US tech firms specialising in digital inventory management and customer ordering apps have so far raised $28m to launch new data-driven products specifically aimed at small and medium-sized café businesses in the US
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A digital Point of Service (POS) transaction at Michigan-based Madcap Coffee | Photo: Blake Wisz
Odeko, a New York-based firm specialising in digital inventory management tools for US cafés and coffee shops is to merge with North Carolina-based digital transaction provider, Cloosiv.
The new company will take on Odeko’s name to create a new digital transaction provider for small and medium-sized café businesses in the US, with a new website and digital ordering app launching on 1 September 2020.
A joint letter by Odeko founder Dane Atkinson and Cloosive founder Tim Griffin said the new firm would aim to provide the lowest transaction fees in the industry and give operators data-driven insights into supply chains, operational efficiency and customer preferences.
“It’s our goal to build the only farm-to-customer platform that makes it easier and cheaper for local suppliers and retailers to run their businesses, while offering unparalleled convenience and education for their customers,” the founders said.
In early August the companies raised $12m in a new investment round, taking the total both firms have raised for the new venture to $28m. Odeko currently counts prominent US café brands, such as LA-based Go Get Em Tiger, Philadelphia-based La Colombe Coffee Roasters and New York-based Birch Coffee as customers.
The merger comes amid the accelerated adoption of digital ordering and cashless transactions by hospitality businesses during the coronavirus pandemic. In August 2020, US boutique chain Bluestone Lane announced it had achieved 100% digital transactions since 16 March following the launch of its in-house built ‘Order Ahead’ app.
US coffee shop market leader Starbucks has also accelerated the roll out of app-based ordering during the pandemic with the launch of its ‘Pick Up’ store concept in the US.