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Amazon leads $575M investment in Deliveroo

Amazon is taking a slice of Europe’s food delivery market after the U.S. e-commerce giant led a $575 million investment in Deliveroo .

First reported by Sky yesterday, the Series G round was confirmed in an early U.K. morning announcement from Deliveroo, which said that existing backers, including T. Rowe Price, Fidelity Management and Research Company and Greenoaks also took part. The deal takes Deliveroo to just over $1.5 billion raised to date. The company was valued at more than $2 billion following its previous raise in late 2017, although no updated valuation was provided today.

London-based Deliveroo operates in 14 countries, including the U.K., France, Germany and Spain, and — outside of Europe — Singapore, Taiwan, Australia and the UAE. Across those markets, it claims it works with 80,000 restaurants with a fleet of 60,000 delivery people and 2,500 permanent employees.

It isn’t immediately clear how Amazon plans to use its new strategic relationship with Deliveroo — it could, for example, integrate it with Prime membership — but this isn’t the firm’s first dalliance with food delivery. The U.S. firm closed its Amazon Restaurants U.K. takeout business last year after it struggled to compete with Deliveroo and Uber Eats. The service remains operational in the U.S.

“Amazon has been an inspiration to me personally and to the company, and we look forward to working with such a customer-obsessed organization,” said Deliveroo CEO and founder Will Shu in a statement.

Shu said the new money will go toward initiatives that include growing Deliveroo’s London-based engineering team, expanding its reach and focusing on new products, including cloud kitchens that can cook up delivery meals faster and more cost-efficiently.

[Center] Will Shu, Deliveroo CEO and co-founder, onstage at TechCrunch Disrupt London

Read more: https://techcrunch.com/2019/05/16/amazon-takes-a-bite-into-deliveroo/

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Asian food delivery startup Chowbus raises $4M

When one food delivery startup fails, another gets funded.

Chowbus, an Asian food ordering platform headquartered in Chicago, has brought in a $4 million “seed” funding led by Greycroft Partners and FJ Labs, with participation from Hyde Park Angels and Fika Ventures. The startup, aware of the challenges that plague startups in this space, says offering exclusive access to restaurants and eliminating service fees sets it apart from big-name competitors like Uber Eats, Grubhub, DoorDash and Postmates.

The Chowbus platform focuses on meals rather than restaurants. While scrolling through the mobile app, a user is connected to various independent restaurants depending on what particular dish they’re seeking. Chowbus says only a small portion of the restaurants on its platform, 15 percent, are also available on Grubhub and Uber Eats. 

The app is currently available in Chicago, Boston, New York City, Philadelphia, Champaign, Ill. and Lansing, Mich. With the new investment, which brings Chowbus’ total raised to just over $5 million, the startup will launch in up to 20 additional markets. Eventually, Chowbus says it will expand into other cuisines, too, beginning with Mexican and Italian. 

Chowbus was founded in 2016 by chief executive officer Linxin Wen and chief technology officer Suyu Zhang.

“When I first came to the U.S. five years ago, I found most restaurants I really liked [weren’t] on Grubhub nor other major delivery platforms and the delivery fees were quite high,” Wen told TechCrunch. “So I thought, maybe I can build a platform to support these restaurants,”

TechCrunch chatted with Wen and Zhang on Tuesday, the day after Munchery announced it was shutting down its prepared meal delivery business. Naturally, I asked the founders what made them think Chowbus can survive in an already crowded market, dominated by the likes of Uber.

“The central kitchen model doesn’t work; the cost is too high,” Zhang said, referring to Munchery’s business model, which prepared food for its meal service in-house rather than sourcing through local restaurants.

“We don’t own the kitchen or the chef, we just take advantage of the resources and help restaurants make more money,” Wen added. “The food delivery space is really huge and growing so quick.”

Read more: https://techcrunch.com/2019/01/24/asian-food-delivery-startup-chowbus-raises-4m/

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