Navy Yard’s Zoomer Partially Acquired
Food delivery service Zoomer, which bills itself as a “network for high volume restaurants,” has folded some of its assets into the Madison, Wisconsin-based mobile food ordering service EatStreet.
EatStreet’s purchase includes Zoomer’s restaurant contracts, its drivers and 30 Zoomer corporate employees, according to a press release. The partial acquisition will also allow EatStreet to take over Zoomer’s delivery services in 10 U.S. cities, including Ann Arbor, Syracuse, and Milwaukee.
About 1,000 of Zoomer’s delivery drivers and more than 200 restaurants made the switch to EatStreet’s network last week, and drivers are making the transition from being contractors under Zoomer to W-2 employees of EatStreet. Some or all of the 30 corporate Zoomer employees will be housed in a Philadelphia-based office.
Zoomer has kept much of this deal under wraps, but an email from the company to its drivers and restaurant partners in Lexington, Kentucky, cites competition as a factor.
“Many factors contributed to this decision including local delivery competition (UberEats, GrubHub, among others), Independent Contractor competition, and balancing long-term sustainability for Zoomer in Lexington against the service Zoomer provides restaurants and diners,” the email notice said.
What wasn’t transferred over in the deal was Zoomer’s technology, a source tells Philly Mag, and according to Technical.ly, none of Zoomer’s executive team will be joining EatStreet.
Right now, it’s unclear what’s next for Zoomer’s technology and its executive team, but it looks like it’ll be a spinoff of sorts that will be “good news for Philly.” We’re standing by.
Founded in 2014, Zoomer came out of Silicon Valley’s Y Combinator incubator, and received investments from angel investor and Zynga co-founder Justin Waldron, DuckDuckGo CEO Gabriel Weinberg, and First Round Capital.
Follow @fabiolacineas on Twitter.