Cartwheel Raises $1 Million for On-Demand Food Delivery Platform for Restaurants and Grocery Stores

By Thomas Price Saturday, May 15, 2021

Following the onset of the COVID-19 pandemic, many restaurants could no longer serve customers in person. The only way for a small business to sell meals was to offer some sort of delivery option through a dedicated team or a third-party platform. Cartwheel is a tech startup that has created its own food delivery platform catered specifically to restaurants and grocery stores. The company recently raised seed funding to help develop the product further, grow its team, and expand its food delivery operations.

A food delivery exchanging hands.

How Cartwheel Works and Early Success

Tech startup Cartwheel works differently than other food delivery platforms by simply creating offerings that cater to businesses with or without a delivery fleet. For a restaurant that already has in-house delivery, the tech startup offers a full-feature stack that can help create a more efficient operation and reduce overall costs. For a restaurant without a delivery system, Cartwheel can provide a complete turnkey solution that can help start and oversee a new delivery system.

The food delivery company offers fleet management through driver tracking, automated dispatch, and optimized routes. Additionally, Cartwheel provides real-time text message updates to customers, an easy-to-use app available on Android and iOS for drivers, and seamless integration with other ordering apps.

These features alongside the versatility of services offered has helped the tech startup generate early success; partnering with several major restaurants. In fact, the food delivery company provides solutions to P.F. Chang’s, Taco del Mar, and Portillo’s, among other names.

The tech startup generates revenue through its two different business packages. For smaller companies, a $119 a month starter package is offered that caps out at 600 deliveries. However, for larger restaurant groups, Cartwheel has an enterprise package that charges just $0.25 per delivery.

The easy to scale business model and early adopter restaurants have made Cartwheel an exciting prospect to many investors.

Cartwheel Funding and Future Plans

In the seed funding round for the company, Cartwheel raised $1 million in capital. The funding round was led by TenOneTen Ventures with participation from Act One Ventures, Portillo’s, and a collection of angel investors. The company plans to use the funding in order to integrate more partners into the food delivery platform, increase the current team of workers, and bolster its technology further.

Cartwheel’s growth coincides with the overall growth of the on-demand food delivery market. While the tech startup recently raised seed funding, the global food delivery market is projected to grow by a whopping $44.23 billion by 2024.

When commenting on the recent seed funding raised by the company, co-founder and CEO of Cartwheel Alex Vasilkin said, “Cartwheel got its start a decade ago as one of the most successful delivery restaurants in LA. When we moved into the delivery outsourcing business in 2014, we realized we couldn't find a powerful last-mile delivery management system with all the features we wanted, so we built it ourselves. This investment will allow Cartwheel to further expand our reach, offering seamless delivery solutions to businesses that are reimagining what their delivery offerings look like in a post-pandemic world."

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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