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Main article: Pizza

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Topics from 1 to 10 | in all: 42

Lucky coffee, unicorn stumbles, and Sam Altman’s YC wager

17:00 | 10 January

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we had TechCrunch’s Alex Wilhelm and

on hand to dig into the news, with
on the dials and more news than we could possibly cram into 30 minutes. So we went a bit over; sorry about that.

We kicked off by running through a few short-forms to get things going, including:

  • Alex wanted to talk about his recent story on Lily AI’s $12.5 million Series A. Canaan led the round into the ecommerce-focused recommendation engine that has a cool take on what people care about.
  • Danny talked about the acquisition of Armis Security to Insight for $1.1 billion, the VC round for self-driving forklift startup Vecna, and an outside-the-Valley round for Houston-based HighRadius.

Turning to longer cuts, the team dug into the latest from SoftBank, its Vision Fund, and the successes and struggles of its enormous startup bets. Leading the news cycle this week were layoffs at Zume, a robotic pizza delivery venture that is no longer pursuing robotic pizza delivery. Now it’s working on sustainable packaging. Cool, but it’s going to be hard for the company to grow into its valuation while pivoting.

Other issues have come up — more here — that paint some cracks onto the Vision Fund’s sunny exterior. Don’t be too beguiled by the bad news, Danny says, venture funds run like J-Curves, and there are still winners in that particular portfolio.

After that, we turned to China, in particular its venture slowdown. The bubble, in Danny’s view, has burst. The story discussed is here, if you want to read it. The short version for the lazy is that not only has China’s venture scene slowed down dramatically, but startups — even those with ample capital raised — are dying by the hundred. But one highly caffeinated Chinese startup continues to find growth in the world’s greatest tea market.

Finally we hit on the Sam Altman wager and the latest from Sisense, which is now a unicorn. All that and we had some fun.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

 


0

FedEx robots sent packing by NYC

21:57 | 26 November

FedEx’s autonomous delivery bot got a cold reception from New York City officials.

After the company’s SameDay Bots — named Roxo — popped up on New York City streets last week, Mayor Bill de Blasio and transportation officials delivered a sharp response: Get out.

FedEx told TechCrunch that the bots were there for a preview party for its Small Business Saturday event and are not testing in New York. Even this promotional event was too much for city officials concerned with congestion and bots taking jobs from humans.

After reports of the bot sightings, the mayor tweeted that FedEx didn’t receive permission to deploy the robots; he also criticized the company for using a bot to perform a task that a New Yorker could do. The New York Department of Transportation has sent FedEx a cease-and-desist order to stop operations the bots,  which TechCrunch has viewed.

The letter informs FedEx that its bots violate several vehicle and traffic laws, including that motor vehicles are prohibited on sidewalks. Vehicles that receive approval to operate on sidewalks must receive a special exemption and be registered. 

FedEx has been experimenting with autonomous delivery bots. Postmates and Amazon also have been testing autonomous delivery robots.

FedEx first unveiled its SameDay Bot in February 2019. The company said at the time it planned to work with AutoZone, Lowe’s, Pizza Hut,  Target, Walgreens and Walmart to figure out how autonomous robots might fit into its delivery business. The idea was for FedEx to provide a way for retailers to accept orders from nearby customers and deliver them by bot directly to customers’ homes or businesses the same day.

FedEx said its initials test would involve deliveries between selected FedEx Office locations. Ultimately, the FedEx bot will complement the FedEx SameDay City service, which operates in 32 markets and 1,900 cities.

The company has tested the bots in Memphis, Tennessee as well as Plano and Frisco, Texas and Manchester, New Hampshire, according to a spokesperson.

The underlying roots of the SameDay Bot is the iBot. The FedEx bot was developed in collaboration with DEKA Development & Research Corp. and its founder Dean Kamen who invented the Segway  and iBot wheelchair.

DEKA built upon the power base of the iBot, an FDA-approved mobility device for the disabled population, to develop FedEx’s product.

The FedEx bot is equipped with sensing technology such as LiDAR and multiple cameras, which when combined with machine learning algorithms should allow the device to detect and avoid obstacles and plot a safe path, all while following the rules of the road (or sidewalk).

 


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Robotics startup Picnic, known for its automated pizza assembly system, raises $5 million

20:30 | 19 November

Picnic, a robotics startup that focuses on food production, announced today that it has raised $5 million in additional seed funding. The new round was led by Creative Ventures, with participation from Flying Fish Partners and Vulcan Capital.

The company also said it has hired Kennard Nielsen, a product engineer who worked on the first four Kindle Fire tablets, Nike Fuelband, Microsoft Xbox and Doppler Labs’ HereOne from Doppler Labs at previous positions, as its new vice president of engineering.

The new funding will be used for product development, hiring and marketing.

Picnic is known for an automated pizza assembly system that launched in October. The configurable, modular platform currently focuses on high-volume pizza production and can reach rates of up to 180 18-inch pizzas or 300 12-inch pizzas an hour. The system fits into existing kitchen layouts, including food trucks and kiosks, and integrates with Picnic’s software to provide backend data and cloud analytics that help with consistency, speed and reducing food waste.

Picnic operates on a “robotics-as-a-service” model, with users paying for the system on a subscription basis. The pizza assembly system’s first customers were Centerplate, a food and hospitality provider for large event venues, and Washington-based restaurant chain Zaucer Pizza.

In June, Picnic also hired Mike McLaughlin, a food and beverage industry veteran who previously held roles at BUNN, Concordia Coffee Systems and Starbucks, as its vice president of product.

 


0

Glovo is opening a tech hub in Poland after gobbling a local food delivery rival

16:08 | 6 November

Barcelona-based on-demand delivery startup Glovo is beefing up its engineering capacity by opening a second tech hub, its first in Poland — with an initial plan to hire 40 additional engineers and have a total of 50 tech and product experts working predominantly out of its Warsaw office.

Glovo says it expects the Polish engineering hub to make up half of its technology capacity in time. It will have a main focus on developing user-facing features for its marketplace product and for partners operating on the platform, it adds.

It also has plans for further expansion of the facility down the line — and an overarching roadmap for its business of a 300-strong engineering team to support building out its on-demand service offering.

Its pitch is “everything” delivered on-demand, from fast food to groceries or pharmaceuticals, so long as it’s small and light enough to be handled by one of the couriers picking up jobs on its platform.

While there’s little doubt that fast food makes up the bulk of Glovo orders right now the startup has been trying to push into online grocery deliveries, to compete with giants like Amazon — including setting up its own warehouses capable of fulfilling orders within 20 minutes, 24 hours a day. (It calls these ‘dark supermarkets’ SuperGlovo — ‘super’ meaning ‘supermarket’ in Spanish. Though its ‘dark’ model has also attracted attention from Barcelona City Council for lacking a correct permit.)

In August Spanish media reported that Glovo had itself been shopping — picking up Polish food delivery platform, Pizza Portal, for an acquisition price-tag that’s billed as up to €35M (~$39M).

Glovo raised a $169M Series D back in April which included investment from Drake, owner of global pizza franchise Papa John’s — giving it the means and the motive to gobble smaller rivals in the food delivery space.

Poland being one of its existing markets in Europe. (Albeit Pizza Portal offers various types of fast food for delivery, not just pizza.)

In all, Glovo operates in more than 20 countries at this stage, though its densest markets of operation remain its home market of Spain and also Italy.

In Poland it operates in just eight cities — so the Pizza Portal acquisition looks intended to beef up its footprint there, with the latter slated as the largest food-service platform in the market — even as Glovo doubles down on expanding its engineering capacity by tapping up local tech talent.

At the same time, competition for on-demand delivery, and especially food delivery, remains fierce in Europe where a number of players — including the likes of Deliveroo, JustEat and Uber Eats, are battling it out for territory. And, in some instances, consuming each other to carve out a bigger share of lunch in key markets.

Where Glovo doesn’t operate in Europe highlights some of that ongoing food fight, with no offering in Germany or the UK, for instance. Its regional strategy focuses on the South and East. It has also been building up an international business, opening in markets in LatAm and the Middle East and Africa.

Scaling fast is certainly core to Glovo’s playbook, though. It says it launched in a new city every four days on average last year, while the 2015-founded startup now employs over 1,300 people in all.

Glovo founder Oscar Pierre will be joining us at TechCrunch Disrupt Berlin in December to chat about growing an on-demand delivery business — you can find out more about Disrupt conference passes here

 


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Pizza Hut is testing Zume’s compostable round boxes

14:00 | 22 October

Pizza Hut this morning announced plans to pilot Zume’s signature round pizza boxes. Testing for now will be extremely limited — in fact, it’s only happening at a single location in Phoenix, Ariz.

The boxes are one of a number of different technologies being pushed by the SF Bay startup. In fact, my recent conversation with Zume CEO Alex Garden quickly turned to the subject of pizza boxes.

Pizza Hut Zume Delivering the Round Box 04

“We did internet searches for two weeks trying to find packaging companies that made different pizza boxes and there really wasn’t very much out there, they’re almost all made by a small select group of companies that just repeat the same ideas over and over again,” he told me back in September. “So I said, wow that’s really weird. Okay, well, let’s just, we’re a startup, no one can tell us what the rules are. Why don’t we just get a white board and draw what a cool pizza box would be.”

Which is fair enough, I guess. And certainly there’s a lot to be said for a product that’s designed to be compostable, should it eventually be adopted by a massive chain with the scale of a Pizza Hut. For now, however, it seems the piloting is pretty limited in both time and scope. The same location will also be used to test a limited edition plant-based sausage topping by MorningStar.

Pizza Hut Zume Dinnertime the Round Box 02

Perhaps either or both will move beyond this limited publicity push. Certainly sustainable plant products and compatible packaging are steps in the right direction. It’s also another high-profile partnership for Zume, which recently announced that it will be licensing its food truck technology to the admittedly smaller-scale &Pizza chain.

 


0

Zume will provide food trucks for &pizza

16:00 | 19 September

Zume first made waves by entering the scene as a robotic pizza company. Since then, however, the SF Bay Area startup has taken pains to demonstrate that it has its sights set on a loftier goal of providing sustainable infrastructure for the restaurant industry.

Last April, the company made its Zume Pizza wing a wholly owned subsidiary of the newly minted Zume Inc. Seven months later, it reportedly snapped up $375 million from SoftBank, and, in June, used some of that money to purchase Pivot, a plant-based alternative packaging company.

Today, the company takes an important step toward larger industry outreach with the announcement of new partner, &pizza. The chain, which operates 36 “fast-casual” locations, will be utilizing Zume’s “Forward Mobile Kitchen” trucks to expand outreach in its native Washington, D.C.

The food truck model opens the company to some new opportunities not always afforded by the standard brick and mortar model, including the ability to try out new neighborhoods and check the demand for different products.

“Today it costs hundreds of thousands of dollars and takes a year, sometimes more, to open up a bricks and mortar store, but by leveraging our infrastructure they can open a new market in a matter of weeks and they can do it with a flexible financial model,” Zume CEO Alex Garden said in an interview with TechCrunch.

Zume’s offering is a combination of bespoke mobile kitchens that double as food trucks and delivery vehicles, combined with AI systems designed to better understand and respond to customer demand, based on location, traffic patterns and the like.

The deal isn’t make or break for Zume, but it’s an important step for a startup whose promises for profitability still appear fairly abstract from the outside. “What I can tell you for sure is that over between now and the end of the year there’s going to be really a staccato of announcements where we’ll talk about things we’re doing with partners and ways that we’re helping improve their businesses,” says Garden. “People can draw whatever conclusions they want from that financially, but all I can tell you about our financial approach to things is that we are good custodians of the investments that people have made in us and we take it really seriously.”

From the outside, at least, it appears as though the company has made a pivot from a focus on robot-made pizza to something much broader in search of a more viable model. Zume is quick to counter such claims, however, as Garden compares the company to the early days of Amazon. The executive notes that the company has shifted its focus to various aspects of the industry as offering real-world services like its pizza trucks has brought to life various solvable problems.

He turns to the example of pizza boxes, which Zume has transformed from the recognizable square cardboard variety to a round one with grates at the bottom, designed with the express purpose of keeping their contents warm.

“We did internet searches for two weeks trying to find packaging companies that made different pizza boxes and there really wasn’t very much out there, they’re almost all made by a small select group of companies that just repeat the same ideas over and over again,” Garden explains. “So I said, wow that’s really weird. Okay, well, let’s just, we’re a startup, no one can tell us what the rules are. Why don’t we just get a white board and draw what a cool pizza box would be.”

It’s a restless sort of approach to running a startup, but at very least, it has led the company in some interesting directions, and $375 million from SoftBank certainly demonstrates strong investor confidence for a startup with big ideas about revolutionizing the food industry.

Interestingly, it will also make &pizza a potential competitor for Zume Pizza, though the two won’t share a market for now. Garden adds that there’s plenty of space for competition. “People eat a lot of pizza,” he says. “I know it sounds like a trite answer, but there’s no risk at all of cannibalization.”

 


0

Domino’s launches e-bike delivery to compete with UberEats, DoorDash

20:02 | 13 August

Domino’s will start using custom electric bikes for pizza delivery through a partnership with Rad Power Bikes, as it aims to become more competitive with on-demand apps like DoorDash, GrubHub and UberEats.

Hundreds of e-bikes will be deployed across corporate-owned stores later this year in Baltimore, Houston, Miami and Salt Lake City, the company said Tuesday.

The e-bike announcement comes as Domino’s, which specializes in pizza, faces increasing competition from on-demand delivery apps like UberEats that offer customers far more choice. Domino’s could never offer enough menu options to compete with DoorDash or UberEats. But it can compete on service and delivery times.

The e-bikes are part of that plan. The company has also partnered with companies like Ford to test pizza delivery using autonomous vehicles. Earlier this summer, it launched a new pilot for self-driving pizza delivery in Houston in partnership with Nuro. Domino’s will use Nuro’s R2 vehicle, its second generation autonomous electric test car, which will go into service later this year.

The e-bikes supplied by Rad Power Bikes are equipped with small integrated motors to assist with pedaling and can run for 25 to 40 miles depending on the user, before needing a recharge, according to the company. The bikes are equipped with lights in the front and back, reflective materials for driver safety, and have a top assisted speed of 20 miles per hour.

Importantly, the e-bikes have been customized to hold pizza, drinks and sides. One e-bike can hold up to 12 large pizzas.

The company tested the e-bikes and discovered that service and delivery times improved, Tom Curtis, Domino’s executive vice president of corporate operations said in the announcement. The e-bikes also opened up the labor pool for the company, allowing it to tap into candidates who might not have a car or driver’s license.

Some franchisee owners were already using e-bikes and found they are essential in hilly urban areas.

“While delivery on a traditional bike solved many of our traffic and parking issues, the hills in Seattle were tough on even our best cyclists,” Greg Keller, Seattle Domino’s franchisee said a press release announcing the e-bike program. “E-bikes were a game-changer for us, and we’ve been delivering with them for three years now. We have been able to save money, provide better service, increase hiring and maintain a happy workforce.”

 


0

China’s coffee upstart Luckin pushes into India and Middle East

16:44 | 22 July

Luckin continues to expand at jaw-dropping speed as it announced plans to open shop overseas for the first time. On Monday, the Starbucks challenger from China said it has signed a memorandum of understanding to set up a joint venture with Americana Group, a major international food group.

The deal will see Luckin launch a new retail coffee business in the Greater Middle East region and India, said the company that just took its 18-month-old business public in May. Its partner has a far longer track record. Founded in Kuwait more than 50 years ago, Americana owns the local franchises of KFC, Pizza Hut, Friday’s, Costa Coffee and other prominent casual dining brands across the Middle East and North Africa.

Luckin did not provide further details of this new venture and a spokesperson for the company declined to comment when contacted by TechCrunch.

But there’s still a lot to read into its international foray. For one, Chinese companies have had a growing presence in the Middle East and India in recent times as Beijing puts forward its Belt and Road infrastructure development and investment initiative. Notably, the MoU between Luckin and Americana was signed with both Chinese and Arab government officials in attendance.

Chinese tech giants have already taken notice of the regions. Alibaba is active in the Middle East with its cloud computing business. Up-and-coming Chinese app developers such as ByteDance run the immensely popular TikTok and Helo in India. 

These countries are also blessed with emerging middle-class populations, the demographic that Luckin targets back home. In China, the coffee startup is known for shelling out large subsidies to lure millions of tea drinkers into trying its coffee beverages. Instead of attracting them to sit and relax at Starbucks-like retail stores, Luckin relies on a massive network of pickup points and delivery staff — which allows it save on rent and take advantage of China’s relatively cheap labor — to complete orders.

Luckin also owns a massive amount of user data, as all orders and payments take place over its app. It can be imagined how the Chinese startup sets out to replicate this digital-first model in places with booming internet populations.

Like China, India is historically a nation of tea lovers that’s experiencing rapid growth for coffee consumption. The beverage scene is crowded with popular tea brands like Chaayos and foreign players team up with local companies to gain an upper hand. Even international coffee behemoth is no exception as it works closely with Indian conglomerate Tata to operate more than 130 stores.

“We at Americana believe this MoU will revolutionize the food and beverage retail industry in the Greater Middle East and India, regions that provide promising prospects for new retail growth and expansion,” said Americana Group chief executive officer Kesri Kapur in a statement.

Luckin CEO Qian Zhiya noted that her company looks “forward to further expanding the freshly brewed coffee market internationally as we realize the incredible growth opportunities available to us through our innovative business model.”

The startup has indeed recorded months of stunning growth, but it is also facing skepticism from investors who are put off by its continued cash burn with no plans to achieve profitability on the horizon. Luckin is aiming to double its China-based operations from just over 2,000 locations to 4,500 by 2019, and its new global ambition is set to even further test investor patience.

 


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Domino’s serves up self-driving pizza delivery pilot in Houston

18:37 | 17 June

Domino’s really emphasizes its commitment to ‘innovation,’ but even if it’s a marketing tactic, the global pizza brand does indeed walk the walk. Case in point: It’s launching a new pilot for self-driving pizza delivery in Houston in partnership with Nuro.

Autonomous driving tech startup Nuro was founded by Dave Ferguson and Jiajun Zhu, two veterans of Google’s self-driving car project (which became Waymo), and now includes a team of self-driving engineers with experience at Waymo, Apple, Uber, GM and Tesla. The company’s ability to book such tremendous talent as a startup probably has a lot to do with the nearly $1 billion investment from SoftBank it announced in February. Or vice versa, I suppose.

Domino’s will make use of Nuro’s felt of autonomous test vehicles to deliver pizzas to people in Houston who order through their app or online, and the pizzas will be delivered using Nuro’s R2 vehicle, a second generation of its fully autonomous electric test car which will go into service later this year. Participating will be opt-in, with customers presented the self-driving option at check-out, and they’ll be given a PIN to unlock the doors and get at that sweet, sweet pizza once it rolls up to their delivery address.

This isn’t Domino’s first foray into self-driving pizza, as weird as that sounds: Ford ran a limited pilot with the pizza company in 2017, which was designed as a test to figure out the basics around consumer expectations for interacting with such a service.

 


0

Everyone loves pizza, including VCs

20:17 | 8 June

Sometimes a person (I’m not naming names here) tires of staring at startup funding data, and her hungry mind wanders to pizza.

But ordering a pizza in real life isn’t always the best choice for such people/reporters. So instead, we’ll pivot to the next best (not really) thing: Looking at what startup investors are doing vis-à-vis the pizza industry.

Turns out, VCs and growth investors are finding lots of ways to toss money at the space. A query of Crunchbase data rolled out more than 50 companies funded in the past couple of years that mention pizza in their business descriptions. In the chart below, we slice into 10 of the most heavily funded and intriguing pizza-preneurs.

Taken together, what does this assimilation of funding data portend about the future of pizza? We’re not experts in much but consuming the stuff, but nonetheless, a few trends stand out. We outline them below.

Convenience versus quality

Many top-funded startups appear to be tackling what’s long been the Achilles heel of the pizza-industrial complex: The inverse correlation between convenience and quality.

It is a persistent conundrum. You can have pizza right away that costs very little, but it tastes like microwaved cardboard. Or you can pay the going rate and wait for a fresh pie, but that involves…well, paying and waiting.

Of course, there are all manner of variations in-between: the upscale frozen pizza, the merely adequate chain pizza, the quick, greasy slice — the list goes on. Consumers seemingly have no shortage of options. And yet we long for more.

The most heavily funded pizza startups appear to target a similar consumer desire. We want a cheap, fast, custom, fresh pizza that tastes good. MOD Pizza and LeBron James-backed Blaze Pizza are two fast-growing chains with this approach. Both serve fast-cooking thin-crust pies with a wide choice of toppings for a flat price.

Meanwhile, Silicon Valley-based Zume has raised more than $400 million to scale up a model that relies on robot-equipped mobile kitchens to bake fresh pies and deliver them to hungry customers. By cutting the cost of a retail space and automating much of the baking process, Zume is betting it can provide a tasty, fresh pie more cheaply than the competition.

Healthier choices

Most of us do not consume pizza for its health benefits. Nonetheless, there are ways to make pies less fattening, more nutrient-dense or vegan-friendly.

Startups and their backers are on to this. Case in point: Caulipower, an Encino, Calif.-based startup that makes cauliflower-based pizzas and other snacks. The two-year-old company has raised just over $10 million in early-stage funding to date.

For the vegan crowd, there’s Mooliss Vegan Cheese, a startup that sells plant-based mozzarella exclusively to pizzerias and restaurants. The New York company raised $6 million in May to get more people hooked on its coconut oil- and cashew-based cheeses.

Boosting local pizzerias

For those who prefer to patronize a beloved local pizzeria, startups have tackled that angle as well, with tools aimed at making existing pie shops thrive in the digital, on-demand age.

On this front, MyPizza Technologies, best known as the developer of the app Slice, has raised around $16 million in funding to date. Its app helps local pizza shops and their customers submit and fulfill mobile orders and payments.

Another upstart, HotBox, is focused on the hot-delivery side. The Modena, Italy company has developed a delivery box that keeps pizza hot and crunchy for the journey from shop to customer.

Takeaway: we will eat more pizza

Throwing money at the pizza space could be seen as a source of disruption — displacing existing players and supply and delivery chains.

However, the disruption should be contained if something that seems both impossible and inevitable does come to pass: We all eat more pizza.

Personally, I see a strong likelihood for increased consumption, as pizza becomes something to fill more niches. In addition to serving as a greasy, cheesy treat, pizza now also works as a semi-healthy fast casual meal option, a decadent gourmet indulgence or even a vegan snack.

Most of this does not bode well for our waistlines. But it might work out profitably for pizza-preneurs and their backers.

 


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