Eat Club is announcing today that it has expanded to Los Angeles, having delivered more than 1.5 million meals to 2,000 offices.
It’s also disclosing a $10 million Series B funding round led by Trinity Ventures that closed last year.
“A couple years ago, [investors] looked at this and said, ‘This is messy. I want a mobile game business where a couple developers in a garage in Mountain View can push it to the app store,'” said Eat Club CEO Frank Han at his office in Palo Alto.
Now, Han said, “Every meal we sell generates positive contribution and [the] path to profitability is really clear. Our business is one that won’t just disappear.”
We were talking over lunch from Eat Club, of course. I had the tempeh and green beans, Han had the veal frikadelle. He made the better choice, I think.
Eat Club’s big appeal is that employees can choose from 15 different options on any given day using its website or mobile app.
The company makes some of its meals in-house and coordinates with restaurants for others. It has kitchens in San Francisco, Santa Clara and now Los Angeles.
As opposed to many consumer-focused food delivery apps, Eat Club has volume on its side. The company employs 150 part-time drivers who can deliver 40 or more meals per hour.
Customers can choose to fully or partially subsidize the meal, or to make their own employees pay. Businesses with 25 to 500 employees are the sweet spot, said Han. “Many hundreds” of companies use Eat Club on an active basis.
The new funding brings Eat Club to $16.5 million raised in total since being founded in 2010.
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