Peach, an upcoming lunch delivery startup raises $8 million in an investment round led by Madrona Venture Group and Vulcan Capital.
Based in Seattle, Peach targets at office goers in high-density urban areas to deliver food. The office workers have to sign up for the service after which he/she receives a text message every morning on the weekdays with a link to a single selected dish. If the customer receives ‘yes’ to the text, the food will be delivered at the already assigned office building. The startup picks up the food from partnered restaurants and drops it for the customers. It has signed agreements with around 125 restaurants in Seattle and San Diego. The company generates revenue by taking a cut of 15% to 20% of each sale, which averages about $12. Till date, the startup claims to have delivered more than 400,000 lunches since its inception last June.
Nishant Singh, CEO of Peach says that its common to have number of workers from a same office to place order which is the company’s main appeal. The startup can offer a bulk-order boost to restaurants business especially during its slow periods like weekdays. The algorithm of the company serves helpful to estimate how many users will order each item to give the restaurant an overall idea of the quantity of the food to be prepared.
“They have given us some phenomenal exposure,” said the delighted Ryan Sanwire, the owner of Paseo Caribbean Food in Seattle. He also added, “We are not able to reach an audience sitting behind a desk that may be unable, because of distance or time constraints, to get out and try us. Peach has such a great model because it reaches out to multiple employees in a corporate office, so the orders are sizable and that makes the logistics simpler.”
With the newly secured funds, Peach plans to expand to other cities. “This money is going to be pumped into expansion and making Peach a more successful business,” said Singh. Starting with Boston and then plans to open up in Washington DC. Apart from the expansion plans, it also has plans to take in around 20 extra staff members.
Singh, who worked for Amazon.com, founded Peach in 2014 with two other Amazon ex-employees. It currently employees 25 people and function is two cities. Soon can be found in other cities too.