JoyRun, a start-up company out of Santa Clara, California, announced they raised $8.5 million to help launch their new innovative business. The app is unique because it is a peer-to-peer food delivery service, which is something that we have not seen before. Essentially, it is GrubHub’s service, but without a delivery guy. That delivery guy could be your friend, your parent, or your college roommate.
JoyRun is not introducing a new wave of technology, but instead they are trying to take advantage of a revamped business model. Users of the app will be allowed to find local people who’s already heading out for a meal, and be able to add on an order of their own. Whoever is picking up the food, known as the “runner,” has the option to accept or decline the request to tack on that extra order and deliver it to the person.
In a typical scenario, a runner could make one trip and pick up a few orders. JoyRun CEO Manish Rathi said that each order costs about $2 or $3, so the runner could potentially make $10 on a trip they had already planned to take.
What makes this interesting is that “runners” are able to waive the delivery fee is they are picking up food for a friend. Although if the runner waives the fee, the customer receiving the food is still able to tip the runner through the JoyRun app.
Today’s consumers are always looking for the newest and most unique way to obtain a product or service; in this case, it is food. JoyRun has perfectly aligned the business models of Venmo, Uber, and Grubhub into one app that allows users to bond over food in the most effective way.
JoyRun is most likely focusing on college students here, but they are not limited to a specific market which raises the potential for success. I believe JoyRun will take off because of the simplicity, and they are addressing a common issue among friend groups and college students. There is no more hassle over trying to manually split the check, and it provides incentive for people to deliver food to other random users. I think this is a genius idea that could definitely be successful in the near future.
Learn more about JoyRun here.