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The Spoon

Daily news and analysis about the food tech revolution

food delivery

Takeaway.com and Just Eat’s $7.6B Merger Approved

The U.K,’s Competition Markets and Authority (CMA) has approved Takeaway.com’s £6.2 billion ($7.6 billion USD) takeover of British food delivery service Just Eat. The merged company also announced it had raised €700 million ($756 million) in new outside funding in the form of new shares and convertible bonds.

The deal was originally announced in July of 2019. A bidding war with tech investment firm Prosus followed shortly thereafter, which Takeaway.com won — only to have the CMA open an investigation into the deal to see if it would “result in a substantial lessening of competition” in the U.K. food delivery market. 

Takeaway.com previously operated in the U.K., but exited that market in 2016. The CMA’s investigation concerned whether the Dutch company would have re-entered the U.K. market of its own accord without the Just Eat deal. 

“In this case, we carefully considered whether Takeaway.com could have re-entered the U.K. market in future, giving people more choice,” the CMA’s mergers director Colin Raftery said in a statement. “It was important we investigated this properly, but after gathering additional evidence which indicates this deal will not reduce competition, it is also the right decision to now clear the merger.”

The approval comes just days after the CMA provisionally approved Amazon’s investment in delivery service Deliveroo, which has been under investigation for similar reasons. In the case of this deal, the approval seems more tied to the COVID-19 pandemic than anything else, with the CMA concluding that the virus is having significant enough impact on Deliveroo’s business to endanger the third-party delivery company. 

Coronavirus doesn’t appear to be the driving force behind the Just Eat-Takeaway.com deal, which was never as dangerously on the rocks as Amazon’s anyway. According to CNBC, the new funding will be used to in part pay down debts as well as pursue “strategic opportunities.”

Popapp Data Gives Snapshot of COVID-19’s Impact on Latin American Restaurants

Because we are based in the US, we have plenty of data about how the COVID-19 outbreak is decimating the restaurant business here. And while we have a general sense about how restaurants are faring in other parts of the world (bad), we haven’t seen a lot of numbers.

But thanks to Jorge Corona Gutierrez, we have a small glimpse into the impact of the global pandemic across Latin America countries like Argentina, Chile, Perú and Mexico.

Gutierrez is the Founder and CEO of Popapp, a restaurant software startup that helps manage delivery for small to medium-sized restaurants. He pulled together data from Popapp’s 300 customers to provide a snapshot of how COVID-19 has impacted the restaurant business across Latin America. From that report, Gutierrez says:

  • As of March 1 of this year, Popapp had 336 active point of sale (POS) per day. By April 6, that number had dropped to 59 active POS per day, representing an 82 percent churn.
  • During the first week of March, the average cumulative sales per day of Popapp’s customers was roughly $117,000 (USD) per day. During the first week of April, that number dropped to $25,000, an 84 percent loss in revenue.

Obviously this is a small snapshot of the overall state of the restaurant industry in Latin America, but it does give us some numbers to get a sense of the problems there.

Even amidst this gloom, however, Gutierrez points out some optimism. That 59 active POS number above is actually an improvement over the nadir for the company over the past month, when there were just 43 active POS systems per day. And Gutierrez says that his company has been steadily adding more customers suggesting that more restaurants are pivoting to delivery.

The data from Gutierrez’s report does illustrate that this is a truly global pandemic that is hitting the restaurant industry particularly hard around the world.

COVID-19 Summit: How a Global Pandemic Will Reinvent the Restaurant Menu

For the last few weeks — really since states began mandating dining room closures — one of the most commonly uttered pieces of advice for restaurants has been to rethink their menus. Between a global pandemic, a looming recession, and unprecedented disruption to daily life, it seems the one piece of restaurant operations that’s pretty much never changed suddenly needs a major overhaul.

That point was reiterated yesterday at The Spoon’s COVID-19 virtual summit. In particular, two big points stuck out: the menu needs to teach consumers how to eat healthier and it needs to be redesigned for the off-premises format.

Robert Egger, the founder of LA Kitchen, talked about the need to rethink the menu in times like these and focus on trimming portions down.

“The tyranny of the plate is something we need to reject,” he said on a panel with Spoon Publisher Mike Wolf and chef Mark Brand. He was talking specifically about the four-compartment meal that represents the standard American diet, where “the big piece of meat” is accompanied by vegetables and starches.

Egger’s suggestion is that restaurants and institutional foodservice businesses distance themselves from that format and look to menu models that create more integrated meals that are plant-forward and rely on alternative proteins for sustenance. Think of the grain bowls or falafel bowls served up by chains like Sweetgreen or Tender Greens, two companies Egger referenced in his talk. These, he says, can give customers a “robust, flavorful replacement” for the standard American diet that relies so heavily on animal proteins and gigantic portions.

Brand agreed. “If you continue to feed the beast, which is literal obesity and diabetes, you’re already part of the problem,” he said. “Why are you opening a restaurant to kill people?”

Instead of reacting to what they think customers want to see on the menu, restaurants should instead try to lead customers to choices that will be better for them. That could mean offering an alternative protein to chicken or not serving avocado toast in a region that doesn’t grow avocados. It definitely includes serving smaller portions and getting away from what Eggar called “the groaning plate.”

In many cases, it will also mean preparing food that can travel easily. With restaurant dining rooms closed for now, businesses are having to quickly pivot to off-premises models that serve delivery and takeout meals. One mantra I’ve heard often in my conversations over the last few weeks is “pare down your menu” to make it friendlier to the off-premises format.

Moving your menu to an off-premises setting is more than just a matter of uploading your existing one to Postmates et al. Restaurants have to factor in what food travels well and how they can offer variety without inducing decision paralysis, where a customer sees so many options they freeze up.  

At the event yesterday, Chowly’s Sterling Douglass said there was no magic number of menu items when it comes to offering choice without that decision paralysis. Rather, it’s a matter of simplifying the choices themselves. For example, an item called “Chicago-style Hot Dog” will be selected more than a hot dog that requires customers to take an extra step by selecting “Chicago-style” from a list of styles. 

And, of course, the food has to travel well from the restaurant to a customer’s house. That’s where Eggar’s grain bowls could prove themselves really valuable. A plate of chicken parmesan sliding around a box and getting more lukewarm with every minute doesn’t exactly make for an appetizing to-go order. A bowl of greens, quinoa, and other items that were meant to be mixed together makes a whole lot more sense when it comes to food that travels. My bet is that it’s cheaper to produce, too.

As restaurants continue building and modifying their models to fit in this strange new world or social distancing, paring the menu down to a few simpler, healthier options could prove the most beneficial thing for everyone’s health, not to mention their wallets.

Uber Eats Launches an In-App Donation Button for Restaurants

Uber Eats has added an in-app donation feature to its checkout process in some locations that lets customers contribute extra cash to a restaurant. The company said in a blog post that 100 percent of donations will go directly to the restaurants. 

Once a user proceeds to checkout within the Uber Eats app, they will see an option to give $2 to the restaurant. Uber Eats will match donations dollar-for-dollar up to $3 million to the Restaurant Employee Relief Fund. The company is also contributing an additional $2 million to the fund, which goes towards restaurant workers whose jobs have been impacted by mandatory dining room closures. The National Restaurant Association, which runs the fund, predicts the loss of millions of restaurant jobs over the next few months.

Uber Eats’ donation fund comes on the heels of some donation controversy Yelp found itself at the center of recently, when it launched a fundraiser with GoFundMe for local restaurants without actually getting those restaurants’ permission. There was no opt-in option, and according to some restaurants, the opt-out process was overly complicated. After quite a bit of bad press, Yelp paused the program. 

Uber Eats’ donation program doesn’t have an opt-in option, either. The company says restaurants can opt out easily if they choose, and the decision to bolt donations onto the checkout process may be less intrusive for restaurants than setting up a full-on fundraiser without their consent.

Uber Eats previously announced it was waiving delivery fees for customers of independent restaurants in the wake of the ongoing pandemic that’s disrupted daily lives and business. However, the service is still charging restaurants high commission fees on every order. Small donations from customers aren’t going to offset the financial burden of those commission fees.

Uber is trialing the donation program in NYC and plans to expand the program to other U.S. cities this week.

Indian Delivery Service Zomato Launches Relief Fund for Restaurants

Zomato, one of the largest third-party food delivery services in India, announced this week it has launched a fund to support restaurants whose business is impacted by COVID-19. All sales of Zomato Gold memberships in April will go into the Zomato Gold Support Fund, according to a blog post from the company. Proceeds from the fund go towards “restaurant housekeepers, cooks and servers in these uncertain times.”

Zomato Gold is the service’s premium membership pass that gives customers “buy one get one free” deals on purchases. For the month of April, customers can purchase a one-year membership to Zomato Gold for ₹1200 (~$16 USD) or extend an existing membership another year for the same price. Those that do, get an additional year of Zomato Gold for free.

The company notes that anyone receiving these funds will not be required to pay them back (something that’s not been the case with every third-party delivery service’s COVID-19-related offers).

India is currently in the midst of a three-week-long lockdown — the world’s largest — with all factories, markets, shops, houses of worship, and other public spaces closed for the country’s 1.3 billion people. Like other countries around the world, restaurants can continue operating for delivery, but that puts many in-house employees out of work for the time being. 

“Restaurant workers face a twofold setback, many have modest backgrounds, and coming from small towns, are stranded away from their homes,” Gaurav Gupta, the cofounder and COO of Zomato, wrote in the company’s blog post. “And a cash-strapped industry is struggling to provide sustenance for them and their families as business comes to an abrupt halt.”

Gupta recently noted that the Zomato Gold fund is currently happening in India and the UAE. 

Starship Robots Deliver Food Over Social Distances at Bowling Green

There is probably some grim metaphor in the fact that while people across the US shelter in place to avoid human contact, robots continue to roll out, making deliveries, unaware of the pandemic that surrounds them.

Ever since this outbreak started, we at The Spoon have wondered why autonomous delivery robots aren’t being used more often, especially in cities. As grocery and restaurant deliveries surge, robots could remove at least one human from the delivery equation (and they are a lot easier to scrub down after each use).

Turns out that Bowling Green State University is still using Starship robots for food delivery on campus, according to the Sentinel-Tribune. At least Jon Zachrich, Bowling Green State University Dining Director of Marketing and Communications, thinks that’s a good thing in these end times.

“I personally think it’s a good opportunity for social distancing, just because your only interaction is going to be with the actual robot, once it comes from our facility,” Zachrich told the Sentinel-Tribune.

He also spilled some factoids that I, as someone who follows the robot space, found interesting. The surface of the robot is non-porous, so it’s easy to clean. Zachrich also outlined some of the sanitizing protocols for the robot, saying that each robot is wiped down with disinfectant and anti-bacterial cleaners after each use.

On a more general interest note, Zachrich also gave us a glimpse as to how many orders the robots were running at Bowling Green before the pandemic. The robots debuted on campus on Feb. 20 and “Orders were quickly maxed out at over 750 per day,” the Sentinel-Tribune writes. Each of those came with $1.99 Starship delivery fee if you want to do the math on revenue generation.

That number has obviously dropped off as Bowling Green, like so many other colleges, has shifted to distance learning. Most restaurants on campus have closed, but the restaurants are still delivering to essential staff on campus and students who remained because they don’t have any other place to go.

This outbreak doesn’t seem to be subsiding anytime soon, especially in this country. With social distancing becoming the new norm, at least for the foreseeable future, perhaps more places will be like Bowling Green and get their own robots rolling across the social distance gap.

David Chang on Restaurant Delivery “It’s Going to Decimate the Business”

Famed restauranteur and Netflix’s Ugly Delicious host David Chang was on the Bill Simmons podcast this week. And while Chang was there to promote his new book, he and Simmons actually spent a lot of time discussing food delivery and its impact on the restaurant industry.

You should listen to the entire episode, but here are a few highlights.

Chang said that the biggest story in restaurants right now is the rise of delivery. “That’s going to be the story of the next ten years,” Chang said before adding, grimly, “It’s going to decimate the business.”

Basically, as Chang pointed out, because of delivery, restaurants now aren’t just competing with other neighborhood restaurants, they are competing with restaurant across an entire city. So restaurants now find themselves in even tougher environments when it comes to standing out from competitors.

Additionally, Chang suggests the math doesn’t really add up. If a restaurant is only eking out a 5–10 percent profit overall, what happens when they pay 30 percent commissions on deliveries through a third party like DoorDash, and customers are ordering 3 – 4 meals per week through delivery? Chang worried that this could turn restaurants into a form of indentured servitude, saying “The model has to improve for actual restaurants,” and “The 30 percent fee of delivery services is a model that’s not going to work long-term.”

Having said that, Chang also admitted that if DoorDash asked to be the exclusive delivery partner for his restaurant, he’d have to say yes “because they are driving so much traffic.”

Our own Jenn Marston has written quite a bit about this Faustian bargain that restaurants strike with third-party delivery services. And how that model is starting to change as restaurants begin to bring delivery in-house or create some kind of hybrid of in-house and third-party delivery.

Chang doesn’t think that eating at a restaurant will go away entirely, “They’re just going to be a specific kind of restaurant,” he said “They’re going to be the shit you can’t deliver, ultimately.”

In a fun aside, Chang actually ranked food that’s best for delivery. Pizza was the best followed by Chinese food and fried chicken. Host Bill Simmons lamented that “they have not been able to figure out fries.” Perhaps he should check out Smart Kitchen Summit Startup Showcase winner Soggy Food Sucks.

Chang’s opinions, of course, come during a global pandemic, where people are being encouraged to practice active social distancing and avoid large gatherings. In Jersey City, the mayor has asked bars and restaurants in that town to take attendance in an effort to minimize the impact of the coronavirus. And in Seattle, restauranteur Tom Douglas said that he is temporarily closing 12 restaurants for up to three months after seeing a 90 percent drop in business since the outbreak.

You should listen to the whole Simmons podcast. Chang is a great interview who doesn’t pull any punches. And while “decimate” is kind of a pejorative term, Chang is right, delivery will cause fundamental changes to the restaurant biz. How it does so, remains to be seen.

Uber, DoorDash and Others ‘In Talks’ to Compensate Drivers Affected By Coronavirus

Under pressure to offer more protection to workers, major gig economy companies are considering setting up a fund to compensate drivers affected by the coronavirus, according to The Wall Street Journal. Uber, Lyft, Instacart, DoorDash, and Postmates are “in talks” to see how they can come together to set up a fund to pay workers infected by or quarantined with the virus.

Food delivery drivers are in high demand right now as more Americans are working from home or simply staying away from restaurants in the wake of the COVID-19 outbreak. Postmates and Instacart have responded by implementing contactless delivery options where drivers simply leave food on the doorstep instead of handing it off directly to the customer.  

Those measures mitigate some risk. However, they don’t account for the fact that gig economy workers are classified as contractors in most states, which means they don’t get paid for time off, including sick leave. In some cases, taking time off for illness could drastically affect workers’ livelihoods. One worker told the WSJ that “staying home won’t pay the bills.”

That puts delivery drivers in a tough position: stay home and miss earning essential income, or work even when you’re feeling sick and potentially risk further spreading coronavirus. While this conundrum is true of many, many types of workers right now, gig workers are in especially high demand as more people order food in, rather than go out to restaurants. 

The aforementioned companies are expected to make a decision about this potential fund in a few days.  Uber has already said it will compensate up to 14 days for both rideshare drivers and delivery drivers diagnosed or quarantined with coronavirus.

Compensating affected drivers is just one of many issues around worker treatment for which delivery companies have come under fire recently. Uber, Lyft, and Postmates are on the list of gig economy companies currently fighting California’s Assembly Bill 5 — also known as the “gig worker bill” — which reclassifies those workers as employees and entitles them to certain benefits — including paid sick leave. DoorDash and Instacart famously made a lot of enemies in 2019 over their worker tipping policies. Meanwhile, advocacy groups like Gig Workers Rising and Gig Workers Collective are putting pressure on tech companies to enact better labor policies.

One possible result of the current outbreak is that it could prioritize the issue of gig workers’ rights and spur both regulators and tech companies into action faster. Coronavirus isn’t the last public health crisis we’ll see in our lifetimes. As gig economy jobs become the norm for a growing number of the population, ensuring better protection for workers’ health needs to be built right into the job description. 

Week in Restaurants: McDelivery and Dunkin’ Expand, Starbucks Suspends Reusable Cups

We’d all be forgiven for feeling a little nervous going into the weekend, given the ongoing concerns around rising coronavirus cases. As you’ll read below, restaurants, too, are now responding with new measures meant to keep customers safe(er). And while there’s always a little news from the delivery sector each week, I suspect we’ll see a lot more bytes in the coming weeks about restaurant chains adding more services as more customers opt to stay in.

McDonald’s Adds Postmates for Delivery

Mickey D’s further widened its pool of delivery partners this week when it announced a partnership with Postmates for more than 300 restaurants in Dallas and Los Angeles. The move isn’t surprising. McDonald’s has been steadily adding partners ever since it ended its longstanding exclusive contract with Uber Eats in 2019. Since then, it’s added Grubhub, DoorDash, Just Eat (in the UK), and others. The Postmates deal means the chain now has partnerships with all of the major food delivery services in the U.S., which is a strategy some experts recommend for restaurant chains in this off-premises-obsessed era.

Dunkin’ Expands Delivery

Dunkin’ announced this week it is expanding its delivery reach with Grubhub to include more of the Metro New York area. The original Grubhub-Dunkin’ deal launched in June of 2019, and this expansion will make more than 800 Dunkin’ locations delivery friendly across NYC, Westchester, New Jersey, Connecticut, and Long Island. The delivery option also applies to customer of Grubhub-owned delivery service Seamless.  

Starbucks Suspends Reusable Cup Policy 

Amid coronavirus concerns in the U.S., Starbucks has put a hold on its practice of filling reusable cups customers bring in. “We are pausing the use of personal cups and ‘for here’ ware in our stores,” Starbucks executive vice president Rossann Williams said in a letter to stakeholders this week. However, Starbucks will still honor your efforts should you choose to bring your own cup by continuing the 10-cent discount Starbucks customers using refillable cups normally receive.  

Panda Express May Be Testing Pickup Cubbies

Meanwhile, in the world of pickup orders, another restaurant chain has adopted the cubby system. In its own roundup from earlier this week, Nation’s Restaurant News pointed out that Panda Express has “a locker system for kiosk and online orders” at one of its Irvine, California locations. Apparently the company didn’t return NRN’s request for a comment, so it’s not clear if this is a one-off, test, or some other initiative. But pickup lockers and cubbies are becoming all the rage for takeout these days, so it wouldn’t be surprising if, as they can keep food hotter (or colder) for longer and ensure customers actually take the right order when they come to collect their food.

Zomato Buys Uber Eats’ India Business for $206M

Uber Eats has sold its India business to food delivery giant Zomato for $206 million, according to an AsiaTechDaily article. The deal was first announced in January, though at the time financial terms were not disclosed. This official price tag on the deal comes from Uber’s latest filing with the US Securities and Exchange Commission.

The deal gives Uber a 9.99 percent stake in Zomato. It also dictates that Uber will shutter its Eats business operations in the Indian market and that its Eats restaurant customers there will become part of the Zomato ecosystem.

From AsiaTechDaily:

Uber said in the filing that the estimated fair value of the consideration received is $206 million, which includes the investment valued at $171 million and the $35 million of reimbursement of goods and services tax receivable from Zomato. 

Uber’s exit from the Indian market leaves just two companies competing for food delivery dominance: Zomato and its key rival, Naspers-backed Swiggy, which is India’s number one food delivery service according to estimates. Both companies process roughly half a million more orders daily than Eats had been doing in India. 

The Indian market won’t stay a duopoly for long, though. Just days ago, Amazon announced it plans to enter the Indian food delivery market with a service that would be offered as part of either its Prime Now or Amazon Fresh platform. Said service could launch as soon as this month. While the company’s entry into the market wouldn’t be a complete breeze, given both Swiggy and Zomato’s popularity, if anyone has the deep pockets and operational prowess to crush that duopoly, it’s Amazon.

Amazon aside, the Zomato-Uber Eats deal is also another step in the food delivery industry’s move towards further consolidation as these cash-burning services back out of loss-making markets. India isn’t the first market where Uber Eats has shuttered its services. In 2019, the company got out of South Korea, where Woowa Bros.’ Baedal Minjok has a 75 percent marketshare. Also in 2019, Postmates shuttered its Mexico City office.

Elsewhere, UK-based Just Eat merged with Takeaway.com to form one of the largest food delivery services in the world, and Woowa Bros. itself was bought by Delivery Hero at the end of December. These, along with the Uber Eats-Zomato deal are certainly not the last we’ll hear of mergers, acquisitions, and closings, as consolidation in the food delivery space continues. 

I Tried Hungryroot, the Healthy, 10-Minute Meal Kit. And it Actually Delivered

Whenever I get a pitch in my inbox asking me to sample a new product, my first reaction is usually skepticism. Could this cricket bar really be that good? Is it actually feasible that this pill will help me avoid a hangover? Will this meal kit really make me eat healthier in less time than other meal kits, or just cooking for myself?

That last pitch came from Hungryroot, the grocery-slash-meal-kit hybrid delivery service aimed at millennials trying to eat better. And the answer, much to my surprise, was yes. Hungryroot actually did make good on its promise: to provide simple, healthy recipes that can be prepared in under ten minutes.

How it works

On its website Hungryroot refers to itself not as a meal kit or a grocery delivery service, but a sort of hybrid of the two. The ingredients included are a mixture of known brands, like Beyond Meat sausages or Banza chickpea pasta, as well as Hungryroot-made offerings, including a range of sauces and pre-cooked grains. To get started you go onto HungryRoot’s site and create an account. Then you input any dietary restrictions (vegan, gluten-free, nut-free, etc.). You then choose your subscription plan, which is anywhere from 3-6 two-serving meals per week, plus snacks. I selected the smallest option, 3-6 meals, and chose a vegetarian meal plan.

A few days later a box arrived with 11 ingredients meant to create three plant-based meals: a Pasta (Banza chickpea pasta, HungryRoot Cashew Cheddar, baby broccoli), a Market Plate (shaved brussels, pre-cooked grain mix, and Beyond Meat sausage), and a Warm Bowl (HungryRoot lemongrass tofu, snap peas, and Lotus Foods brown rice ramen). There was also a tub each of Chickpea Chocolate Chip Cookie Dough and Black Bean Brownie Batter, which were gluten-free, vegan, and surprisingly delicious. I know, I’m as shocked as you are.

Test
My HungryRoot recipes [Photo: Catherine Lamb]

The Good

One of Hungryroot’s main selling points is the speed and ease with which you can prepare the meals. And, at least from my experience, they really deliver. The recipes I tried consisted of only three ingredients each, all of which were pre-prepped (the brussels sprouts were shredded, tofu nuggets pre-cooked, etc.). All I had to do was some light vegetable chopping, boil some water, sauté, and mix. Even if you have very, very few kitchen skills — and the bare minimum of appliances (read: pressure cookers) — you’d be able to nail these recipes. You don’t even need a microwave.

Perhaps even more surprisingly, the meals were meant to be ready in 10 minutes and… they actually were! Some even took less time than that. In the past when I’ve tried meal kits, the dishes often end up taking much more time and effort than their glossy recipe cards promise, so it was nice to be eating something warm and filling and full of vegetables mere minutes after I pulled the ingredients out of the fridge. All of the meals also had enough leftover for me to take them into lunch the next day.

A HungryRoot Pasta meal, with cashew cheddar sauce. [Photo: Catherine Lamb]

The Bad

There’s always a catch, and for Hungryroot that catch is its cost. Smaller deliveries, which include groceries to make 3-4 two-serving meals plus snacks, cost $69 per week. Medium deliveries (4-5 two-serving meals plus snacks) cost $99 per week, and large deliveries (5-6 two-serving meals plus snacks) are $129 per week. Shipping is free for all orders and you can pause your subscription at any time.

[Update: A representative from Hungryroot emailed me to note that the company has just rolled out a new food profile survey that allows them to design custom pricing plans based on family size, personal health goals, etc. Most plans range from $60 to $100 per week. Orders over $70 will receive free shipping.]

Hungryroot updates its offerings every Thursday, so there are always fresh options to choose from on their site, and deliveries happen weekly.

Cost-wise, Hungryroot’s service shakes out to $8-$12 per meal, depending on which service you choose. The pricing is in line with other meal kits on the market right now, like Blue Apron and Purple Carrot. HungryRoot meals also have the added benefit of taking less time than other meal kit competitors and requiring less elbow grease and fewer dishes. However, $70 will buy me groceries for 2-3 weeks’ worth of meals, so it felt indulgent to spend it on a single week’s worth of ingredients, even if they do save me a few minutes in the kitchen.

Hungryroot’s Market Bowl prepped and ready to eat. [Photo: Catherine Lamb]

When talking about food delivery of any kind, it’s required that we wag our fingers at the amount of packaging they use. Hungryroot did indeed come in a large box lined in foil insulation with ice packs, but the box and foil were home recyclable, as were the drained ice packs. At least they claimed. Regardless, I didn’t have to suffer the guilt that comes with shoving a bunch of bulky packaging into my garbage can, knowing it would end up in a landfill somewhere.

Is Hungryroot Worth It?

So do I recommend Hungryroot? Surprising no one more than myself, I actually do. For consumers that want to prioritize healthy eating and don’t mind paying for it, but are tired of prepackaged $15 takeaway salads, Hungryroot makes a lot of sense. In that way it’s similar to Daily Harvest, the frozen, pre-prepped smoothie and microwaveable meal service. Hungryroot requires more work than Daily Harvest, but it also has a bigger and tastier payout.

In the end, I think that Hungryroot is one of the rare direct-to-consumer meal companies to actually deliver on its promise of healthy, easy, plant-based meals. The question is whether there are enough of those consumers out there to save Hungryroot from the struggles that are affecting other meal kit and prepared food delivery companies.

HungryPanda Raises $20M for Its Food Delivery Service Geared Towards Chinese Communities

Food delivery service HungryPanda announced today it has raised $20 million in funding. The round was led by 83North and Felix Capital and makes up HungryPanda’s total funding to date.

HungryPanda sets itself somewhat apart from other food delivery services in that it caters specifically to overseas Chinese communities — the millions of ethnic Chinese people living outside China and its territories. The platform is designed for Chinese-language speakers, sells predominantly Chinese restaurant food and groceries, and accepts digital payments from services like WeChat Pay and Alipay. 

The platform, which users can access via the HungryPanda website or app, aims to help Chinese users overcome cultural and language barriers when ordering food. Business owners, particularly Asian restaurants, can also take advantage of the service to reach and provide delivery to a more relevant base of customers.

The service was started in 2017 in the UK, and also operates in cities across Europe, North America, and Australia and New Zealand. According to the press release, HungryPanda is “operating profitably in the UK and New York” and plans to launch in 18 more U.S. cities in 2020.

“The US is strategically important to us and it will be our primary focus in 2020,” said Eric Liu, CEO of HungryPanda. “We bring global experience and expertise in this market, which has already made us the leader in a number of cities in the US, including New York where our order volume is almost four times more than the closest competitor.”

HungryPanda will use the new funds to fuel that expansion, as well as grow its team and technology, the company said in the press release. 

The service joins other food delivery companies already part of 83North’s portfolio, including Just Eat and Wolt. Felix Capital, too, counts other food platforms among its investments, including Deliveroo and Frichti.