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Hungryhouse
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Hungryhouse
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Hungryhouse.co.uk was an online takeaway food order and delivery service founded in 2006 and merged with Just Eat in 2018. It allowed users to search for restaurants and browse local takeaway menus before placing an order online and being delivered by the restaurant with a small service charge for using their service.

Key Information

In January 2013, the company was bought by Berlin-based holding company Delivery Hero.[2] In February 2018, Hungry House became part of Just Eat following a successful merger. Hungry House ceased trading on 22 May 2018 and customers were diverted to Just Eat.[3]

History

[edit]

Co-founders Shane Lake and Tony Charles founded Hungryhouse in 2003, launching the online platform in 2006. The co-founders appeared on BBC One's investment show Dragons' Den [4] in 2007, with an offer of £100,000 investment coming from James Caan and Duncan Bannatyne.[5]

The investment deal with the Dragons later collapsed, with a £150,000 investment coming from alternative business angels.[6][7] The initial round of funding was used to expand the business, increasing Hungryhouse's restaurant partners from 150 in 2007 to 2,500 in September 2010.[8]

In February 2013, it was announced that Hungryhouse was to be bought by the Berlin-based food ordering giant Delivery Hero, operating in 16 countries with a total of 60,000 restaurant partners.[9][10]

In December 2016, Just Eat announced that it was acquiring Hungryhouse from Delivery Hero for £200 million (with the possibility of a further £40 million if the company hits performance targets), subject to regulatory approval.[11] In May 2017, the proposed acquisition was referred to an in-depth phase 2 investigation by the Competition and Markets Authority (CMA).[12] On 12 October 2017, CMA gave a preliminary approval for Just Eat to acquire its smaller rival.[13]

In April 2018, Hungry House announced it would cease trading on 22 May 2018 and merge with Just Eat.[14]

References

[edit]
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Hungryhouse

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from Grokipedia
Hungryhouse was a United Kingdom-based online platform for ordering and delivering food, founded in 2006 by Shane Lake and Tony Charles, which enabled users to search for local restaurants, browse menus, read customer reviews, and complete payments digitally before its acquisition by in 2017, with the service closing in 2018 and the company formally dissolved in 2020. The company, originally incorporated as Hungryhouse.com Ltd in 2003 under the business activity of web portals, launched its service in 2006 and quickly gained prominence after its founders pitched the concept on the investment show in 2007, securing investment that fueled early growth. Following significant expansion, Hungryhouse was acquired by the German food delivery firm in 2013, which integrated it into its portfolio and supported further development into a major player in the UK market with partnerships across over 10,000 restaurants from cities like and to and Birmingham. In December 2016, agreed to sell Hungryhouse to for an upfront payment of £200 million, plus up to £40 million in performance-based earn-outs, aiming to consolidate 's dominance in the competitive online takeaway sector amid rapid market growth. The deal faced scrutiny from the (), which conducted a Phase 2 investigation into potential anti-competitive effects but ultimately cleared the merger unconditionally in November 2017, allowing to integrate Hungryhouse's operations and customer base to enhance its platform's reach and profitability—Hungryhouse was projected to contribute £12–15 million in operating profits for 2017. Following the acquisition, the entity operated under until its formal dissolution on 10 March 2020, marking the end of its independent existence as a key innovator in the digital landscape.

History

Founding

Hungryhouse was founded by Shane Lake and Tony Charles in 2006 as an online platform facilitating takeaway food ordering and delivery in the United Kingdom. The idea originated in 2004 during brainstorming sessions inspired by a U.S. online ordering model and a scene from the 1995 film The Net, where the founders sought to leverage emerging internet technology to streamline the traditionally cumbersome process of ordering food from local takeaways. Motivated by the desire to address inefficiencies in phone-based ordering—such as long wait times and limited options amid growing UK internet adoption—they aimed to create a convenient digital alternative for consumers. The platform officially launched in February 2006, initially concentrating operations in with a straightforward that connected users to nearby restaurants for direct online orders and subsequent delivery. This setup allowed customers to browse menus, place orders securely, and later leave reviews, marking an early adoption of user feedback in the sector. At the time, the online market was in its infancy, with the vast majority of takeaway orders still handled via , requiring Hungryhouse to educate both consumers and restaurants on the benefits of digital platforms. Early challenges included building a viable user base in this underdeveloped market and securing initial capital, which proved time-consuming and resource-intensive for the bootstrapped venture. Despite these hurdles, the founders focused on through local partnerships, laying the groundwork for expansion beyond the capital.

Dragons' Den Appearance

The episode in which Hungryhouse co-founders Shane Lake and Tony Charles appeared on the BBC's aired on 19 November 2007, where they pitched their online takeaway ordering platform, seeking £100,000 in exchange for 11% equity. They emphasized the platform's scalability and potential to streamline by allowing customers to browse menus and place orders directly from local restaurants via the , positioning it as a convenient alternative to phone-based systems. During the episode, investors and expressed interest and jointly offered £100,000 for 50% equity—£50,000 each—leading to an initial handshake agreement on the spot. A key moment came when the dragons probed the founders on their unique , with Lake and Charles defending the business's growth potential in the emerging online ordering market. The deal collapsed shortly after the pitch amid valuation disputes, as post-pitch due diligence revealed the founders had secured a more favorable £150,000 offer from another party, prompting Caan and Bannatyne to withdraw. Despite the failed , the television exposure generated substantial media attention for Hungryhouse, enhancing its visibility and driving a surge in user sign-ups even without the Dragons' funding.

Independent Growth

Following its initial launch in , Hungryhouse pursued organic expansion across the from 2008 to 2012, transitioning from a local service to one with nationwide reach targeting urban centers. The platform's network grew rapidly, increasing from approximately 150 partners in 2007 to 2,500 by September 2010, enabling broader coverage of major cities beyond the capital. This development was supported by an angel funding round of $293,000 in May 2008, which helped fuel operational scaling. By early 2012, Hungryhouse had further expanded its partnerships to 4,500 restaurants, encompassing the majority of the UK's urban population and solidifying its position as a key player in . A pivotal milestone came in 2011 with the launch of its app, allowing users to browse menus and place orders via mobile devices, with an Android version following soon after to enhance accessibility and drive user engagement. The company also rolled out targeted marketing campaigns in urban areas during 2011 and 2012, including television and digital advertisements, to attract new customers and promote the convenience of its commission-based model, where it earned fees on each order facilitated. Amid rising competition from platforms like , which secured significant venture funding in 2009, Hungryhouse focused on technical enhancements to maintain reliability, including upgrades for real-time order tracking and processing to handle increasing volumes. Starting around 2009, the service broadened its restaurant partnerships to include major chains, diversifying offerings in categories such as , Chinese, and , which helped overcome early scalability challenges and contributed to steady revenue growth through higher order commissions.

Acquisition by Delivery Hero

In January 2013, Berlin-based completed its full acquisition of Hungryhouse, following an initial merger and stake purchase initiated in March 2012, with the deal structured as a share swap for an undisclosed amount. This move marked 's strategic entry into the online food ordering market, where it aimed to challenge the dominant player by leveraging Hungryhouse's established infrastructure. At the time, Hungryhouse operated a network of over 11,000 restaurants and generated approximately £6 million in monthly sales, providing with immediate scale in a fragmented but growing sector. The acquisition enabled to integrate Hungryhouse into its global operations, which spanned 12 countries and supported more than 33,000 restaurants worldwide, facilitating shared resources and expanded reach. One immediate operational change was the absorption of orders from the smaller competitor EatitNow.co.uk, which Hungryhouse took over on , , streamlining the market presence. Post-acquisition, Hungryhouse benefited from 's broader investment, including a $285 million funding round that supported rapid expansion in technology and capabilities, leading to the business tripling in size since the initial 2012 merger. By late , marketing efforts intensified, with increased budgets aimed at building and capturing more against competitors. Co-founders Shane Lake and Tony opted to remain involved following the share swap, transitioning into supportive roles within the enlarged organization; specifically, Charles moved into a position to drive further development. This continuity helped maintain operational momentum during the integration phase, contributing to sustained growth in orders and revenue under Delivery Hero's oversight.

Operations

Business Model

Hungryhouse operated as a pure aggregator platform in the market, functioning as an intermediary that connected consumers with takeaway restaurants via its website and . In this model, the company facilitated orders but did not handle fulfillment or delivery, leaving those responsibilities to the partnered restaurants. Consumers accessed the service for free, with no delivery fees charged to users, allowing the platform to focus on user acquisition and order routing. The core revenue stream for Hungryhouse derived from commissions paid by restaurants, typically set at a standard rate of 14% of the order value, alongside additional fees such as one-time sign-up charges for new partners and payments for promotional placements. Unlike subscription-based models, Hungryhouse generally avoided ongoing monthly fees for restaurants, emphasizing transaction-based earnings to incentivize participation. This structure aligned with industry norms for aggregators, where restaurants bore the primary costs of order and delivery. Hungryhouse's economics relied on network effects inherent to two-sided platforms, where an expanding roster of restaurants drew more consumers, in turn boosting order volumes and further attracting vendors in a virtuous cycle. This scaling dynamic supported growth without proportional increases in fulfillment costs, as the company maintained low overheads as a digital intermediary. Primary expenses centered on to acquire users and restaurants, as well as technology maintenance for the platform, contributing to reported operating losses despite rising revenues of £29.1 million in 2016.

Service Features

Hungryhouse provided users with core functionalities centered on simplifying . Customers could search for restaurants by entering their postcode or using GPS to locate nearby options, filtering results by cuisine types such as Indian, Chinese, or . Once a restaurant was selected, users browsed detailed digital menus categorized by sections like starters, mains, and drinks, allowing for easy customization of orders. Real-time order tracking was available through the platform, enabling users to monitor the status of their delivery from preparation to arrival. Payment integration supported multiple methods, including credit and debit cards, , , and , facilitating secure transactions at checkout. The platform introduced innovations to enhance user convenience, notably with its mobile app launched for iPhone in September 2011, followed by an Android version shortly thereafter. This app incorporated GPS-based suggestions to recommend restaurants based on the user's current location, streamlining the discovery process beyond postcode entry. Additionally, Hungryhouse implemented a reward system tied to user activity, offering discounts and incentives for repeat orders to encourage loyalty among frequent customers. These features positioned the service as a mobile-first solution in the UK takeaway market. User tools focused on informed decision-making, with a reviews and ratings system that allowed customers to assess restaurants based on prior experiences. Introduced early in the platform's operation, this system displayed aggregated ratings and textual feedback, helping users evaluate service quality, food accuracy, and delivery speed before placing orders. The website and were designed for compatibility across devices, including desktops, smartphones, and tablets, ensuring broad accessibility for ordering food nationwide.

Restaurant Partnerships

Hungryhouse established partnerships with over 10,000 restaurants across the by 2016, encompassing a wide array of independent takeaways in cities from to . These collaborations enabled restaurants to list their menus on the platform, reaching a broad customer base seeking convenient ordering. The onboarding process for restaurants was straightforward and cost-free, allowing establishments to join without upfront listing fees, though it often involved incentives like waived sign-up costs in competitive or underserved areas and commitments to platform branding. Once partnered, restaurants received training on utilizing the order , a tool introduced since the platform's early operations in to handle incoming orders efficiently. This integration facilitated seamless processing via proprietary terminals, minimizing operational disruptions. To support its partners, Hungryhouse provided dedicated account managers to assist with day-to-day operations and optimization strategies. Restaurants also gained access to tools through online portals, offering insights into , order trends, and metrics to inform menu adjustments and inventory decisions. Additionally, the platform offered promotional co-op marketing opportunities, including national and local campaigns where restaurants could participate in co-branded initiatives to boost visibility. These partnerships delivered mutual benefits, with restaurants reporting significant order growth attributable to Hungryhouse's customer acquisition efforts. Online platforms like Hungryhouse contributed substantially to many restaurants' takeaway revenues, primarily by expanding reach to new customers who preferred digital ordering over traditional phone calls. This support allowed vendors to focus on food preparation while the platform managed and , fostering sustained expansion.

Acquisition by Just Eat and Closure

Merger Announcement

On December 15, 2016, Just Eat announced its agreement to acquire Hungryhouse from Delivery Hero for an initial cash consideration of £200 million, subject to potential earn-outs of up to £40 million based on post-acquisition performance, for a maximum total value of £240 million. The deal, subject to regulatory approval, marked a significant consolidation in the UK online food ordering sector, where Hungryhouse had been operating under Delivery Hero's ownership since 2013. The acquisition aimed to bolster Just Eat's dominance in the UK market by merging the two platforms' operations and bases, thereby enhancing scale and efficiency amid growing competition from services like and . Just Eat reported 9.2 million active in the UK for 2016, and integrating Hungryhouse's user base was expected to further solidify this position while capturing additional market share. Just Eat's CEO David Buttress highlighted the move as a way to extend market presence and sustain long-term growth. Market reaction to the announcement was generally positive, with 's shares rising 2.6% in early trading on the London Stock Exchange. Analysts, including David Reynolds from Jefferies, praised the deal for enabling consolidation in the online marketplace model, reducing competitive pressures, and positioning more strongly against emerging rivals in . The companies outlined plans for a phased integration process, anticipating £1 million in exceptional costs related to the transition in 2017, while projecting Hungryhouse to deliver £12-15 million in operating profits that year excluding those expenses. This approach signaled no immediate closure of Hungryhouse, allowing for a smooth migration of customers and restaurant partners to Just Eat's platform over time.

Regulatory Review

In May 2017, the UK's (CMA) referred 's anticipated acquisition of Hungryhouse for a phase 2 investigation, following an initial phase 1 review that identified potential risks of a substantial lessening of competition in the online takeaway ordering market. The referral stemmed from concerns that the merger, announced in December 2016, could reduce competitive pressure in a sector where already held a dominant position, potentially leading to higher commissions for restaurants and reduced choice for consumers. During the phase 2 inquiry, the CMA analyzed market shares, competitive dynamics, and from stakeholders, including restaurants and rival platforms. Provisional findings released on 12 2017 indicated that Hungryhouse provided only limited competition to , with its market influence having declined due to financial challenges and lack of . Although initial concerns focused on possible increases for consumers and worse terms for restaurants, further showed that emerging logistics-focused competitors like and UberEATS exerted stronger constraints on than Hungryhouse ever did. The CMA issued its final report on 16 November 2017, unconditionally clearing the merger without imposing remedies such as divestitures or data-sharing requirements. This approval, after modifications to the inquiry timeline, avoided structural interventions and allowed the deal to proceed, highlighting how the CMA balanced dominance risks against the weak position of the acquired entity in a consolidating market. The process illuminated broader antitrust issues in the food delivery sector, where mergers among platform leaders can prompt scrutiny over innovation stagnation and market foreclosure, even if specific transactions do not ultimately warrant intervention.

Shutdown and Integration

In April 2018, Hungryhouse announced its closure after 12 years of operation, with the platform ceasing to accept orders on May 22, 2018. This decision followed the completion of its acquisition by on January 31, 2018, and subsequent regulatory approval by the in November 2017, enabling full integration into Just Eat's operations. The integration process involved automatically redirecting Hungryhouse users to the Just Eat platform, with restaurant contracts transferred to expand Just Eat's network from approximately 30,000 to over 40,000 partners. Customers received notifications about the transition, and loyalty points were converted to equivalent rewards on Just Eat to maintain continuity. The migration was completed ahead of schedule in 3.5 months using data-driven segmentation and tailored offers to minimize disruption, successfully transferring over 1.5 million users with limited reported issues. As a result, Just Eat absorbed Hungryhouse's market share, achieving a 16% increase in UK active customers to 12.2 million and a 27% rise in UK revenue to £385.6 million in 2018, establishing a unified dominant platform in the UK online sector. The process incurred £7.5 million in integration costs but delivered expected synergies and strengthened competitive positioning against rivals like . Following the integration, Hungryhouse.com Ltd was formally dissolved on 10 March 2020.

References

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