Fantuan, a prominent Asian food delivery platform, has expanded its service capabilities by acquiring the delivery business line of Chicago-based Chowbus. The strategic move aims to enhance Fantuan’s position in the rapidly evolving food delivery industry and foster closer collaboration between the two companies.
Bringing Together Strengths for Enhanced Services
Fantuan, founded in 2014 by Randy Wu, has rapidly grown to operate in over 60 cities across the United States, Canada, Australia, and the United Kingdom. The company, which began as a Chinese-language platform for Asian food delivery, diversified its services to include grocery delivery and dine-in options. In December 2023, Fantuan secured $40 million in Series C capital, demonstrating its commitment to growth.
Chowbus, initially established in 2016 as a delivery service supporting mom-and-pop Asian restaurants, pivoted in 2022 to focus on restaurant management software and point-of-sale services. With over 1,000 restaurant customers a year later, Chowbus’s expertise in software solutions complements Fantuan’s rapid food delivery process.
Image Credits: Fantuan
The acquisition not only consolidates Chowbus’ delivery business under Fantuan but also initiates a partnership to leverage each company’s strengths. Fantuan’s efficient food delivery process will merge with Chowbus’ robust restaurant management software. This will offer an improved and expanded experience for both merchants and customers.
Fantuan’s CEO, Randy Wu, envisions the acquisition as a means to further extend the company’s advantage in the U.S. Asian delivery market. Currently holding a 10% penetration of the U.S. market, the acquisition is expected to propel Fantuan’s market share to over 60%, solidifying its position as a leader in the industry.
Building an Asian Food Ecosystem
Both Fantuan and Chowbus are committed to supporting Asian restaurants by overcoming challenges such as cultural and language gaps. The collaboration aims to establish an Asian food ecosystem, providing greater value for customers, merchants, delivery drivers, and all stakeholders.
As Fantuan integrates Chowbus’ delivery business, the company plans to focus on expanding its Asia-focused food delivery services across U.S. The partnership signifies a great move in the dynamic landscape of the food delivery industry. It showcases Fantuan’s dedication to providing top-notch services and solutions for the growing market.