Vromo, an Irish delivery software startup, is ramping up its presence in the US after signing a deal with payments giant Square.
The Waterford-based startup, which raised €6.8m last year, develops software to help restaurants manage delivery orders and fleets of drivers as well as listings on third-party platforms.
The deal with Square, the fintech firm led by Jack Dorsey, will see Vromo’s tech integrated with thousands of restaurants’ point-of-sale systems that are built by Square.
“It came about because there’s a huge amount of consolidation in the market in terms of restaurant technology at the moment. You have delivery companies that are getting into the point-of-sale space and point-of-sale companies getting into other people’s space,” said chief executive Brian Hickey.
This has driven point-of-sale companies to invest more in delivery capabilities in their software.
“We’re going to focus on the US market at the moment, that will be our primary market. The majority of our business comes from the US,” Hickey said.
Pandemic lockdowns forced many restaurant businesses to rely on deliveries to stay open. The reliance on delivery created a strain for restaurants, Hickey added.
“That was ok back in the day when delivery was only a small part of your business, but for the majority of restaurants it’s not a small part of their business anymore. It’s a bigger part, so they want it to be profitable.”
Companies have been adjusting to a post-lockdown market. Last week a number of high-profile food and grocery delivery companies in Europe, including Gorillas and Getir, announced layoffs.
Hickey said that it will likely become difficult for start-ups to raise money in the current environment. Vromo closed a funding round last September of €6.8m, led by Dutch firm No Such Ventures. He said Vromo is financed for the foreseeable future.
“Thankfully we’re not currently raising, because it takes up an inordinate amount of time.”