Carthero Technologies, the parent of logistics and supply chain company Roadrunnr has acquired food delivery app TinyOwl for an undisclosed amount. Note that earlier last month, both the companies were expected to merge into one, and release an app called Runnr which would deal with food delivery.
TinyOwl has now rebranded to Runnr instead of keeping its brand name, as TinyOwl co-founder Harshvardhan Mandad told MediaNama it would last month. The Runnr app has the same interface as TinyOwl. We’re presuming that instead of building from scratch, Runnr just replaced the TinyOwl logo and name. The app still shows restaurants as “temporarily closed for service improvement” outside Mumbai (We checked Pune and Bangalore). Two weeks ago, TinyOwl had shuttered operations across all its cities except some areas of Mumbai.
All of TinyOwl’s 100 employees will join Runnr. Runnr has basically pivoted from logistics to B2C food delivery and is available both on Android and iOS. The company’s app is live in south Mumbai and claims to have 150 restaurants on the platform, without a minimum order size and live delivery tracking, a feature Swiggy first introduced when it launched in the market. Bangalore based Runnr was founded in 2015 by Mohit Kumar and Arpit Dave.
Possibly faster food delivery through Runnr
According to TinyOwl’s Mandad, Runnr is expected to launch sequentially in 6 cities. While speaking to MediaNama last month, Mandad said that the company would have delivery control over its orders, unlike TinyOwl’s system where restaurants delivered food on their own. Mandad added that with Runnr, its users could expect faster food delivery. He also said that delivery through Roadrunnr was crowdsourced, and that the delivery boys were not on the payroll of either company. “There’s no payroll because it’s (this model is) scalable. On payroll, building efficiency is difficult and it will power businesses,” Mandad said of its delivery.
For the year ended 31st March 2015, TinyOwl reported revenues of Rs 43.99 lakh, and a loss for the year of Rs 25.10 crore. We couldn’t find financial details for Roadrunnr in its filings.
Runnr was a B2B platform for local delivery previously: Runnr previously let its users book, track and manage their deliveries and counted KFC, McDonald’s, Myntra, Pizza Hut, Snapdeal, the now defunct PepperTap etc. as clients. It is unclear if the company will still offer food delivery in the B2B space to its clients. Like Swiggy, it requires its delivery personnel to own a vehicle, a valid license and vehicle insurance to sign up on the platform. In April, Mint reported that food delivery accounted for 80% of the company’s orders, and it handled 12,000-15,000 orders daily.