Snackpass snags $21M to let you earn friends free takeout
6Reported today on TechCrunch
For the full article visit: https://techcrunch.com/2019/12/19/snackpass/
Snackpass snags $21M to let you earn friends free takeout
"We were in the back washing blenders so they could keep taking Snackpass orders," recalls co-founder and CEO Kevin Tan. The team from order-ahead food startup Snackpass was willing to get their hands dirty to keep up with demand at one of their first restaurant partners, Tropical Smoothie Cafe on the Yale University campus.
Why were people so eager to pay for takeout through Snackpass? Because it lets them earn loyalty points to redeem for free food - both for themselves and as gifts for their friends. Sending people Snackpass rewards became a new way to flirt or show gratitude at Yale. And through the Venmo-esque Snackpass social feed, users could keep up with a fresh form of gossip while discovering restaurants.
"Anywhere someone is standing in line to order something, we can solve that with Snackpass," says Tan. "Consumer spending will be social in the future."
That future is already taking hold. Two years after launch, Snackpass is on 11 college campuses across the U.S., often boasting a 75% penetration rate amongst students within six months. It takes a cut of every order and keeps margins high because users pick up the food themselves rather than waiting for delivery. While other food ordering startups battle to offer discounts as marauding users deal-hop between apps, Snackpass keeps users coming back through its loyalty program.
Its momentum, retention and opportunity to expand from colleges to dense cities has now won Snackpass a $21 million Series A led by Andreessen Horowitz partner Andrew Chen. The round was joined by other heavy hitters, like Y Combinator, General Catalyst, Inspired Capital and First Round, plus angels, including musician Nas, NFL star Larry Fitzge