INSUBCONTINENT EXCLUSIVE:
The team from order-ahead food startup Snackpass was willing to get their hands dirty to keep up with demand at one of their first
restaurant partners, Tropical Smoothie Cafe on the Yale University campus.Why were people so eager to pay for takeout through Snackpass?
Sending people Snackpass rewards became a new way to flirt or show gratitude at Yale
Two years after launch, Snackpass is on 11 college campuses across the U.S., often boasting a 75% penetration rate amongst students within
It takes a cut of every order and keeps margins high because users pick up the food themselves rather than waiting for delivery
While other food ordering startups battle to offer discounts as marauding users deal-hop between apps, Snackpass keeps users coming back
through its loyalty program.
Its momentum, retention and opportunity to expand from colleges to dense cities has now won Snackpass a $21
million Series A led by Andreessen Horowitz partner Andrew Chen
The round was joined by other heavy hitters, like Y Combinator, General Catalyst, Inspired Capital and First Round, plus angels, including
musician Nas, NFL star Larry Fitzgerald and legendary talent agent Michael Ovitz
small enough for customers to walk or bike to the restaurant
app called Happy Hour, rounded out the founding team.Snackpass founders (from left): Jamie Marshall and Kevin TanSnackpass offers users a
list of nearby restaurants from which they can order ahead, with special tags for ones offering deals
You pay in the app, skip the line at the restaurant and grab your order from the counter
Each restaurant can configure their own rewards system with how much items earn and cost, such as giving you a free coffee for every 10 you
buy.Users can then spend their points to get themselves free menu items, or send a virtual Snackpass gift card to any of their phone
contacts or people they find via search
This gives Snackpass a way to grow virally that most food apps lack
Thankfully, you can block people on Snackpass if they get creepy showering you with gifts.Each purchase and gift on Snackpass shows up in
its social feed unless you make it private
integration work specifically for the college market that sets it apart from other order-ahead and delivery services
And student groups from clubs to fraternities can pre-load and replenish accounts for their members
Snackpass works with the same organizations to launch on new campuses
competition in the space, restaurants can be inundated with apps to manage, some of which just exacerbate spikes in demand that overwhelm
to help it navigate the tricky SMB sales process
driving the new customers restaurants are desperate for
Tan says his startup is considering if it could charge for this kind of promotion down the line
Most customers who walk into restaurants are effectively in incognito mode, but Snackpass provides its partners with analytics to help them
margins work and consumers are trained to shop around on different apps to get the best deal or fastest delivery time
Eating food is supposed to be fun and social, and our generation grew up online and in social networks
takeout pickup like Uber and Grubhub
support could give Snackpass some extra firepower
a precise balance of customer acquisition and lifetime value is necessary.Snapchat, TikTok and Fortnite have all tapped into the youth
market with a lighthearted nature that keeps users coming back until they develop network effect
Snackpass is managing to do the same, not with a messaging app or game, but a commerce platform
