A startup that recently relocated from San Francisco to Chicago has raised $25 million for its 15-minute grocery delivery service.
Food Rocket said Tuesday that the Series A funding round was led by Alimentation Couche-Tard, the Canadian company that owns convenience stores such as U.S.-based Circle K and Québec-based Couche-Tard. The deal will allow Food Rocket to work closely with Circle K to expand the company's e-commerce and delivery options.
Food Rocket, founded in San Francisco in 2021, relocated its headquarters to Chicago earlier this year. Led by founder and CEO Vitaly Alexandrov, the startup promises door-to-door delivery of groceries in 15 minutes or less thanks to its network of stores, bicycle couriers and technology that can predict ordering trends.
The startup said it plans to hire 2,000 workers across its company after this latest fundraise, including in Chicago. Food Rocket says it offers full-time employment to all of its delivery riders.
Ultra-fast food delivery services have exploded in popularity in recent years, but the space has experienced growing pains. Buyk, a 15-minute delivery service that operated in Chicago, shut down this year, as did Fridge No More, which delivered in New York and Boston.
Food Rocket will look to win in the space as it competes with deep-pocketed firms like GoPuff, DoorDash and Instacart. The startup said that in California, where it launched last year, 60% of its customers ordered a second time, with a $30 average order value.
