EatStreet wants you to know it’s national
Madison-based startup grows with partnerships
The Madison-based food ordering and delivery app EatStreet is one of the recent success stories in the Wisconsin startup scene.
The company founded in a dorm room at the University of Wisconsin-Madison in 2010 has become a real player in the online food ordering business across the United States. EatStreet connects diners in more than 250 cities to more than 15,000 restaurants.
It has raised more than $38.5 million in venture capital funding since its inception and was the first investment for nationally ranked startup accelerator gener8tor, which is based in Milwaukee.
As its rapid national growth continues, here are five things to know about the EatStreet food delivery app.
1. It prides itself on expansive options and transparent pricing.
“It’s not just pizza, Chinese and wings,” Chief Revenue Officer Marcus Higgins said. “You can get all sorts of varieties of food from Indonesian to sushi to higher-end offerings.”
The goal is to make EatStreet the top destination for online ordering with a focus on having the most dining choices and superior customer service. In Milwaukee, EatStreet lists around 200 restaurants. Competitors Seamless and Postmates have around 100.
“Our mantra is not ‘hungry to happy’ on accident, because if you’re hungry and it doesn’t go well, you go from hungry to crazy,” Higgins said.
EatStreet is transparent about its pricing structure. Delivery minimum and fees? That’s part of the game. But those numbers are shown before the order is placed. Menu items are offered at the same price as in the restaurant.
2. You can place orders on Facebook and Yelp.
The company has forged partnerships to work directly with social networking behemoth Facebook and review site Yelp.
“It’s not a homegrown local company,” Higgins said. “We’re a homegrown, national company kicking ass.”
More is to come. Higgins said the company has some “massive global partnerships” that will be announced in the coming year.
3. Delivery drivers are not independent contractors.
EatStreet’s 900 delivery drivers are regular, W-2 employees of the company. That way, Higgins said, EatStreet maintains control of its product so the company can “knock it out of the park” every time.
EatStreet launched delivery in seven cities, including Milwaukee, last year. Co-founder and CEO Matt Howard said he would like to see EatStreet double the number of cities with delivery to 14 before the end of the year.
That puts EatStreet in a good spot. The share of delivery in the restaurant market has been and is projected to continue increasing, according to financial services company Co-
wen, which tracks the rise of food on demand.
4. It’s going to keep on growing. The idea for EatStreet is to increase its presence in the markets already using the service. Last year, the firm launched its first nationwide advertising campaign. Even in Madison, its longest-running market, the company said brand awareness doubled during the campaign.
“We’re never like ‘we’ve made Howard said.
EatStreet does not share specific financial information, but Howard said revenue grew faster in 2017 than in 2016. EatStreet has raised more than $38.5 million in venture capital funding. EatStreet has around 150 employees in its Madison headquarters.
The market is increasing in size too. Online delivery is overtaking the market from offline services, according to Cowen. In 2017, 46% of delivery purchases were completed online. Cowen predicts online orders will make up
it,’ ” 73% of the market by 2022.
“We’re in an on-demand economy where people really want what they want as soon as they can get it exactly as they want it,” Higgins said. “I think that that trend is changing in all of our lives.”
EatStreet added delivery after acquiring a Philadelphia company, Zoomer. Higgins said EatStreet will acquire more delivery, software and online ordering services.
“We feel very confident about our prowess to acquire companies,” Higgins said.
5. It’s not planning on going anywhere.
While the startup scene in the state often falls toward the bottom of national rankings, that doesn’t make EatStreet want to leave.
“I am from Wisconsin,” Howard said. “This is where I want to be. We’ve been able to build a company here and show that you can build a venturebacked startup and be successful in Wisconsin.”