Jan 15, 2020

Greggs deal with Just Eat heats up UK delivery wars

Greggs has struck a partnership with Just Eat, preventing delivery rivals Uber Eats and Deliveroo from offering the British bakery chain's sausage rolls and other products across the UK as restaurant groups reassess their work with the burgeoning sector. Exclusive partnerships have been a popular way for large chains to test the economics of food delivery since Deliveroo and Uber Eats began providing delivery logistics to restaurants that lack their own couriers. "Just Eat seemed to be a better match for us when we were looking at the locations that we had presence in," said Richard Hutton, finance director of Greggs. Its deal with Just Eat comes as McDonald's exclusive agreement with Uber Eats in the UK is expiring, according to people familiar with the terms, potentially allowing the burger chain to partner with Uber's rivals. Mr Hutton said another reason Greggs had chosen Just Eat was because it had committed to a £1.50 delivery charge, the lowest in the market.

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