Fantuan acquires food delivery company Chowbus

Fantuanthe Vancouver, Canada-based Asian food delivery company announced the purchase Chowbus‘ business delivery line. Financial terms of the deal were not disclosed.

Chicago-based Chowbus also started as a delivery service in 2016, aimed at providing a way for mom-and-pop Asian restaurants to expand their customer base. Co-founders Suyu Zhang and Linxin Wen have expanded the company to more than 20 cities by 2020 and raised $40 million in venture capital funding, including 33 million dollars in 2020.

Then in 2022, Chowbus turned to providing restaurant management software and point-of-sale services, Yaofei Feng, co-founder of Fantuan, told TechCrunch. A year later, he had over 1,000 restaurant guests.

«We are in a similar industry, but each has a distinct demographic coverage,» Feng said. “Now we cover more in Canada and they are more in the central and eastern parts of the United States. We wanted to achieve better penetration and gain more customers, so we sat down and talked.»

Fantuan, Chowbus, food delivery

Fantuan and Chowbus come together. (Image: Fantuan)

With the acquisition comes a partnership between the two companies that will join forces with local Asian restaurants: Fantuan’s fast food delivery process with Chowbus’ restaurant management software.

«With the rapid growth of the restaurant SaaS business line, we want to focus and develop better products and services for merchants,» Linxin Wen, founder and CEO of Chowbus, said in a statement. «We are confident that our partnership with Fantuan will provide enhanced and expanded services for merchants across food delivery, restaurant SaaS systems and beyond.»

Meanwhile, Fantuan was founded in 2014 by Randy Wu and operates in more than 60 cities across Canada, the United States, Australia and the United Kingdom. In addition to restaurant delivery, the company also works in the segment of fresh food delivery and dine-in services. In December 2023. Fantuan has raised $40 million in Series C capital.

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About 20 employees from Chowbus will join Fantuan, who will also manage Chowbus’ fleet of independently contracted delivery drivers, Feng said.

After consolidating its Chowbus delivery business, Fantuan plans to consolidate its Asian-focused food delivery services in US cities. In Canada, the company already has about 80% market share, while only 10% of the US market, Feng said. The two companies also want to help restaurants gain additional business and convenience through order automation and increased revenue.

The food delivery industry is going through an interesting time. Because of JOKR, it workswhile Getir withdrew from some markets over the summer. Recently, seen Uber announces it will shut down Drizly after taking over the alcohol e-commerce business three years ago and Jumia said he was discontinuing his food delivery service because of «aggressive rivals with deep pockets”, said CEO Francis Dufay. Meanwhile, antitrust regulators in the European Union had similar suspicions about the cartel and raided two online food delivery companies in November. And an Indian food delivery company Swiggy went shopping.

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