Mobile Applications

Food Delivery App JoyRun Raises $8.5M

With food delivery services like DoorDash, Foodler and Waitr, it seems like the industry is overcrowded.

To get any funding in this category, there’s a need for innovation in the space.

That’s just what California-based startup JoyRun did with its company, landing an $8.5 million Series A round of funding by Floodgate. In total, the company has raised $10 million. What sets JoyRun apart from its counterparts in the space is that users have the capability to see who else in the area is ordering from which restaurants and can tack on their order. This way, restaurant delivery drivers can best optimize their routes, which opens the door to lower delivery fees in the future.

What’s new about JoyRun is not so much technology as business model innovation. The company’s app also lets people find out who, nearby, is already heading out to a restaurant that they like, then they can add on an order of their own. The only catch of this new service is that anyone using the app must be aware that participation includes more than just ordering — it also involves doing deliveries to neighbors from time to time. Anyone on the delivery end of this scenario makes money through a small fee of $2 to $3.

Norwest Venture Partners’ (who led the initial $1.3 million seed round) Josh Goldman commented on what JoyRun is trying to accomplish with its company: “Instead of trying to change behavior, JoyRun fits in with traditional, longstanding behavior.”

Currently, JoyRun is focusing on spreading its service through college campuses. If Facebook’s initial college focus was any indication of success, JoyRun may see a similar trajectory over the next few years.

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