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Zume

November 2, 2018

With Zume Deal, Softbank Has Pieces For Full-Stack Food Delivery

Softbank is investing $375 million into food delivery and logistics company, Zume, according to a new report in The Wall Street Journal. Softbank is also expected to invest another round of $375 million into Zume at a later date.

We had heard rumblings about this deal earlier this year, and The Journal got the news through an SEC filing. Zume provided the following statement to The Journal: “We’ve recently closed a round of funding to support our growth and hiring.”

Based in the Bay Area, Zume uses mountains of data to predict how many and what types of pizzas will sell in different neighborhoods. The startup also uses robots to help make the pizza, and a special van outfitted with ovens to finish cooking pizzas on their way to people’s houses. Earlier this year, the company announced that it would license its predictive technology out to help other types of restaurants to improve delivery of different types of cuisines.

As we’ve noted before, this investment makes a lot of sense for both companies. For Zume, it brings the necessary capital to expand both geographically outside of the Bay Area, and helps it broaden into other food categories.

For Softbank, putting money into Zume aligns nicely with some of its other investments. Softbank has invested in food delivery services DoorDash and Uber Eats. And last month, Softbank joined forces with Toyota to form a joint venture called MONET, which will use the car company’s e-Palette technology to create customizable self-driving vehicles that could be anything from a dentist office to a mobile pizza oven.

The result of all those pieces is a full stack solution for restaurant delivery, with Zume’s analytics predicting demand, Uber Eats or DoorDash providing delivery, and MONET vehicles providing the transportation. That type of vision is a ways off, but you can smell the piping hot corporate synergies.

The first $375M investment from Softbank brings the total amount raised by Zume to $423 million. TechCrunch reports that this will give Zume a pre-money valuation of $1.5 billion.

October 4, 2018

SoftBank and Toyota Team up for Autonomous Meal Delivery Vehicles

SoftBank and Toyota today announced that they will be forming a joint venture to create autonomous vehicles that can provide a variety of smart mobility services, including self-driving vehicles which deliver robot-made meals.

The new venture will be called MONET (a portmanteau of the words “mobility network”) and will combine Toyota’s infrastructure for connected vehicles with data collected from SoftBank’s Internet of Things platform.

The result, according to the press release, will be:

“By the second half of the 2020s, MONET plans to roll out Autono-MaaS (autonomous mobility as a service) businesses using e-Palette, Toyota’s dedicated battery electric vehicle for mobility services that can be used for various purposes, including mobility, logistics, and sales. Possibilities include demand-focused just-in-time mobility services, such as meal deliveries vehicle where food is prepared while on the move, hospital shuttles where onboard medical examinations can be performed, mobile offices, and many more. MONET also intends to roll out these businesses in Japan with an eye to future expansion on the global market.”

Toyota announced its e-Palette autonomous vehicle platform at CES earlier this year. The idea behind e-Palette is to create a customizeable, self-driving vehicle that can be anything from a mobile pizza oven to shoe store on-the-go.

As The Wall Street Journal writes, MONET could provide mobile meals and medical services to Japan’s aging population, though it would by no means be limited to strictly that. In fact, SoftBank may already have the building blocks in place for much of what MONET wants to do.

This past summer, SoftBank was rumored to be investing $750 million in Zume, the Bay Area company that uses massive amounts of data to accurately predict pizza deliveries. Zume also happens to have a fleet of oven-equipped vans which ensure piping hot pizza on delivery. (Something that could come in handy for e-Palettes as well.)

SoftBank also led the $535 million Series D funding round in DoorDash, which uses a combination of humans and robots for food delivery (and has plans for last mile delivery of, well, anything).

August 8, 2018

Report: SoftBank Cooking Up Potential $750M Investment in Zume

Bloomberg reported yesterday that Softbank Group is in discussions to invest from $500 million to $750 million into Zume, the Bay Area company that uses a combination of data, robots and specially outfitted vans to deliver hot pizza.

When news outlets write about Zume, they often focus on the robots that help make the pizza. While those are cool, the company is really about data and last-mile logistics. As we’ve written before:

Zume takes into consideration hundreds of data points, such as day of the week, weather, school calendars and more to develop predictions around how much pizza and what types of pizza will be ordered in a given location. From there a food delivery vehicle cooks up the pizza on the move and delivers it with precise timing.

This could benefit Softbank for a couple of reasons. First, Zume recently announced that it was expanding beyond pizza and bringing its delivery expertise to other types of cuisine. Basically, it is setting up a consultancy to provide Zume’s data prowess to help any restaurant figure out how to deliver their food more efficiently.

As Alex Garden, Co-Founder and CEO of Zume told us at the time of that announcement, “The truth is that we’ve developed a tech stack that will allow any restaurant to power the next generation of their business.”

As restaurant delivery grows, a platform like Zume’s could theoretically ensure that food ordered from any type of restaurant would arrive piping hot and fresh. (No one wants soggy, tepid fries.) Not for nothing, it’s also a way for Zume to scale nationally without a capital heavy investment.

Softbank’s move also plays nice with its other investments. Just yesterday, The Wall Street Journal reported that Softbank was in talks to invest in Alibaba’s Ele.me food delivery service in China. In March of this year, Softbank led DoorDash’s $535 million Series D round, and the company also owns a 15 percent stake in Uber, whose Uber Eats food delivery is growing like crazy.

From Zume’s perspective, the Softbank investment would obviously strap a booster rocket on its growth. Zume has been very methodical in its growth so far, expanding its pizza delivery only in the Bay Area. That type of cash would fund geographic expansion as well as give it the runway to broaden into new cuisines.

We’ve reached out to Zume for confirmation and will update this post when we hear back. UPDATE: Zume replied to us with a “no comment at this time.”

June 28, 2018

Video: See EKIM’s Three-Armed Pizza Robot in Action

If the Louvre and the Eiffel Tower just aren’t enough to entice you to visit France, perhaps a three-armed pizza making robot will finally get you there.

OK. So perhaps a plane ticket to see a pizza robot is a little too steep for you (and me). Good thing you can check out this video from Global News showing off EKIM‘s pizzaiolo-bot, dubbed Pazzi. This robotic wonder will press the dough, spread the sauce, bake and cut to make a pizza pie in 4 minutes and 30 seconds, and can make 120 pizzas in an hour.

Neither the article nor the video mentions anything about toppings, which is something California-based robot pizza company, Zume says is a job better left to humans. Perhaps that’s a kink EKIM will be working out with the €2.2 million it raised to build out its first autonomous pizza restaurant this year.

June 21, 2018

Zume Unveils Its New Pizza Robot, Vincenzo

Zume, the Bay Area startup that uses data, robotics and mobile ovens to optimize pizza delivery, today announced that it has added Vincenzo, a new robot that will take over the dangerous task of taking pizzas crusts out of hot ovens, to the company’s roster.

Before getting into the specifics of Vincenzo (named after the Italian gentleman who would fly from Italy to maintain Zume’s pizza ovens), it’s important to understand how Zume works.

Zume, which only operates in certain locations in the Bay Area, uses data analytics and AI to precisely forecast how many pizzas (and what types) will be needed for deliveries that evening. To prepare the pizzas for delivery, the crusts are par-baked before toppings are added at the production facility.

Par-baking the crust used to require a human sticking their arms in and out of 800 degree ovens hundreds of times a day to remove pizzas and place them on the appropriate rack. This type of repetitive motion could lead to burns that injure us fleshy humans. Vincenzo’s robot arm, on the other hand (no pun intended) feels no pain, and can remove a crust without tearing or breaking it every 8 seconds.

“We’ve had this hardcore point of view on automation of labor,” Alex Garden, CEO of Zume told me. “There is social responsibility around this. Automation exists to improve the quality of human lives.”

In addition to being impervious to pain, Vincenzo is also precise. Once pizzas are topped by humans, Vincenzo pulls them off another conveyor belt and, with guidance from Zume’s AI, places them on a corresponding specified rack that goes on the van where they are fully cooked en route to delivery.

Vincenzo joins the growing Zume robot family which also includes Bruno, who loads pizzas into the oven, and sauce bots Pepe and Giorgio. But Garden is quick to point out that he does not see robots as replacements for humans. “We are co-botic, not robotic,” he said. Garden also said that robots taking the more dangerous, repetitive jobs frees up people to do higher-level tasks, like caring for the pizza’s mother dough.

Another job that humans are (presumably) better at is that of company president, and Zume just added a new one. Zume also announced today that Rhonda Lesinski-Woolf is now President of Zume Pizza. She joins the company after having served as Sr. Vice President of Schools for Revolution Foods. Prior to that, she was Chief Marketing Officer and Sr. Vice President of Product Management at Del Monte.

In addition to managing robots and humans, Lesinski will also need to fend off the company’s automated competition. Making pizza seems like an increasingly popular vocation for robots: Little Caesar’s has a patent for a pizza robot, and over in Europe, EKIM just raised 2.2 million euros to build its own robot-pizza restaurant.

Zume is also expanding beyond its pizza origins. In April the company announced that it would open up its data and logistics platform to other restaurants, and partnered with Welbilt to create vans that could cook other types of cuisine on the go.

If you like pizza robots, you should definitely check out The Spoon Automat, our weekly podcast about food robots and AI.

May 31, 2018

The Food Tech 25: Twenty Five Companies Changing the Way We Eat

Here at The Spoon, we spend most days writing and thinking about those who are transforming what we eat. No matter whether a startup, big company, inventor, or a cook working on new approaches in the kitchen, we love learning the stories of people changing the future of food. So much so, in fact, that we wanted to share those companies that most excite us with our readers.

And so here it is, The Spoon’s Food Tech 25: Twenty Five Companies Changing the Way We Eat

What exactly is the Food Tech 25? In short, it’s our list of the twenty five companies we think are doing the most interesting things changing the way we create, buy, store, cook and think about food.

As with any list, there are bound to be a few questions about how we got here and why we chose the companies we did. Here are some answers:

How did we create this list?

The editors of the Spoon — myself, Chris Albrecht, Catherine Lamb and Jenn Marston — got together in a room, poured some kombucha (ed note: except for Chris), and listed all the companies we thought were doing interesting and important work in changing food and cooking. From there, we had numerous calls, face-to-face meetings and more glasses of kombucha until we narrowed the list down to those you see here.

Is this an annual list?

No, this is a list of the companies we think are the most interesting people and companies right now, in mid-2018. Things could definitely look different six months from now.

Is this list in a particular order or are the companies ranked?

No, the list is in no particular order and we did not rank the 25 companies.

Why isn’t company X on the list?

If this was your list, company X or Y would most likely be on the list (and that’s ok with us). But this is the Spoon’s list and we’re sticking to it (for now – see above).

And of course, making this list wasn’t easy. There are lots of companies doing interesting things in this space. If we had enough room to create runners-up or honorable mentions, we would. But we don’t (and you don’t have enough time to read a list like that).

So, without further ado, here is the Spoon’s Food Tech 25. If you’re the type that likes your lists all on one page, click here.


EMBER
Ember bills itself as “the world’s first temperature control mug,” which basically means you can dictate a specific temperature for your brew via the corresponding app and keep your coffee (or tea or whatever) hot for as long as you need to. The significance here isn’t so much about coffee as it is about where else we could implement the technology and relatively simple concept powering the Ember mug. The company currently has patents out on other kinds of heated or cooled dishware, and Ember has cited baby bottles and medicine as two areas in which it might apply its technology. And yes, it allows you to finally stop microwaving all that leftover morning coffee.

 


INSTANT POT
The Instant Pot is not the highest-tech gadget around, but its affordability, versatility, and speed have made this new take on the pressure cooker a countertop cooking phenomenon. It also has a large and fanatical community, where enthusiastic users share and reshare their favorite Instant Pot recipes across Facebook groups and online forums. By becoming the first new breakout appliance category of the millennial generation, the Instant Pot has achieved that highly desirable (and rare) position of having its brand synonymous with the name of the category; people don’t go looking for pressure cookers, they go looking for an Instant Pot.

 


DELIVEROO
We chose Deliveroo out of the myriad of food delivery services because of their Editions project, which uses customer data to curate restaurant hubs in areas which have unfulfilled demands for certain chain establishments or cuisine types. This model allows food establishments to set up locations with zero start-up costs, and also gives customers in more restaurant-dry areas a wide variety of delivery food options. Essentially, it’s cloud kitchens meets a food hall, with some heavy analysis to help determine which restaurants or cuisines customers want, and where. These “Rooboxes” (hubs of shipping containers in which the food is prepared) show that Deliveroo is a pioneer in the dark kitchen space, and are doing serious work to shake up the food delivery market.

 

AMAZON GO
There are any number of ways that Amazon could have been included in this list, but its Amazon Go stores are what we think will be the real game changer. The cashierless corner store uses a high-tech combination of cameras and computing power, allowing you to walk in grab what you want — and leave. That’s it. At its first location in Seattle, we were struck by how seamless the experience was. As the locations broaden, this type of quick convenience has the potential to change the way we shop for snacks, (some) groceries and even prepared meal kits.

 


INGEST.AI
Restaurants have more pieces of software to deal with than ever. In addition to all the delivery platforms they are now plugged into, there have to deal with payments systems, HR software, and inventory management software. And right now, none of those applications talk to each other. Created by a former IBM Watson engineer, Ingest.ai promises to extract and connect the data from ALL of those disparate software pieces and tie them together to give restaurant owners a holistic, data-powered view of their business. It also helps them have more precise control over their business and automate tasks like food ordering and staff scheduling.

Want to meet the innovators from the FoodTech 25? Make sure to connect with them at North America’s leading foodtech summit, SKS 2019, on Oct 7-8th in Seattle.

NEXT

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April 25, 2018

Zume to Open it’s Mobile Cooking Platform to any Restaurant

When Zume first came on the scene, a lot of people got hooked on its pizza-making robot. But what was always more intriguing to us here at The Spoon was Zume as a data and logistics platform.

Zume takes into consideration hundreds of data points, such as day of the week, weather, school calendars and more to develop predictions around how much pizza and what types of pizza will be ordered in a given location. From there a food delivery vehicle cooks up the pizza on the move and delivers it with precise timing.

Now Zume wants to license out that know-how, as today it announced a plan to open up its platform to any restaurant that wants to replicate Zume’s logistical and technical expertise. To help facilitate the cooking needs of these third-party implementations, Zume also announced that it has partnered with commercial foodservice equipment maker, Welbilt, to incorporate custom built, hyper-efficient appliances into the next generation of Zume’s customizeable food delivery vehicles.

“It’s all well and good to do pizza,” said Alex Garden, Co-Founder and CEO of Zume in a phone interview. “The truth is that we’ve developed a tech stack that will allow any restaurant to power the next generation of their business.”

The company was light on details, saying that today’s announcement is meant to spark discussions with potential customers. At first, Zume will be more like a consultancy, which works with clients individually to establish their goals and plan out an appropriate technical and vehicular solution. From there it will determine the next best steps and and offer a catalog of Welbilt appliances (steamers, griddles, broilers, etc.) that will work best in any food delivery vehicle.

Garden wouldn’t say exactly what kinds of customers Zume was targeting, but indicated that restaurants that are already at scale and feeling pressures from high wage costs, rent costs, or delivery systems digging too deeply into its margins would be a good fit.

It sounds like Zume is doing what Eatsa did towards the end of last year when it decided to pull back from running its own establishments in favor of helping other restaurants automate their businesses. Unlike Eatsa, however, Zume, which has raised $96 million in funding, is expanding its footprint instead of shrinking. As part of today’s announcement, Zume said it’s adding 26 new delivery locations around the Bay Area by the end of this year, and will completely cover the Bay Area by the end of 2019.

Given the methodical rate at which it’s expanding, powering other restaurants is a less capital-intensive way to reach a national scale. In addition to another line of revenue for the company, partnering with other restaurants would also give Zume access to lots of new geographic, customer and cuisine data sets. These new data sets could expand and improve Zume’s predictive algorithms which should, in turn, boost sales for partner restaurants and help Zume should it decide to broaden the types of food it serves.

Depending on what Zume ends up charging (and the data they demand), it’s easy to see why this could be a welcome partnership for restaurants. As delivery services like Uber Eats and DoorDash take off, more people are choosing to eat from home rather than sit in a restaurant. That’s a lot of square footage that can go unused at a restaurant, and a lot of commissions paid out to those delivery services, which eats into margins.

Additionally, hooking up with Zume would allow a restaurant to better control its own delivery destiny and better protect their brand. Instead of some indifferent third party bringing soggy fries to your door, a restaurant could take advantage of Zume’s cook on the way tech to ensure that the food arrives hot and fresh.

But it’s not all just about third parties and platforms for Zume. There’s still cool stuff like robots, and those next-gen food delivery vehicles, which come with six high-efficiency ovens that can make 120 pizzas in an hour. Now we’ll just have to see how many restaurants climb aboard.

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