With its recent acquisition of Bite Squad, Waitr has doubled its service area!
Many of our readers have probably never heard of Waitr, but the regional food delivery company has nearly doubled its service area with its recent $321 million acquisition of Bite Squad, another regional food delivery company.
The acquisition expands Waitr’s 235-city current coverage to a total of 500 cities in 22 states. Based in Minneapolis, Bite Squad brings nearly 900,000 active diners and 11,000 restaurants to Waitr, though Bite Squad will continue operating under its own brand and system for the foreseeable future.
You might wonder how Waitr plans to compete with the deep-pocketed "big four" delivery companies: Uber Eats, DoorDash, Postmates and Grubhub. Both Waitr and Bite Squad tout their business models as key differences from competitors. Namely they employ uniformed company drivers rather than gig economy independent contractors. Waitr charges a flat delivery fee while Bite Squad's varies, but the latter's liquor ordering and branded company vehicles offer key points of differentiation from other competitors. Of course, whether the customer actually cares about having their food delivered in a branded vehicle remains to be seen. We will keep you posted.