in the years following his departure from the ride-hailing company, CloudKitchens is competing in a quickly growing segment of food-delivery sometimes called "ghost kitchens" or virtual restaurants.
From the sidewalk, you'd hardly know there are multiple bustling "restaurants" inside delivering meals via platforms like GrubHub, Uber Eats , DoorDash, and more. To date, the company's raised $700 million, according to Pitchbook data, garnering it a valuation of more than $5 billion.
But there are plenty of other competitors hoping to nab a slice of the market. Kitchen United, based in Pasadena, is backed by Google Ventures and even Amazon has invested in Europe's Deliveroo, which has similar aspirations. The coronavirus pandemic, which forced most restaurants to stop in-person service, also could be a clear catalyst for the delivery-only operations.
"Demand for ghost kitchen facilities will likely spike in the short term as restaurants seek to offer delivery services to offset declining in-store business," CB Insights said in a recent report. "However, this will likely do little to alleviate current issues facing restaurants, as the ghost kitchen business model is new and not widely available. In the longer term, restaurants may take a more strategic view of ghost kitchens, driving more demand for the service.
Lmao
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