Gumdrop hopes to change the food delivery scene by providing more efficient service to restaurants and food delivery personnel. At the K-Startup Showcase on Apr. 24, Gumdrop CEO and founder Edward Song, who also founded Korean-Mexican food truck Korilla, shared the story behind his new startup.
Gumdrop is a B2B business that helps restaurants fully utilize their staff by sharing their delivery services with other, nearby businesses. Gumdrop offers a GPS system that effectively tracks delivery progress and optimizes delivery routes using a powerful algorithm . The startup’s origins are rooted in a problem he had faced as a restaurant owner.
After opening up its first permanent shop downtown, Korilla had to deal with a “necessary evil” that they had never worried about before: food delivery.
“No restaurant wants to do delivery. You get less profit from it, the delivered food can never be as good as the food made in the restaurant, and the logistics is just a pain,” Song said. “It’s a love and hate relationship for every restaurant owner.”
The emergence of food delivery applications such as Seamless and Grubhub made delivery services even more painful. Edward jokingly called them “food pimps”.
“Restaurants pay over 15% of their gross product to [food delivery apps], which don’t add any value to the service. We wanted to change that problem.”
After increasing his delivery staff to meet increasing orders, Song realized that many of his employees were inactive during off-peak hours. During a conversation with a neighboring restaurant owner about co-employing delivery personnel, Edward began to model what has become Gumdrop.
Gumdrop will launch before spring’s end. Song hopes that Gumdrop will not only evolve the food delivery service, but “help a lot of unemployed young people get paid better.”