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ChowNow acquires YC-backed POS platform Cuboh and lays off staff

TechBrunchBy TechBrunchMarch 28, 20243 Mins Read
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ChowNow, an online ordering platform and marketing services for local restaurants, has acquired Cuboh, a Y Combinator-backed point-of-sale (POS) platform that consolidates all orders from delivery apps in one place. .

This is ChowNow's first acquisition and will strengthen the company's POS integration solutions, helping restaurants fulfill orders across multiple services.

However, as part of the acquisition, ChowNow laid off approximately 30 employees, bringing the total number of employees to 300. Meanwhile, Cuboh's entire 30-person team, including marketing, sales, product, and engineering, is moving to ChowNow.

“Unfortunately, as part of our restructuring to best position our company, we have made some reductions,” ChowNow co-founder and CEO Chris Webb told TechCrunch. This comes after the company laid off 100 people in 2022.

Financial terms of the deal were not disclosed.

Founded in 2012, ChowNow connects customers with local restaurants and helps businesses establish an online presence by providing a custom online ordering system and marketing support. It also provides a dispatch system that combines restaurants and delivery drivers.

There are no fees like our competitors, and restaurants get to keep 100% of their profits. ChowNow serves over 20,000 small restaurants as customers and has helped them fulfill over 250 million online orders. The company says it has saved restaurants $700 million in fees.

ChowNow is a profitable company that has raised about $80 million to date, Webb said.

Cuboh is a remarkable addition to the company. Previously, ChowNow's dashboard could only manage a restaurant's in-store menu. Restaurants no longer have to manually manage all their menus, reducing the potential for errors and overall kitchen chaos. Menus can be updated across all delivery apps to reflect changes such as out-of-stock items or price increases.

Starting next week, restaurant owners will have access to the newly launched bundle “ChowNow + Cuboh” for $275 per month. The bundle combines the company's flagship product, ChowNow Pro ($199), which handles all ordering, marketing, and operations, with Cuboh's POS solution, which costs $100 to $200 per month.

And while ChowNow's platform is already integrated with over 30 POS systems, including Toast, Otter, MobileBytes, Positouch, and more, Cuboh has added 14 more including Clover, Lightspeed, Brink, Micros, Revel, Positouch, Square, Par, and more. Provides integration to tables. , tableware, aloha, etc.

In the future, ChowNow would like to build more integrations, such as catering services.

“We're getting back to the long-term product vision we're building, which is being the only platform restaurants need for their entire takeout business,” Webb said.



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