TC first became familiar with MealMe when it presented as part of the Techstars Atlanta demo day last October, mentioning it in a roundup of favorite startups from a group of the accelerator’s startup cohorts.
The company’s product allows users to search for food, or a restaurant. It then displays price points from various food-delivery apps for what the user wants to eat and have delivered. And, notably, MealMe allows for in-app checkout, regardless of the selected provider.
The service could boost pricing and delivery-speed transparency amongst the different apps that help folks eat, like DoorDash and Uber Eats. But Mealme didn’t start out looking to build a search engine. Instead it took a few changes in direction to get there.
From social network to search engine
MealMe is an example of a startup whose first idea proved only directionally correct. The company began life as a food-focused social network, co-founder Matthew Bouchner told TC. That iteration of the service allowed users to view posted food pictures, and then find ordering options for what they saw.
While still operating as a social network, MealMe applied to both Y Combinator and Techstars, but wasn’t accepted at either.
The startup discovered that some of its users were posting food pics simply to get the service to tell them which delivery services would be able to bring them what they wanted. From that learning the company focused on building a food search engine, allowing users to search for restaurants, and then vet various delivery options and prices. That iteration of the product got the company into Techstars Atlanta, eventually leading to the demo day that TC reviewed.
During its time in Techstars, the company adjusted its model to not merely link to DoorDash and others, but to handle checkout inside of its own application. This captures more gross merchandize value (GMV) inside of MealMe, Bouchner explained in an interview. The capability was rolled out in September of 2020.
Since then the company has seen rapid growth, which it measures at around 20% week-on-week. During TC’s interview with MealMe, the company said that it had reached a GMV run rate of more than $500,000, and was scaling toward the $1 million mark. In the intervening weeks the company passed the $1 million GMV run-rate threshold.
MealMe was slightly coy on its business model, but it appears to make margin between what it charges users for orders and the total revenue it passes along to food delivery apps.
TC was curious about platform risk at MealMe; could the company get away with offering price comparison and ordering across multiple third-party delivery services without raising the ire of the companies behind those apps? At the time of our interview, Bouchner said that his company had not seen pushback from the services it sends users to. His company’s goal is to grow quickly, become a useful revenue source for the DoorDashes of the world, and then reach out for some of formal agreement, he explained.
“We continue to be a powerful revenue generator and drive thousands of orders to food delivery services per week,” the co-founder said in a written statement. Certainly MealMe found investors more excited by its growth than concerned about Uber Eats or other apps cutting the startup off from their service.
What first caught my eye about MealMe was the realization of how much I would have used it in my early 20s. Perhaps the company can find enough users like my younger self to help it scale to sufficient size that it can go to the major food ordering companies and demand a cut, not merely avoid being cut off.