Asian Food Delivery Startup Chowbus Raises $4 Million in Funding
In the highly competitive food delivery market, it’s not uncommon to see startups rise and fall. However, for every failure, there’s another startup waiting in the wings with a new idea and a fresh influx of funding. The latest example is Chowbus, an Asian food ordering platform based in Chicago that has just secured $4 million in seed funding.
The Problem with Traditional Food Delivery Platforms
While big-name players like Uber Eats, Grubhub, DoorDash, and Postmates dominate the market, Chowbus’ founders claim to have identified a key weakness in their business model. According to Linxin Wen, CEO of Chowbus, "When I first came to the U.S. five years ago, I found most restaurants I really liked weren’t on Grubhub or other major delivery platforms and the delivery fees were quite high."
The Central Kitchen Model: A High-Cost Approach
Wen’s observation highlights the limitations of the central kitchen model employed by some food delivery startups, including Munchery, which recently shut down its prepared meal delivery business. "The central kitchen model doesn’t work; the cost is too high," said Suyu Zhang, CTO of Chowbus.
How Chowbus Aims to Differ from the Competition
So what sets Chowbus apart? According to Wen and Zhang, their platform focuses on connecting users with independent restaurants that offer exclusive access to specific dishes. "We don’t own the kitchen or the chef, we just take advantage of the resources and help restaurants make more money," Wen explained.
Key Features of the Chowbus Platform
- Restaurant-focused: Unlike traditional food delivery platforms, Chowbus connects users with independent restaurants that offer exclusive access to specific dishes.
- No service fees: Users can order from a wide range of Asian restaurants without incurring additional service fees.
- Competitive pricing: Chowbus claims to offer competitive pricing compared to other food delivery platforms.
Expansion Plans for Chowbus
With the new funding, Chowbus aims to expand into up to 20 additional markets. The startup also plans to introduce new cuisines, starting with Mexican and Italian.
Founding Team’s Vision
Wen and Zhang founded Chowbus in 2016 with a clear vision of creating a platform that supports independent restaurants and provides users with a unique dining experience.
- Linxin Wen: CEO of Chowbus
- Suyu Zhang: CTO of Chowbus
Conclusion
The food delivery market is highly competitive, but with its innovative approach and exclusive access to restaurants, Chowbus aims to carve out a niche for itself. As the startup continues to expand its presence in new markets, it will be interesting to see how it differentiates itself from the competition.
Related Startups
- Munchery: A food delivery startup that recently shut down its prepared meal delivery business.
- Uber Eats: A leading food delivery platform owned by Uber.
- Grubhub: A popular food delivery platform in the US.
- DoorDash: A food delivery platform that offers a wide range of cuisines.
Stay Up-to-Date with TechCrunch
- TechCrunch Daily News: Get the latest news and updates on startups, venture capital, and technology.
- Startups Weekly: Stay informed about the latest developments in the startup ecosystem.
