News Column

United States : ORDERUP raises $7M to build its food delivery network

August 23, 2014



D.C.-based VC fund Revolution Ventures will hed a $7 million Series A investment in online food delivery service startup OrderUp. The Baltimore-based startup declared that the financing will aid it grow on a national scale. LivingSocial co-founder and lately departed CEO Tim O Shaughnessy  also participated in the financing, making it a real local phenomenon. Revolution associate Tige Savage will join the OrderUp board, where Millennial Media co-founder and former CTO Chris Brandenburg already sits after formally spending in the firm.

OrderUp provides a platform for food delivery in 35 locations around the nation. It delivers over 10,000 orders a week, but the majority of its deal take place with restaurants using its technology to meet client orders themselves. It's the same kind of business model used by Uber and Lyft, or by the alcohol delivery firms. Technology platforms are much more popular for investment now than straight product delivery firms.  Logistics may be where the growth is, but OrderUp is keeping its fleet of delivery drivers for now. It also provides franchising to people in towns where the restaurants themselves aren't taking up the platform.

"We go well beyond just a list of restaurants that already deliver, and we re doing that by giving restaurants premier tools and services so that their customers can order delivery online and on mobile devices," said Chris Jeffery, OrderUp's CEO in a statement. "We can help restaurants whether they ve delivered for years or haven t even thought about it. That means access to more delivery options and a more transparent ordering experience for consumers."

The other main gimmick for OrderUp is that it uses its technology to focus outside the typical urban markets for delivery services. It doesn't require the density of population to succeed when it can instead endorse its platform to get restaurants and food firms to expand their own delivery services to enhance proceeds. There are hundreds of these kinds of markets for OrderUp to grow into, and with a small commission from each deal, the firm can get very competitive even with national brands like GrubHub.

"Revolution invests in companies that use technology to transform existing business models and provide consumers more choice, convenience, and control in their lives," Savage said. "OrderUp s technology and fulfillment platform allows local restaurants to participate in the growing on-demand economy, improving their bottom lines and giving their customers the quick and easy ordering and delivery that they increasingly want.  And the company s success bootstrapping the business from Baltimore over many years to many locations illustrates that great technology businesses can be built anywhere, not just Silicon Valley."


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Source: TendersInfo (India)


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