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Monday February 27, 2012

FoodToEat.com Takes On Other Online Delivery Services

January 25, 2012 at 11:11 am

FoodToEat.com, a NY-based food-delivery startup, is looking to undercuts its online competition by charging restaurant owners only 10 cents per order for a delivery.  According to Crain’s New York Business, food delivery services like GrubHub.com, Seamless and Delivery.com add anywhere from 10 to 18 percent on top of the bill.

Founder Deepti Sharma, 25, told Crain’s that she wanted to make the service free, “But it’s hard for people to trust you when you say your service is free.”

Over the past six months, more than 1,000 diners have used her service. The site has 350 restaurants, including Famous Famiglia, Heavenly Bamboo and Rickshaw Dumpling Bar. It’s even signed up 40 food trucks and carts.

Sharma said the business plan includes generating income from restaurant advertising, but admits that is still a work in progress. FoodtoEat was initially funded by a $500,000 investment from friends and family. Next month the startup will launch a newly-designed website and marketing initiative.

Crain’s New York Business

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  • Anonymous

    With minimal restaurants collaborating, no customer reviews, and minimal pictures, I don’t see how they can compete in a crowded and entrenched business in NYC. What’s the niche they’re attacking? If they’re simply a poor man’s Seamless with low/no-fee, I don’t see them surviving. Ever hear anyone complain about the high rates Seamless or GrubHub charges? Me neither.

  • Anonymous

    What a ignorant article, complete BS.  Grubhub does not mark up the food one bit, clearly they have no idea what they are talking about.  The only revenue grubhub makes is from the restaurant based upon a small commission on each order.  The consumer never gets charged, and this article is completely false. You would actually be the first food order site to charge the consumer which is what you stated above! Joke is on you! You should have used the 500K to open up a dunkin donuts or 7-11, not a online website.  Good luck penetrating the market!! HAHAHAH

  • http://profile.yahoo.com/42UFUR3JWCX5G4LOO5BL47S47E Gary

    My uncle’s restaurant just closed because theres too many daily deals sites and ordering services that charge you an arm and a leg for every order. Customers make a quick buck but don’t realize that theyre killing restaurant owners. I wish this website had been around a little sooner