EatStreet will add delivery services in 10 U.S. cities following the acquisition of certain assets of Philadelphia-based food delivery start-up Zoomer.
The assets from Zoomer give EatStreet the immediate ability to manage food delivery for both high-volume restaurants — many already part of EatStreet’s partner network in 10 markets — and other EatStreet restaurants. Delivery capabilities will begin in Ann Arbor, Champaign, East Lansing, Ithaca, Madison, Milwaukee, Newark, Delaware; New Brunswick, Richmond and Syracuse.
About 1,000 delivery drivers and 200-plus restaurants will join EatStreet effective immediately. The driver workforce in those 10 markets, will convert from contractors to W-2 employees, allowing them access to benefits and other company perks.
Additionally, about 30 corporate Zoomer employees also will join EatStreet, spanning functional areas from dispatch, operations, in-market leaders and sales. EatStreet will open a Philadelphia-based office for many of these workers.
Having grown exponentially since its launch seven years ago in the dorms of the University of Wisconsin–Madison, EatStreet serves 250-plus markets with access to more than 15,000 restaurants. Last year EatStreet closed its most recent round of funding, securing an additional $15 million and pushing investment to nearly $40 million. Coupled with its consistent growth, the funding has allowed EatStreet to pursue strategic opportunities such as Zoomer in order to accelerate its mission to be the most customer-focused food ordering company in the U.S.
