Fooda Acquires Foodsby

Today it was announced Fooda would acquire Foodsby. In this post, we'll discuss more about this acquisition and what it means for the catering industry as a whole.

Fooda acquires Foodsby

What is Fooda?

For those who don't know, Fooda brings restaurant meals to people at work. They provide various solutions around catering and group ordering for offices, hospitals, and any other group that needs a meal.

One of the solutions they have provided and have become known for are their pop-ups. Partnering with locals chefs, they bring onsite experiences to their clients. This is very popular among the larger corporations.

According to their website, Fooda provides meals for major corporations such as GoDaddy, MongoDB, JP Morgan, Netflix, and Snapchat to name a few. Fooda is based in Chicago and has a presence across many major cities across the U.S.

What is Foodsby?

A lesser known catering solution, Foodsby is an office meal curator. They have a central location within specific office buildings. Each day, customers can go onto the app, see which restaurants are delivering to their central location, and place their order.

They have developed a solution that fits the bill for smaller teams and organizations, making it easy for customers and not a waste of resources for caterers. By batching the orders together, the orders aren't as small for the caterer making it more worth the work. and resources

Foodsby is based in Minneapolis and has served over 5,000 companies across the U.S.

Why Fooda Acquires Foodsby?

As we see in the catering space, there are lots of options for an office to choose from for ordering lunch. It felt like just yesterday I wrote about Thriver being acquired by Gusto. With so many competing in the space, mergers and acquisitions are inevitable.

Fooda has primarily been focused on larger groups of 500 or more, where Foodsby is a great solution for smaller teams. Having Foodsby as a product, this opens the door for Fooda to provide to a much larger customer segment.

Also, Foodsby has a smaller footprint across the U.S. With Fooda's larger reach and scale, this can help Foodsby grow and tap into newer markets they currently don't operate in.

Impact on the Industry

Competitors in the catering space should keep an eye out for Fooda! They clearly are expanding and growing. With this acquisition, they are showing clear signs of innovation, development, and growth, which we haven't seen much of from the other players in this space.

This combination of larger scale operations for pop-ups and cafeteria takeovers, combined with the smaller, drop off focused solutions are a great match up. The Fooda/Foodsby services are becoming expansive, with offerings for teams of any shape, size, or location.

Who will make the next move?

Cater on!