Fantuan, a Vancouver-based Asian food delivery company, has recently made a significant acquisition, taking over the delivery business line of Chowbus. The financial details of this acquisition have not been disclosed.
Key Takeaway
Fantuan, a Vancouver-based Asian food delivery company, has acquired the delivery business line of Chowbus, a Chicago-based delivery service. The acquisition aims to combine the strengths of both companies to better serve local Asian restaurants.
The Acquisition
Chowbus, originally a Chicago-based delivery service, was established in 2016 with a focus on assisting small Asian restaurants in expanding their customer base. The company experienced rapid growth, expanding to over 20 cities by 2020 and securing $40 million in venture capital funding. In 2022, Chowbus shifted its focus to providing restaurant management software and point-of-sale services. By 2023, it had amassed over 1,000 restaurant customers.
Partnership and Future Plans
Following the acquisition, Fantuan and Chowbus have formed a partnership to leverage their respective strengths in serving local Asian restaurants. This collaboration aims to integrate Fantuan’s rapid food delivery process with Chowbus’ restaurant management software. The goal is to enhance and expand services for merchants, encompassing food delivery, restaurant SaaS systems, and beyond.
Expansion and Market Share
Fantuan, founded in 2014, operates in over 60 cities across Canada, the United States, Australia, and the United Kingdom. With the recent acquisition, the company plans to consolidate its Asia-focused food delivery services across U.S. cities. In Canada, Fantuan holds approximately 80% of the market share, while its presence in the U.S. market stands at 10%. The company aims to assist restaurants in automating orders and increasing revenue, providing additional business opportunities and convenience.
Industry Landscape
The food delivery industry is witnessing dynamic changes, with companies like JOKR and Getir making strategic moves. Uber recently announced the closure of Drizly, and Jumia discontinued its food delivery service due to competitive pressures. Antitrust regulators in the European Union have also raised concerns, reflecting the evolving landscape of on-demand delivery services.
