early investment from SEED Capital , are also said to be in dialogue with international investors.
Helle Uth, Investment Manager at SEED Capital, explains in a press release:
“We first invested in April 2015, and Order Yoyo has since enjoyed impressive growth. They are one of the companies that done well from the start. We look at the numbers of customers that use the platform and are pleased with the solution. The team executes fantastically, and we are not afraid to invest again.”
Giving restaurants more power
OrderYoyo is an app and a website offering a subscription service aimed at taking down their competition. The company provides custom web-ordering platforms and a printing terminal to each of their restaurant customers to ensure orders reach the kitchen. But they have also drastically lowered their service costs. If, for example, a restaurant provides food for 350 customers worth a value of €7,000, Just Eat would take approximately €1,500, whereas OrderYoyo charges approximately €130.
This is a financial advantage for restaurants and a coupe for OrderYoyo, who now have 450 restaurants on their platform, 30 of which are among the top 100 of Just Eat’s customers.
The company has also gained a foothold in the UK, which represents 33% of the entire European takeaway market. It is predicted that OrderYoyo will overtake Denmark’s number 2 takeaway service, Hungry.dk, by the summer.
Sharp criticism of Just Eat’s business model
85 percent of all take-away orders are from regular food customers and don’t go through food portals such as Just Eat, which is “completely insane”, according to Thor Angelo.
According OrderYoyo’s own research, Just Eat takes 20% of their customers turnover. This is exactly the weakness that OrderYoyo plans to exploit.
“Just Eat makes sense as a lead generator, but that customers must pay a quarter of their turnover, which is quite wrong. The first lead is allowed to be expensive, but not the next 20. OrderYoyo gives restaurants the power back, “says Thor Angelo.
Expert in e-commerce and In2media partner Tim Frank Andersen questions the Just Eat model:
“When you look at e-commerce in general, it is normal to use online marketing in search of leads. Then you get customers to do repeat business from your own platform. In the takeaway business, we see a slightly different pattern where customers are fed back to Just-Eat after every sale. The reason why Just Eat has been able to operate as they do is that it has been too expensive for each takeaway restaurant to make a solution themselves, but now OrderYoyo has created a solution that is much cheaper and can disrupt this model.”
Tim Frank Andersen says that it makes good business sense for takeaway restaurants to have their own platform to ensure ownership and loyalty of their clients.