Move over Uber Eats and GrubHub, there’s a new challenger emerging.
Snackpass is making serious waves after recently raising $70 million from investors, joining the likes of Uber Eats, GrubHub, and DoorDash. With a focus on pickup orders instead of delivery, Snackpass is aiming for college towns where users are wary of high delivery fees. They hope to use the investment to expand into several new and large markets, offering serious competition for the food delivery app giants.
Restaurateur Philip Camino and chef Nyesha Arrington discuss Snackpass’ recent Series B funding, their expansion plans, and how cities imposing fee caps could change the landscape for food delivery apps.
Listen to Philip and Nyesha discuss Snackpass:
- Snackpass started in 2017 and by 2019 had gained $21 million in funding
- In June, Snackpass raised another $70 million through Series B funding
- The most recent investment raises the valuation of the company to more than $400 million
- Snackpass focuses on pickup orders rather than delivery and is targeting college towns where cash-strapped users want to avoid high delivery fees found on competing apps like GrubHub and UberEats
- Unlike food delivery apps that have fees as high as 30%, Snackpass commissions begin at just 7% for restaurants
- Snackpass is using this investment to expand their teams as well as move into new markets in New York, Los Angeles, Miami, San Francisco, Chicago, Washington D.C. and Austin, Texas.
- Currently, Snackpass has over 500,000 users in 13 college towns with users ordering an average of 4.5 times per month
Links:
Restaurant Dive - Social e-commerce platform Snackpass raises $70M
Tech Crunch - Snackpass gobbles up $70M at a $400M+ valuation as its social food ordering platform crosses 500k users
Eater - Will permanent fee caps actually rein in delivery apps
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