Uber founder to back Behrouz Biryani maker

Uber co-founder Travis Kalanick is in advanced stages of picking up a minority stake in homegrown, multi-brand cloud kitchen player Rebel Foods, earlier known as Fassos, sources aware of the matter said.

Kalanick, who was ousted as the CEO of the ride-hailing major in 2017, took over a real estate company City Storage Systems, which is making the investment in Rebel Foods.

This comes at a time when food delivery companies like Uber arm UberEats as well as Swiggy and Zomato are increasing the share of food orders being serviced by cloud kitchens.

Rebel Foods runs popular brands like Behrouz Biryani, Oven Story, The Good Bowl, and Sweet Truth, which are available across leading online food delivery platforms. “It’s a small cheque from Kalanick, which is part of the $125-million financing round for Rebel,” a person aware of the matter said.

Last month, Rebel had raised $125 million (Rs 885 crore) led by US-based hedge fund Coatue Management. Indonesia’s Go-Jek, one of the biggest startups in Southeast Asia, has also invested in the company through its investment arm Go Ventures.

Interestingly, Cloud Kitchens, which is being run by City Storage Systems, has job openings in Mumbai and Delhi, including the post of a project manager for India, according to listings on the website of Cloud Kitchens.

As a business model, cloud kitchens operate out of relatively cheaper real estate locations without offering options of dining-in to consumers. This saves operational costs for the cloud kitchens, resulting in wider margins on each delivery. Swiggy also has its own cloud kitchen division called Swiggy Access, which has private brands like The Bowl Company and Homely.

When contacted, Rebel co-founder and CEO Jaydeep Barman declined to comment on the matter. An email sent to Kalanick’s Cloud Kitchens did not elicit any response immediately. The Information, a US-based publication, reported Kalanick was opening cloud kitchens across key markets like the US, the UK, Singapore and South Korea.

Source:- https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/uber-founder-to-back-behrouz-biryani-maker/71269159