Social food ordering app Snackpass raises USD 70 mln

According to TechCrunch, the company will use the funding to expand to more markets in the US. The startup has 500,000 users across 13 college towns, and the new investment values it at over USD 400 million. The funding round was led by Craft Ventures, and also includes Andreessen Horowitz, General Catalyst, Y Combinator, Pioneer Fund, and a list of individual backers.

The startup is built on simple social concept – it allows people to see what their friends are eating, making it possible to order food and drinks for each other and group order, with buyers picking it all up for themselves. Moreover, although the Snackpass app integrates with delivery services like UberEats, 90% of the orders on the app are pickup, meaning that the company doesn't have to deal with its own fleets of delivery people, while the operating costs to provide that are also non-existent. 

Overall, the service has 80% penetration with students in the markets where it has launched, and the average customer orders four and a half times a month, with some customers ordering every day, TechCrunch stated.