Velocity Mobile, announced its acquisition of Tab Payments Corp, a well-known mobile payments app for tastemaker diners in Canada. The financial terms of the deal has not been disclosed.
Launched in early 2014, Tab Payments app for Android launched a discovery portal for its more than 100 restaurants and expanded to Montreal. Quite recently, ut began to take order through SMS, a nostalgic acknowledgement of how text messages have retained their important in the data age.
Velocity’s acquisition of Tab gives the company a quick and safe market position in Canada and enables Tab’s current and future docket of restaurants a better and strong infrastructure for reservations, payments and loyalty. Velocity is a leading UK’s largest full-service mobile dining platforms that raised $16 million in a funding round last September. This amount has given way to this acquisition which is part of Velocity’s strategy to develop a vertically integrated stack of hospitality capabilities to improve the dining experience and connect premier restaurants with the global tastemakers and top hospitality spenders.
Velocity gives important to the mobile payment aspect of its business so it wants Tab, whose brand will remain until sometime in 2016, to become a single app Canadian customers go to improve the going-out experience. “We are a hospitality company first and a technology company second. Because our customers spend 14% more than the average customer, our partners are able to give these people an advantage,” said Zia Yusuf, co-founder and co-CEO of Velocity. Yusuf refers this business model as ‘Attract, Delight, Retain,’ as the core to Velocity’s value proposition.
Yusuf continued, “The core of our service offering to the customer is not just paying your cheque without waiting – that’s attractive but not the be-all and end-all of our product – but saying to the best customers in the hospitality industry, ‘If you use our platform, you’ll have status on our platform, and the hospitality industry will identify you as a great customer.”
Alex MacDonald, co-founder and co-CEO of Velocity said, “We are committed to building an international hospitality platform. With the acquisition of Tab, we strengthen our global leadership position with reservations technology and 100 premier restaurants in Canada.”
Further to the acquisition, Tab Payments transaction, Adam Epstein , co-founder of Tab Payments will run Velocity’s Toronto and Montreal operations. Mike Kimel, Tab’s co-founder and owner of the Chase restaurant group will join the Velocity advisory board. Kimel said, “The Tab team is excited to be joining forces with Velocity. Combining forces gives us an opportunity to take our mobile hospitality services to the next level with international reach.”