Dive Brief:
- Deliverect, a tech company that integrates online orders for restaurants, has acquired ChatFood, which offers social media ordering, order and pay at table and loyalty solutions, the companies announced Wednesday.
- ChatFood’s strongest market is within the Gulf region, where over 3,000 foodservice locations use its technology.
- The combined companies serve over 43,000 restaurants and foodservice companies, and service over 300 million orders in 42 markets.
Dive Insight:
Deliverect’s acquisition comes over a year after it secured $150 million in Series D financing, which the company said it would put toward engineering, technology and new products. At the time, the company was valued at over $1.4 billion after securing a total of $240 million in funding since 2018.
The acquisition of ChatFood provides Deliverect with new products, including Deliverect Social Media ordering, where customers can order food from their social media accounts, and Deliverect Order & Pay, in which restaurants can provide customers with QR codes for menus, ordering, bill management and payment. These two products will be available globally over the next few months. The company claims that ChatFood’s products have resulted in 35% higher average customer spend, three times the tips and 25% more labor efficiency.
“With ChatFood, we now provide a 360-degree solution inspired by the challenges our customers face, supporting them both with in-restaurant dining and online food delivery,” Deliverect CEO and co-founder Zhong Xu said in the press release.
The restaurant tech sector has been consolidating within the past few months, especially as deals have helped companies add to their product platforms. In February, Toast bought Delphi Display Systems to enhance its QSR product suite with digital display and drive-thru technology. That same month, Chowly made its first acquisition with Koala, a digital ordering platform that works across websites, kiosks and apps.
