Fast Track Asia announced earlier today that it would incubate food order and delivery service Foodfly. The service delivers food from a variety of restaurants that don’t deliver food themselves.
Established in 2011, Foodfly expanded on typical delivery menus that were generally limited to Chinese food, chicken and pizza. Starting in the busy center of Gangnam, the company made steady growth and eventually scored a 700 million investment from Stonebridge Capital in February last year. Since then, the company has increased its revenue by 1400% over the last year, growing at an average rate of 27% per month.
Fast Track Asia CEO Justin Park said, “Where there once was a gap for restaurants that would not, or could not deliver, Foodfly is a company which has created a niche market reaching a value of 50 trillion won without making any food of its own. We plan to support the company so it can expand its food delivery service to cover the entire Seoul area.”
Thanks to Foodfly’s localized delivery, one major food franchise makes 30% of its deliveries through the service. A representative from Foodfly said, “One small restaurant originally made an average revenue of 1 million won a month, which later increased to 5 million won in May.” With many restaurants focusing on in store sales rather than delivery, there is definitely room for a new customer base. Consumers are also actively looking for different foods when eating-in and want to be able to choose something other than Jajjangmyun at a reasonable price.
Foodfly’s CEO Eun-seon Im commented on the deal saying, “We plan to offer a competitive delivery service to consumers and companies by making our strong operation system in Gangnam more efficient, and actively form partnerships with a wider range of restaurants outside of our current 350 partners. The investment and support from Fast Track Asia will play an important part in helping Foodfly attain stability and strong growth.”