There’s nothing more hyperlocal than the on-demand class of startups, which feed off the everyday use cases spurred by a mobile-first world: whipping one’s phone out to order food from a local restaurant (Postmates, GrubHub, DoorDash), hail a ride (Uber and Lyft), or cut out a trip to the grocery store (Instacart, Shipt). Postmates’ founding ingenuity was to apply the convenience of ride-sharing to product delivery. Eight years later, it’s a food-delivery powerhouse, and its value may strike nearly $2 billion.
Upserve CEO Angus Davis says that seed funding is the most available right now. And because the overall economy is doing fairly well, wealthy people are increasingly doing angel investments where they previously were not.
Square made its debut on the public markets yesterday. After its much-commented-on offering price of $9 per share, which some took as a shot across the bow for unicorn startups, the Jack Dorsey-helmed payments firm surged more than 45 percent in its first day of trading. The pressure may be off Square momentarily, but it won’t stay that way for long.
“[The markets] are probably as, or in many cases, more open to [hyperlocal companies] today, largely because they’re seeing some early success in other models,” said First Analysis’ Todd Van Fleet. “They know it can be done; it’s just a question of having the right model. Whereas Groupon may have created a disconcerting tone across the space, you have had the success of Angie’s List, Yelp and even mobile payments players like Square prove that a portion of the [local business marketplace] can be won.”
What: Pulling back on the IPO throttle
This week Groupon said it would cancel the roadshow for its long-touted IPO, which was set to take place this fall and will now be postponed indefinitely.