The food delivery category is dominated by the major players like Uber Technologies Inc (NYSE:UBER) and GrubHub Inc (NYSE:GRUB), but the market seems to be large enough for niche startups like Chowbus.
What Happened: Chowbus was founded in 2016 by Suyu Zhang and Linxin Wen with the goal of connecting consumers with authentic Asian food restaurants that are mostly left out of mainstream third-party apps.
The company said in a press release that it operates in more than 20 North American cities, including New York, Boston and Los Angeles.
A unique feature of the Chowbus app is the ability for consumers to bundle dishes from multiple restaurants as part of a single delivery order.
On Wednesday, Chowbus said that it closed a $33=million Series A funding round led by Altos Ventures and Left Lane Capital, with additional participation by Hyde Park Angels, Fika Ventures, FJ Labs and Silicon Valley Bank.
"When we say we're true partners to the restaurants we work with, we mean it," Wen said in the press release.
"By eliminating hidden fees, helping them showcase their best dishes, and other efforts we make on their behalf, we really go the extra mile to help our restaurant partners succeed. We only succeed if they do."
Why It's Important: Chowbus has shown impressive growth metrics, including 700% revenue growth since last year and 300% headcount growth. The company bolstered its management team with the addition of Kenny Tsai as COO. Tsai was one of Uber's first 50 employees and is the former COO of JUMP Bikes.
What's Next: Chowbus said it will use proceeds from its capital raise to continue growing the business, expand to new cities, expand the product line and offer new services beyond delivery to help restaurants better grow their business.