Peach, a meal delivery service that focuses on providing lunch in Seattle and San Diego, secured $8 million in funding from Madrona Venture Group and Vulcan Capital, The New York Times reported yesterday (Aug. 18).
Peach, a meal delivery service that focuses on providing lunch in Seattle and San Diego, secured $8 million in funding from Madrona Venture Group and Vulcan Capital, The New York Times reported yesterday (Aug. 18).
The startup confirmed it has delivered more than 400,000 lunches since launching in June 2014 and will use its new capital to expand the reach of its operations to Boston and Washington, D.C.
“We’re looking to grab as much market share as possible,” Nishant Singh, Peach’s founder and CEO, told NYT.
Rather than charging customers a fee for delivering food from the restaurants it serves, like its competitors Postmates and GrubHub, Peach follows a different business model. The company instead charges the restaurant by adding a percentage to what the eatery would charge for the cost of the meal.
“Say a restaurant prices a sandwich at $9.50,” Singh explained. “We add 20 percent to the price, and that’s what the restaurant pays us.”
These terms are negotiated with each restaurant Peach serves, and while most of the restaurants do the deliveries themselves, Peach will facilitate a third-party delivery if requested, NYT confirmed.
Peach takes its place among fast-delivery meal options competing within major cities across the country.
Earlier this year, on-demand food delivery service Sprig closed its Series B funding round with $45 million from Social+Capital and Greylock Partners.
The app-to-kitchen service accepts orders on its iPhone and Android app and promises to deliver meals from its select short menu within 15 minutes of receiving an order. The cost? About $10 and a $2 fee, which covers delivery and tip. The meal offerings change daily, providing an array of options created using organic produce and sustainably raised meats, without abusing oils, fats or salt.
Munchery, another San Francisco-based food delivery service, was valued at roughly $300 million after its latest funding round last month. The company specializes in microwavable meals and offers a slightly different business model than competitors like Sprig and Blue Apron.
[vc_row full_width=”” parallax=”” parallax_image=””][vc_column width=”1/1″][/vc_column][/vc_row][vc_row full_width=”” parallax=”” parallax_image=””][vc_column width=”1/1″][vc_separator color=”grey” align=”align_center” style=”” border_width=”” el_width=””][vc_single_image image=”148412″ alignment=”center” style=”vc_box_shadow_3d” border_color=”grey” img_link_large=”” img_link_target=”_blank” css_animation=”left-to-right” img_size=”full” link=”http://www.pymnts.com/whats-hot-today/”][vc_column_text css_animation=””]
To check out what else is HOT in the world of payments, click here.
[/vc_column_text][vc_separator color=”grey” align=”align_center” style=”” border_width=”” el_width=””][/vc_column][/vc_row]
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More