The ordering platform delivery.com has acquired Texas-based food delivery player Mr. Delivery, marking the start of a wider acquisition drive to expand reach across the US
The delivery.com network goes beyond restaurants as the ordering platform also connects customers with liquor stores, dry cleaners and other local businesses. With this acquisition, delivery.com now counts two and a half million customers in 1,800 cities across the US while more than 12,000 merchants have signed up to the platform.
CEO Jed Kleckner says the timing is perfect. “Delivery.com has always been focused on expanding smartly – whether that be through prior acquisitions or strategic partnerships – rather than scaling inefficiently, just for the sake of growth,” he says.
“When we see opportunities that make sense, we act quickly, and this was one of those opportunities. We are now actively pursuing other opportunities that make strategic sense, with the objective of expanding our consumer and corporate business.”
Kleckner adds that the two companies share a “local first” approach, each bringing their own strength. While delivery.com will provide an established ordering platform and the delivery know-how, Mr. Delivery brings local expertise, a network of drivers and existing relationships with merchants.
“Independent delivery service operators, many without access to venture capital, have built consequential businesses that have become part of the fabric of their local economies. We look forward to working with them – not around them – to accelerate growth,” says Kleckner.
“Delivery.com has always focused on making the best local restaurants and stores available for delivery and pickup to patrons in the neighborhood and Mr. Delivery shares our vision of empowering communities and businesses. Our complementary business models and missions make this acquisition a natural and timely fit given our broader expansion strategy this year.”
A game changer
The joining of the two businesses means that Mr. Delivery customers and operators will benefit from access to delivery.com’s confirmation tools and business analytics platform. Mr. Delivery customers, meanwhile, will benefit from the ordering process that connects them to the local restaurants in their communities and enables them to track their order.
“We’re thrilled to join forces with delivery.com and provide our market operators, consumers, restaurant owners, and drivers with access to delivery.com’s proven technology platform that delivers an excellent ordering experience across web and mobile apps,” said Laurence Levine, CEO of Mr. Delivery. “This is a game changer for us because we will be in a position to control our own destiny with a technology platform that levels the playing field against larger competitors.”
Incremental growth opportunity
Kleckner says the expansion drive comes at an advantageous time, owing to several trends he has observed. “The consumer for online ordering and delivery is starting to emerge outside large metropolitan areas and the age profile of that consumer has also broadened,” he says.
The second factor he points to is the rise of the sharing economy, such as ride share businesses. “This has conditioned people to expect to acess services through their phones. Finally, more restaurants, especially in the fast casual and quick serve segments, now recognise that online ordering and delivery provide an incremental growth opportunity.”
Levine expects this acquisition to form part of a much bigger trend. “I believe there is going to be further consolidation in this space, as the main players look to capture further market share,” he says. “I have seen many of the large national restaurant chains jump into this space lately, as they’re clearly seeing value in meeting incremental demand for delivery from their customers.”