David Chang's Delivery-Only Restaurant "Ando" Acquired By UberEats

David Chang's Delivery-Only Restaurant "Ando" Acquired By UberEats

David Chang’s delivery-only restaurant, Ando, announced Monday that they have been acquired by UberEats.

It’s an interesting move for the delivery giant after Foodable reported on Uber’s jump into building virtual restaurants in established kitchens. It seems the next chapter for UberEats is producing their own food to deliver.

Uber is already on par to dominate the food delivery sector in 2018. “We’ll be the largest food delivery company in the world this year,” Uber CEO Dara Khosrowshahi said Monday at DLD in Munich.

According to the notice on Ando’s homepage, the company is shutting down its service, effective immediately, as it begins to integrate with Uber Eats. Since launching in May 2016, the company had been working with Uber Eats as a delivery partner, alongside other delivery services and a few of its own people.

UberEverything, the portion of the business not focused on ride-hailing, is run by Jason Droege who said in a statement, “We are committed to investing in technology that helps consumers, delivery and restaurant partners alike. Ando’s insights will help our restaurant technology team as we work with our restaurant partners to grow their business.”

It sounds like Uber will be combining their proprietary technology, which has allowed the business to anticipate and fill gaps in food offerings, with Ando’s technology, though Ando has not specifically said what their role will be in the new partnership.

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There is Expected Growth for Virtual Restaurants

There is Expected Growth for Virtual Restaurants

These days food can be ordered from various “existing” restaurants since businesses are increasingly offering delivery options to their guests. Also you have an array of choices when it comes to delivery apps.

But, as Foodable has reported in the past, “virtual” restaurants are on the rise— especially since these “side” businesses present themselves as an additional source of revenue to places with the extra kitchen space. 

Chances are you have ordered from one yourself, already. Services like Ando, Munchery, Savory, DoorDash, Grubhub are available to order from depending on where a customer lives and which nonrestaurants exist in their area.

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The Rise of the Virtual Restaurant

The Rise of the Virtual Restaurant

By Adria Valdes Greenhauff, Editor-at-Large

2016 has had its fair share of challenges for the restaurant industry. While Foodable has seen a spike in restaurant traffic for many emerging brands and some popular chains, several big names like Chipotle, Buffalo Wild Wings and Cosi have all reported significant declines. Couple that with rising health care premiums, and some analysts are predicting more dwindling numbers in 2017.

Luckily, the forecast isn’t all bleak.

According to NDP, restaurant delivery is growing fast. In fact, over the past four years, the segment has grown nearly 34 percent, which has many restaurants looking for creative ways to satisfy customers who prefer eating in to eating out.

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