DoorDash Adds Startup Chowbotics for Meal Preparation
Food-delivery company is exploring how automation could help restaurants expand menu and market
The companies didn’t disclose the terms of the deal, which The Wall Street Journal reported earlier Monday. Chowbotics was valued at $46 million in 2018, when it last raised money, according to data firm PitchBook.
Chowbotics’ technology can whip up salads and poke bowls, among other things, and DoorDash is exploring how to deploy it across restaurants, a person familiar with the matter said. Ideas include using the technology to help restaurants expand their menu—such as enabling a pizzeria to offer salads—or to allow a salad bar to try out new locations—a kiosk at an airport, for instance—without the need for more manpower.
“We’re working on solutions to help merchants grow in an ever-challenging and changing landscape, and with Chowbotics we hope to enhance that level of support,” DoorDash said in a blog post announcing the acquisition. The company said Chowbotics had installed its meal-making robots in hundreds of locations, including universities, hospitals, and grocery stores.
While automating food production could save restaurants time and cost, it’s unclear how amenable potential diners are to these technologies.
Uber Technologies Inc. UBER 1.21% invested in building delivery drones for its Eats business, but dialed back those ambitions amid a broad restructuring last year.
Food delivery has grown at a blistering pace during the coronavirus pandemic. DoorDash Chief Executive Officer Tony Xu said in a December interview that the company became more operationally efficient during the health crisis, resulting in faster deliveries. The San Francisco-based company controlled almost half of the U.S. food-delivery market as of mid-October, up from one-third a year earlier, giving it a lead over Uber Eats, Grubhub Inc. and other rivals.
Food-delivery companies have expanded their offerings during the lockdown. Uber agreed to buy alcohol-delivery service Drizly for $1.1 billion last week. Both Uber and DoorDash made forays into grocery-delivery last year.
The health crisis also pushed the money-losing industry to consolidate. Grubhub agreed to merge with the U.K.’s Just Eat Takeaway last year while Uber acquired Postmates Inc.
Founded in 2014, Hayward, Calif.-based Chowbotics’ signature robot, called Sally, has 22 compartments that can be used to stock greens, vegetables, fruits, nuts and more. Customers order at a touch screen that provides real-time nutrition information as they build their meals. The company’s website says Sally has been used to craft meals ranging from brisket bowls to salads and yogurt bowls.