Prosus's EU-Approved Just Eat Takeaway Deal: A Strategic Play for Global Food Delivery Dominance

The European Commission's conditional approval of Prosus's €4.1 billion acquisition of Just Eat Takeaway.com (JET) marks a pivotal moment in the global food delivery sector. By requiring Prosus to divest its 27.4% stake in Delivery Hero to below 10% and relinquish board influence, the EU has sought to preserve competition in a market already dominated by JET and Delivery Hero in 18 countries. Yet this deal, if finalized, will position Prosus as the world's fourth-largest food delivery player, trailing only Meituan, DoorDash, and Uber. For investors, the transaction underscores a broader trend: the consolidation of fragmented markets through strategic acquisitions, driven by AI-driven logistics and regulatory pragmatism.

Strategic Implications of the Deal

Prosus's move is not merely a regulatory compliance exercise but a calculated repositioning. By integrating JET's 18-country footprint—356,000 restaurant partners and 879 million orders in 2024—with its AI-optimized logistics from iFood (Brazil) and Swiggy (India), Prosus aims to create a global delivery network. The company projects €1 billion in annual cost savings and €10 billion in revenue by 2030, leveraging AI to reduce delivery times by 30% and boost customer retention. This aligns with the EU's own push for digital sovereignty, as seen in its EuroStack initiative to build homegrown cloud infrastructure.

However, the deal's success hinges on navigating regulatory scrutiny. The EU's antitrust fines against Delivery Hero and Glovo for cartel activities highlight the bloc's vigilance. Prosus's concessions—selling Delivery Hero shares and ceding board control—signal a willingness to adapt to EU norms, but they also mean sacrificing potential synergies. For investors, the key question is whether these trade-offs will pay off in the long term.

Market Consolidation and AI-Driven Efficiency

The European food delivery market, valued at $410 billion in 2025 and projected to grow at 9.11% CAGR to $824 billion by 2033, is ripe for consolidation. JET's dominance in urban centers, combined with Prosus's AI expertise, could disrupt traditional models. For example, JET's “Green Delivery” initiative, which uses electric bikes and reusable packaging, aligns with EU sustainability goals and could attract environmentally conscious consumers.

The integration of AI into logistics is a critical differentiator. Uber Eats' Dynamic Routing System, which reduced delivery times by 15% in 2023, and Just Eat Takeaway's AI-driven personalization tools demonstrate the sector's shift toward data-centric operations. Prosus's ability to replicate these efficiencies across its global platforms will determine its competitive edge.

Regulatory Risks and Investment Considerations

While the EU's approval is a green light, it is not without caveats. The bloc's AI Act and Digital Services Act (DSA) impose strict data governance and transparency requirements, which could complicate cross-border operations. Prosus's €50 billion shareholder return program and $443 million in adjusted EBIT in 2025 suggest financial resilience, but regulatory delays or additional concessions could strain short-term liquidity.

Investors should also weigh the broader geopolitical context. The EU's partial deregulation of AI to compete with U.S. and Chinese tech giants may create a more favorable environment for consolidation. However, the bloc's emphasis on ethical AI and data privacy could limit scalability compared to less regulated markets.

Long-Term Outlook for the Sector

The food delivery sector is entering a phase of tech-driven consolidation. Just Eat Takeaway's acquisition of Grubhub in 2021 and Deliveroo's investment in cloud kitchens exemplify this trend. For Prosus, the JET deal is a bet on AI's ability to optimize a fragmented market. If successful, it could set a precedent for similar consolidations in Asia and North America, where regulatory hurdles are less stringent.

Investors with a long-term horizon should consider the following:
1. AI Integration: Companies that leverage AI for logistics and personalization will outperform.
2. Regulatory Adaptability: Firms that align with EU sustainability and data governance norms will gain first-mover advantages.
3. Geographic Diversification: Expanding into underpenetrated markets (e.g., rural Europe, Southeast Asia) offers growth potential.

Conclusion

Prosus's JET acquisition is a strategic masterstroke in a sector defined by rapid technological change and regulatory complexity. While the EU's conditions impose short-term constraints, they also create a framework for sustainable growth. For investors, the deal represents a high-conviction opportunity in a market poised for transformation. However, success will depend on Prosus's ability to balance regulatory compliance with innovation—a challenge that could redefine the global food delivery landscape.