Online ordering company Lunchbox has acquired New York delivery service Spread. The goal is to create a low-fee delivery service that competes with DoorDash, GrubHub and Uber Eats.
Launched in 2020, Spread started as a way for restaurants to text deals to customers. It has developed into a commission-free marketplace for ordering and delivery. It serves over 1,500 restaurants in New York City. Spread charges $1 or $2 per delivery and makes additional money through promotions that are distributed through texts. It runs promotional campaigns with restaurants in the marketplace.
Lunchbox has historically focused on larger restaurant chains. The acquisition allows the company to service restaurants of all sizes.
“Together with Spread, we’re creating a no-commission marketplace for the restaurant industry which is an absolute game-changer as they can keep profits in-house,” said Nabeel Alamgir, CEO and co-founder of Lunchbox. “Restaurants will no longer have to give up 15-30% of their online order costs in order to compete with other restaurants and keep their doors open. Now they can process orders online completely free, and create more meaningful relationships with customers as they now have access to diner data.”
This acquisition will push Lunchbox beyond a white-labeled ordering platform to create platforms available to everyone in the restaurant industry. It will also allow the company to explore a new business model that complements its current focus area on direct ordering.
“We created Spread to answer the question: What would it look like if restaurants banded together and built their own marketplace?” said Andy Wang, co-founder and CEO of Spread. “With this acquisition, we’re able to bring our platform to millions of diners who want access to a more ethical delivery platform that helps restaurants stay profitable. I’m thrilled to be joining the Lunchbox team to spearhead this new platform and help restaurants see greater returns.”
