Loop, a startup helping to make third-party delivery more profitable for restaurants, raised $6 million in seed funding, the company tells Axios exclusively.
Why it matters: Third-party delivery continues to increase its share of restaurant revenue, but fees and commissions can account for 15% to 30% of sales.
- Restaurants also have to deal with chargebacks and order inaccuracies, which affect 3-4% of all sales from third-party marketplaces.
The big picture: “Restaurants are in a place where they have to look at this revenue stream sustainably and profitably, and they can’t do a patchwork of solutions,” Loop founder and CEO Anand Tumuluru says.
- But restaurant POS systems and ERP systems don’t account for the costs and complexity of third-party delivery services.
How it works: Loop’s platform provides tools for restaurants to manage financial reconciliation and bookkeeping across multiple third-party delivery services.
- It tracks chargebacks and order inaccuracies while helping restaurant brands keep their stores up on those services on different delivery marketplaces.
- Loop also provides an issue discovery module store managers can use to pinpoint poor performance or quality control problems.
- The company charges a monthly SaaS fee to customers based on their third-party order volume.