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Clustertruck price6/7/2023 ![]() Most of our headquarter employees are software engineers.” ![]() ![]() “We consider ourselves very much a software company. You can’t do that without a vertically integrated software system,” said Baggott. “It knows all the customers, the locations and the drivers at the same time. Then the algorithm goes to work, gauging where the driver is, how long each menu item will take to cook and deliver. When an order comes in, it shows up on a central station. ![]() To keep orders flowing, the kitchen is all about timing and logistics. Third-party services all have said they spend more acquiring drivers than acquiring customers.” “They’re lucky to get two jobs in an hour, therefor they have this massive turnover. “ are able to do four to six jobs an hour, where the third-party delivery model can’t do that,” said Baggott. “If they are the most important person in the entire system, we’ll have great delivery people, they will never leave, they will be happy and we’ll be able to give really, really good customer service.”īecause ClusterTruck only delivers within a six- to eight-minute driving radius, they can typically complete many more jobs than a normal food-delivery gig where they would have to drive further, park and wait for food at restaurants. “Food delivery is the worst job in the gig economy, so we set out from day one to build a system where the delivery person is the core constituent,” said Baggott. They pull up to the ClusterTruck facility, take the food and hand it off to the end customer at the curb. It’s still a gig job, but drivers never leave the car. He said another key part of the vertical integration is the driver. “The second Grubhub acquires that customer, they no longer become my customer and they start selling them competitors’ burgers,” said Baggott. But for someone who was so successful with customer data, losing that may be more damning. He said for a business making 8% margins, paying a 30% fee doesn’t make sense nor does losing control over a traditional kitchen when it’s hit with both diners and delivery orders. “The restaurants are starting to realize it’s a bad deal for them.” “As I got more involved in restaurants and then started to pay attention to the food-delivery business, it led me to think that this third-party model will never work,” said Baggott. After selling his tech companies, he got into farming and then into restaurants with a burger concept and a gastro pub just as third-party delivery was getting started. He founded Exact Target and Compendium the former acquired by Salesforce for $2.5 billion and the latter acquired by Oracle for more than $870 million.īaggott said he designed the vertically integrated operation around delivery after seeing first hand the various issues with the typical food-delivery process. And he knows a few things about unicorn businesses. The integrated kitchens, technology and logistics, Baggott believes, could add up to a billion-dollar business. Like much of the industry, the key to the business is the underlying technology. Their answer to the big soggy fry dilemma is delivering faster than the fries have time to steam. “It’s about six minutes, we get really, really disappointed if your food is eight minutes old,” said Founder/CEO Chris Baggott.įrom order to delivery, the average time for the company is just 21 minutes-20 minutes faster than the industry average reported in a Food On Demand and SeeLevel mystery shopping study. When the order of pad Thai, burgers, tacos and/or barbecue is done, it’s handed off to a ClusterTruck driver for an extremely fast delivery. An Indianapolis food-delivery startup called ClusterTruck is tweaking the food-delivery model and taking aim at some of the foundational issues within the space.Įssentially, ClusterTruck is a collection of different menus or “virtual food trucks” that are all cooked in one central kitchen.
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