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The Spoon

Daily news and analysis about the food tech revolution

food delivery

Indian Food Delivery Startup Swiggy Raises $800 Million

India-based food delivery startup, Swiggy, has raised an addition $800 million in funding, The Economic Times reported today. The round was led by Falcon Edge, Amansa Capital, Think Investments, Carmignac and Goldman Sachs, with participation from new investment from sovereign wealth funds Qatar Investment Authority and GIC of Singapore. This brings the total amount of funding raised by Swiggy to roughly $2.4 billion.

India went on a severe national lockdown during the pandemic last year and Swiggy reportedly saw its daily business drop to processing fewer than one million orders a day, down from three million prior to the pandemic. The strict measures forced Swiggy to cut more than 2,000 jobs and scale back on its ghost kitchen ambitions.

But the Economic Times writes that food delivery was designated an essential service by the Indian government and that since then, both Swiggy, and its rival, Zomato have rebounded. Each company recorded their highest levels of business on December 31.

In an internal email sent out to the company (and viewed by The Economic Times) announcing the new funding, Swiggy Co-Founder and CEO, Sriharsha Majety wrote:

The fundraise gives us a lot more firepower than the planned investments for our current business lines. Given our unfettered ambition though, we will continue to seed/experiment new offerings for the future that may be ready for investments later.

With its new funding, Swiggy is now valued at $5 billion. The fundraise and new valuation come as Zomato, which is valued at $5.5 billion is prepping to go public later this year.

GrubMarket Raises $90M to Make Its Food Delivery Service Available Nationwide

Virtual food marketplace GrubMarket announced today it has raised $90 million in an oversubscribed Series D round, up from $60 million when the round was first announced in October 2020. Participants include “funds and accounts” managed by BlackRock, ACE & Company, Celtic House Venture Partners, Sixty Degree Capital, The Strand Partners, Reimagined Ventures, Trinity Capital Investment, Madison Bay Capital Partners, Marubeni Ventures, GGV and others.

GrubMarket connects consumers with farmers via an extensive online marketplace where customers can shop for grocery items and some household goods. GrubMarket also has a B2B component through which it sells wholesale goods to grocery retailers, restaurants, corporate offices, and other business settings. The company counts Whole Foods, Kroger, Hello Fresh, Blue Apron, and many other companies among its customers.

Meanwhile, its WholesaleWare platform, which is a software platform food companies can use to manage their businesses. That includes anything from inventory and financial management to HR tasks and driver routing.

Mike Xu, GrubMarket’s CEO, said in a statement that the Series D round was originally intended to be no more than $30 million, and that the company has made “efforts to keep this round $100 million.” He said the new capital will allow the company to invest more in talent, technology, and acquisitions in the future. The company also plans to “expand to most regions of the country” over the next 12 months. In October of 2020, Xu said his company plans to go public, but did not give an exact timeframe for an IPO.   

Online grocery as a category is expected to account for 21.5 percent of all grocery sales by 2025, and companies currently offer all manner of takes on the concept. Right now that includes big-box retailers like Walmart, those like Rosie that are focused on independent grocers, and those like Imperfect Foods, which cater to specific niches of the buying public. GrubMarket’s “farm-to-pantry” approach certainly serves a demand, since buying direct from farms has increased among consumers.

But Grubmarket’s focus more and more appears to be on reinventing the supply chain and doing away with some of the inefficiencies there, hence the WholesaleWare platform and the growing B2B customer base. Expect that portion of the business to grow substantially from the new infusion of capital. 

Sunbasket Transitions from Meal Kit Player to ‘Full-Service Meal Delivery Company’

Sunbasket, best known for its meal-kit subscription service, announced today it is broadening its product line and evolving to become “a full-service food delivery company.” The newly revamped service will offer a range of different food items to consumers, from full meals to snacks and pantry staples.

Reaching more potential customers, including those who need something more convenient than a full-on meal kit, seems to be at the heart of this transition. “The onset of COVID-19 forced consumers to quickly adopt new habits when it came to food, and Sunbasket was inspired to reflect on our company’s values to better serve our customers,” said Don Barnett, CEO, Sunbasket, said in a statement. Barnett added that he believes the company’s “refreshed emphasis on convenience will be appealing to even more people.”

To that end, the Sunbasket site now carries a mix of meal kits, heat-and-serve meals, meats (plant-based and traditional), dairy products, pantry staples, and snacks.

What is not completely clear from Sunbasket’s revamped website is whether a user still has to sign up for a subscription in order to get the pantry staples. From the looks of it, you would still need to sign up for a meal plan (either a meal kit or the heat-and-serve option), at which point you could add other staples onto your existing order. As has always been the case with Sunbasket, the commitment is month to month.

Today may be the official announcement for Sunbasket’s expanded roster of foods, but the company has dropped hints of such a transition for some time. In 2019, it expanded its dinner-only lineup to include breakfast and lunch meals, as well as add ons like granola butter and single-serving snacks.

And while the traditional meal kit is seeing some resurgence because of the pandemic (everyone’s eating at home), the sector’s ongoing struggles are well-documented. Most meal kit companies, including Kroger-owned HomeChef, Purple Carrot, and Blue Apron, have added a wider variety of food items as well as some customization features.

Sunbasket’s move to offer grocery items is a first in the meal kit sector, but it’s one of many examples of previously narrowly focused food companies expanding to incorporate online grocery into their wares. Misfits Market and Imperfect Foods, both companies that originally focused on rescuing cosmetically “ugly” fruits and veggies, have since expanded their services to include online marketplaces where all manner of pantry goods and food supplies can be bought. As a meal kit company, Sunbasket’s core business differs from these two companies, but it’s newly announced expansion appears to be similar.

With online grocery shopping expected to hit $250 billion and account for 21.5 percent of all grocery sales by 2025, it wouldn’t be surprising if other meal kit companies soon follow Sunbasket’s lead.

India: Potful Fights Plastic Waste By Delivering Biryanis in Handmade Clay Pots

We’re always on the lookout for companies that combat plastic waste in unique ways. Zero Grocer offers plastic-free grocery shopping. Dishcraft is working on reusable takeout containers. Planeteer makes cutlery you can eat.

Over in India, a food delivery startup called Potful is showing its love for mother earth with actual earthenware. Potful cooks and delivers Biryanis in handmade clay pots. Order a meal, keep the pot, and Poftul even includes coriander seeds with orders so the pots can be turned into planters. The Biryanis are cooked to order and cost between 560 – 660 Rupees (~ $7.59 – $9.00 USD).

The company started a few years back in Bangalore and recently launched in the Hyderabad area of India. This approach to sustainable food delivery was intriguing, so I reached out to Lokesh Krishnan, Founder and CEO of Potful. Our emailed Q&A is below and has been slightly edited for clarity.

The Spoon: Can you please explain what a biryani is?
Lokesh Krishnan: Biryani is a mixed rice dish with its origins among the Indian subcontinent. It is made with Indian spices, rice, and meat, or vegetables and sometimes, in addition, eggs and/or potatoes in certain regional varieties. Biryani is popular throughout the Indian subcontinent, as well as among its diaspora. It’s a Persian dish and Mughals brought the recipe to India centuries ago. 

The beauty of the dish is it’s a meal in itself, very balanced (has carbs, proteins and fat) and affordable. Everyone in South Asia loves it irrespective of age, income groups. 

You are cooking and delivering biryanis in the same clay pot. How does this impact your ability to grow? 
Cooking biryani in claypot method is the most traditional and authentic way of cooking biryanis. The process is know as ‘Dum Cooking” and when you do, the flavours are intact and every grain of rice would taste different compared to any other form of cooking. We have built a time and weight based process using technology and have de-skilled the entire cooking process to scale rapidly. so scaling / growing is not an issue at all. 

How often would a typical person order a biryani? I’m just wondering about clay pots stacking up around the home.
There are markets where people order every single day but most will order at 3-4 times a month. People are very familiar with the dish and hence when they are not sure of something, the first thing which comes on their mind is biryani. Its the No. 1 online ordered dish in India today on any online food aggregator platforms. 

When did you launch, and are there any numbers you can share, such as order growth?
We launched our operation in Aug 2017 in Bangalore, the silicon valley of India. We operate under cloud / dark kitchen model and have 15 kitchens in the city as of now. We have just launched the product in Hyderabad (south of India) which is the mecca for Biryanis in India and our vision is to build world’s largest biryani company and put this dish on global platform. 

Can you expand this model to other foods?
Yes you can. But we would like to stay focused on biryanis for now. 

Anything else you think I should know?
While we make authentic biryanis through this process, it’s also important to see how we are doing this business. It’s about sustainability. We don’t use plastics. It’s about responsibility. The claypots are made in hand by artisans and hence as we grow it supports the livelihood of these people. We also send seeds with every biryani and encourage the consumers to reuse the pots and grow vegetables at home or even paint it and use it to decorate your home and garden. In addition, the food cooked in earthen pot is much more healthier than any other form of cooking because of the heat exchange. 

Everytable Raises $16M to Fight Food Insecurity With Delivery

Social-enterprise-meets-restaurant-business Everytable announced this week it had closed a $16 million Series B funding round to continue its fight against food insecurity. The round was led by Creadev with participation from Kaiser Permanente Ventures, Candide Group, Gratitude Railroad Ventures, Desert Bloom Food Ventures, and Kimball Musk. This round brings Everytable’s total funding to $18.5 million. 

Company founder Sam Polk started Everytable in 2015, after leaving Wall Street, with the idea of selling grab-and-go meals priced according to the neighborhoods in which they were sold. Everytable’s main mission was — and still is — to make nutritious meals accessible to everyone, regardless of their socio-economic bracket.

The Los Angeles-based company has since added a meal subscription service where users choose meals from a rotating menu. Everytable chefs prep the food in a central commissary kitchen, while the company’s delivery team delivers the food. Like grab-and-go items, meals are priced according to the area in which they are headed, so that affluent customers will pay a little more than those facing food insecurity.

Customers an also get meals from a number of Everytable’s own brick-and-mortar stores around Los Angeles.

That food insecurity affects one in eight Americans, according to data from Feeding America. Unsurprisingly, this lack of access to nutritious food has become an even more urgent issue since the pandemic hit. In response, and in addition to its retail efforts, Everytable has also been delivering meals to those most in need, including homebound elderly people, the homeless, and community college students who would ordinarily rely on their schools’ meal plans. The company said in today’s press release it has donated more than 4 million meals to Los Angeles residents, which has also led to the company’s scaling production from about 30,000 meals per week to 180,000.

Everytable says the new funding will help it expand throughout Southern California via new grab-and-go stores, partnerships with institutional foodservice outlets, and new postal codes eligible for the company’s subscription service.

For the holidays, the company is also currently running its Pay It Forward program, done in partnership with YWCA Greater Los Angeles and Genesis Motors, both of whom will match donations. Individuals can donate a meal for $6.50 or a care package with five meals for $29.00. The cost of delivering the food is included in the donation. 

Updated: Kiwibot Partners with Sodexo to Roll Out Delivery Robots at the University of Denver

UPDATE: Some details of this story changed after we published this story:

  • The service is now launching in October. 
  • The delivery fee will start at $2.50, or it will be free with a monthly subscription.
  • Delivery will be available from a total of three restaurants.

Original post follows:

Kiwibot announced today that it has partnered with foodservice company Sodexo to bring robot food delivery to students, faculty and staff at the University of Denver.

Starting today, a fleet of 15 Kiwibots will be available to deliver food from Monday to Friday between the hours of 8 a.m and 6 p.m., with deliveries costing a flat $2.50 per order. Delivery will start with one campus restaurant before expanding to four more food options by mid-October. Kiwibot is also working with the city of Denver to enable off-campus deliveries at some point in October, as well.

There are a few things worth noting about this deal. First, this is Kiwi’s second bite at the apple when it comes to college delivery. Last year, the company delivered to UC Berkeley and had big plans to expand to a number of different schools across the U.S. Those plans never came to fruition, however and were abandoned. One reason that growth might not have happened last year was that Kiwibot was going through student groups, and not partnering with a school’s administration.

This time around, Kiwibot has partnered with Sodexo, a huge company that provides foodservice to colleges across the U.S. This partnership brings with it more legitimacy for Kiwibot, and also provides an entrée, so to speak, with college administrations and restaurants at potential campuses.

That Kiwibot has partnered with Sodexo is in itself interesting because Sodexo has an existing partnership with Kiwi rival, Starship, for robot deliveries on various colleges like George Mason University. The difference, however, is that Starship’s program requires users to download the Starship app. Kiwibot’s solution is more of a B2B play, and will integrate with a food ordering app from Sodexo. So it could provide Kiwibot with direct access to a greater number of Sodexo-run properties, should the partnership grow.

Kiwibot have been on a bit of a, err, roll lately. In July the company launched a restaurant delivery program in the city of San Jose, CA. Kiwibot is also in the middle of an equity crowdfunding campaign, which aims to raise $1 million.

Soggy Food Sucks Re-Brands as SavrPak, Starts Scaling Up

When Soggy Food Sucks won the Startup Showcase at our 2018 Smart Kitchen Summit, you could kinda tell that its moniker wasn’t long for this world. Like the name of some local indie band, Soggy Food Sucks caught your attention and told you exactly what it does, but didn’t exactly scream big enterprise business.

Well today, the company announced a re-branding. Soggy Food Sucks is now the much more professional sounding SavrPak.

“I named the company myself, when it was just me,” Bill Birgen, Founder of Soggy Food Sucks SavrPak told me by phone this week. But the name became a potential issue when talking with prospective high-profile, family-friendly brands who were hesitant about partnering with anything that “sucks.”

For those unfamiliar with the company, SavrPak makes a patch that sticks to the inside of food containers and absorbs moisture. The result, the company promises is, well, no more soggy food when you order delivery.

Birgen said that the COVID-19 pandemic has been a bit of a double-edge sword for the company. On the one hand, delivery and off-premises eating is more important to restaurant business than ever. But on the other hand, restaurants, whose margins were already thin before the pandemic, are reluctant to add any new expenses like a patch for to-go containers.

“COVID was a curveball,” Birgen said. “Customers were ready to receive product, but it’s probably a good thing they didn’t. They may not have been around to pay us.”

According to Birgen, SavrPak is producing 1 million units per month and is scaling up to produce 15 million units per month by the end of the year. The company has a number of brands testing out its patch including Wahoo’s Fish Tacos and Kitchen United, with the latter offering SavrPak’s as a packaging add-on for brands housed in its ghost kitchens.

In addition to ramping up production, SavrPak is also developing a patch that can be dropped into products like bags of salad to help keep produce fresh. The company is also in the process of receiving compostability certification. This is a good thing, considering the incredible amount of single-use container waste being generated by the rise in take out and delivery.

SavrPak isn’t the only company tackling the issue of soggy food sucking. Packaging company Novolex makes the EcoCraft Fresh & Crispy clamshell containers that help keep food crisp through “micro-flute corrugation” built into its to-go containers.

With the pandemic still very much impacting our eating habits, off-premises isn’t going away anytime soon. That sucks for a lot of reasons, but when it comes to eating delivery at home, maybe SavrPak can make it suck less?

Instacart Enters Convenience Category, Now Delivers from 7-Eleven

Good news for those craving a Slurpee, but don’t want to leave their homes: Instacart announced today that it is now offering same-day delivery from national convenience store chain 7-Eleven.

The service is available from more than 750 7-Eleven stores in Texas, Florida, Maryland, Virginia and Washington D.C., with a national rollout to more than 7,000 stores to follow. Instacart will offer delivery of thousands of convenience store items including grocery, alcohol, over-the-counter meds and presumably a hot dog that’s been on hot rollers.

Customers in the current service area can start shopping from 7-Eleven today by visiting www.instacart.com/711 or using the Instacart mobile app. Just as with its grocery service, an Instacart Shopper will go to the store, pick out the order and deliver it. Deliveries can also be scheduled.

The COVID-19 pandemic has seen a surge of interest in Instacart’s delivery service. The company said that since March it has expanded with more than 130 retailers to add roughly 6,500 new stores to the Instacart platform.

This partnership with 7-Eleven is Instacart’s first foray into the convenience category, and in a way foreshadows the looming battles ahead as third party delivery services expand. DoorDash, another third-party delivery service, has made multiple moves into the convenience category throughout the year, including partnerships with Circle K, WaWa and… 7-Eleven. All of these efforts recently culminated with DoorDash opening up its own ghost convenience store chain in select cities.

If Instacart and DoorDash duking it out to bring you a Big Gulp doesn’t blur the lines enough for you, there’s the fact that DoorDash is now getting into grocery delivery. Uber Eats, another third-party delivery player is also starting to offer grocery delivery.

It’s understandable that we’re headed for a big delivery battle royale across multiple store categories. Restaurants, which were the bread and butter for services like DoorDash and Uber Eats, have been decimated by the pandemic. As a result, those services are on the hunt for new revenue opportunities, and with record amounts of e-commerce, grocery is a big juicy target.

While Instacart if firmly entrenched in the grocery space (Walmart recently added the company as a delivery partner), adding convenience stores can help broaden its defensive moat. Instacart doesn’t want to see DoorDash creep into more categories and have people get used to the idea of ordering more and different types of food delivery from them.

As these delivery services look to stake out more territory in their search for customers and revenue, we can expect to see similar category expansion announcements from all the delivery players in the coming months.

Woowa Bros. Launches Robot Food Delivery in Korea

Woowa Brothers, which owns the popular Baedal Minjok food delivery service in Korea, announced yesterday that it started using robots for delivery on public streets just outside of Seoul.

Woowa’s “Dilly Drive” robots will have a very limited run at first, only making deliveries to Gwanggyo Alley Way, a multipurpose housing complex in Gwanggyo, Suwon city.

The Dilly service can be used by any of the 1,100 residents of the housing complex, or the public at large. To place an order, customers use the Baemin mobile app and the robot will either arrive at the first floor of the Gwanggyo Alley Way, or to tables outfitted with special QR codes in the complex’s plaza.

The Dilly Drive robots sport six wheels, move at a speed between 4 – 5 kilometers per hour (roughly the speed of a person walking) and can carry roughly 6 lunch boxes. The self-driving Dilly Drives can detect and avoid objects, people, and pets, and the robots now come equipped with remote control, presumably so a human can take over should one get stuck or incapacitated.

According to the press release, this is the first public use of food delivery robots in Korea. Woowa had previously tested the Dilly robots at Konkuk University in a pilot program back in November 2019.

While this may be the first public use of delivery robots in Korea, chances are good that it won’t be the last. The global COVID-19 pandemic has sparked the acceleration of contactless methods of delivery. Robots like the Dilly Drive, as well as those from Starship and Kiwibot, remove at least one human from the delivery equation. Robots also bring the added benefits of being able to work long hours without a break and never getting sick.

With the launch of the Dilly Drive, I’m curious to see if Woowa Founder and CEO Kim Bong-Jin will follow up on an idea he had a couple years back. During a press interview back in July 2018, Bong-Jin expressed an interest in having robots not only deliver food but also take away recycling. As more people have ordered delivery during this pandemic quarantine, single-use plastics have become a bigger problem. If a delivery robot could drop off food in a recyclable/re-usable container and then pick it up on its next trip, that could really help put a dent in the waste created by restaurant delivery.

With DashMart, DoorDash is Creating its own Ghost Convenience Stores

DoorDash announced the launch of its new DashMart service today in a move that essentially has the delivery company creating its own ghost convenience store.

From a DoorDash blog post announcing the DashMart (emphasis theirs):

DashMart is a new type of convenience store, offering both household essentials and local restaurant favorites to our customers’ doorsteps. On DashMart, you’ll find thousands of convenience, grocery, and restaurant items, from ice cream and chips, to cough medicine and dog food, to spice rubs and packaged desserts from the local restaurants you love on DoorDash. DashMart stores are owned, operated, and curated by DoorDash.

DashMart is currently available in eight cities: Chicago, Minneapolis, Columbus, Cincinnati, Dallas, Salt Lake City, the greater Phoenix area, and Redwood City, CA. In the coming months, DashMarts will be coming to San Diego, Baltimore, Denver, Sacramento and Concord, CA.

I spoke with a DoorDash rep by phone today, who filled in a few more details. DashMarts are delivery-only, physical fulfillment centers that are stocked with big brand names (think: Snickers bars) as well as items from local restaurants (think: frozen slices of Cheesecake Factory cheesecake, or spices from local BBQ joints).

DoorDash has built out nine fulfillment centers, placed in locations where people don’t have easy access to a convenience store. Customers browsing the DoorDash app can select the DashMart and shop as they normally would.

That DoorDash is getting deeper into the convenience category isn’t a huge surprise. The company launched convenience store delivery in April of this year with WaWa, 7-Eleven, Circle K and more. In July, it expanded that program with a partnership with Walgreens.

Part of the reason for the expansion is pretty straightforward. The COVID pandemic shut down most of the restaurants across the country, accelerating the need for DoorDash to get into new markets. Convenience stores are a good fit for the DoorDash, which is all about fast delivery of smaller and/or last-minute items.

Today’s announcement brings more vertical integration into DoorDash’s convenience ambitions. DoorDash owns and operates these DashMarts, deciding which products gets stocked and controlling the whole endeavor from top to bottom. In addition to keeping all the revenue from sales through DashMart, DoorDash also gets more data around customers and purchases and can better optimize its own inventories.

Of course this isn’t the first ghost operation for DoorDash. In October of last year, the company opened up its first ghost kitchen facility in Redwood City, CA, which went on to house restaurant brands like Chick-Fil-A.

With the pandemic still running its course through the U.S., DoorDash’s delivery services will be in demand for the foreseeable future. So its not hard to imagine the company has plenty of time to build up a robust network of DashMarts in the coming year.

Minnow Raises $2.2M Seed Round for Contact-Free Delivery Pods

Minnow Technologies, which make IoT-enabled, contactless delivery lockers, announced today that it has raised a $2.2 million seed round led by Elevate Capital with participation from Portland See Fund and the venture capital arm of Lincoln Property Company. This brings the total amount of funding raised by Minnow to $3.4 million.

With the pandemic still raging across the country, contactless delivery is basically table stakes for food operators and consumers alike. Minnow’s pods are installed in high-traffic locations and allow food deliveries to be stored in specified cubbies and unlocked by customers using their mobile phones.

Minnow’s go-to market strategy (and company name) has evolved since its inception back in 2017. The company was first called Veebie and the food locker was meant to be mobile. When the company changed its name to Kadabra, it took the wheels off the locker, installing them in locations and added IoT capablities. When it re-branded as Minnow (and moved headquarters from Portland, Maine to Portland, Oregon), and officially launched in March of this year, it installed seven Minnow pods in office buildings in the Portland, Oregon area.

The COVID-19 pandemic, however, meant that office buildings weren’t exactly bustling any longer, so the company started looking at apartment and other multi-family residential buildings as installation locations. In today’s funding announcement, Minnow added that its pods were also available for ghost kitchens and other cafeterias (a la Brightloom) to act as a contactless intermediary between kitchen and delivery people or customers. Minnow even added UV lights to the interior of its cubbies to further help with sterilization.

Minnow is certainly raising money at the right time. With restaurants going back and forth between opening and closing, off-premises eating is the really the main way for them to stay afloat. Delivery cubbies like Minnow’s also have the added benefit of flexibility for the customer. Instead of having to be at the door when the delivery person comes, food can be dropped off in the insulated cubby and picked up when its most convenient (the Minnow FAQ says that the cubbies are designed to hold food for 90 minutes).

With its move into residential buildings, having Lincoln Property Company, which has buildings in 28 states, is a good investor to have. Even after the pandemic recedes (whenever that will be), people will still be getting food delivered, and having a special locker in your lobby will be a nice perk for residents.

Fare Launches ‘Ethical’ Delivery Service in NYC With Zero Commission Fees for Restaurants

Restaurant delivery service Fare, which calls itself “an ethical and fair alternative” to third-party delivery, today announced its official launch in NYC. The company’s number one claim to fame right now is that it charges restaurants zero commission fees on orders because of its more local approach to food delivery.

Fare works with local restaurants around NYC, curating a menu of available options for customers to choose from based on their neighborhood. Given that, customers get a much more limited number of options to pick from each day compared to, say, Grubhub or Uber Eats. The company claims to taste-test every single menu that goes onto its site. It also says, via its FAQs, that if a restaurant’s food quality starts to slip, Fare will remove their menus from its site.

The service differs from third-party delivery apps in that orders need to be placed in advance, usually on the day before, through the Fare website. There is no minimum for orders. Fare then groups orders together by neighborhood, block, or building, and the restaurant drops the order off at each customer’s door within a designated 1-hour timeframe. 

Having the restaurant drop the order off itself is how Fare gets around charging businesses commission fees — which, as we’ve documented ad nauseam, can be as high as 30 percent per transaction with the major third-party delivery services. To make money on orders, the company says it charges customers a small service fee.

Fare’s localized approach to delivery is definitely an attractive option for smaller restaurants that primarily serve customers in their immediate vicinity and may not have the money to ink a deal with Grubhub. For customers, it might not be as convenient as using a major third-party delivery service, since orders have to be placed ahead of time and food choices are limited. The real acid test will probably be the convenience factor, which seems to drive everything in the restaurant industry nowadays. Will consumers be willing to sacrifice some of the “on-demand” aspects of food delivery to get a cheaper meal and ensure restaurants aren’t getting gauged with commission fees? The jury, as they say, is still out.

Fare is currently operating in Manhattan, Brooklyn, and Queens.