One might easily overlook the significance of a simple plea on a local restaurant’s website: “Order directly to help us save on costly third-party fees.” Yet, this subtle call to action reflects a pervasive challenge. Though delivery platforms like Uber Eats and Doordash were vital lifelines during the COVID-19 pandemic, their high fees have further strained an industry already grappling with tight margins.
A recent Washington Post investigation painted a stark picture, revealing these platforms can take up to 30% per order, significantly eroding the thin profit margins of restaurants. The very solutions that were meant to help restaurants navigate the crisis have paradoxically added to their financial strain.
It was against this backdrop that Incentivio emerged. Ardent Venture Partners is thrilled to announce our participation in Incentivio’s Series A funding round alongside Osage Venture Partners, Grotech Ventures, and others. As an all-in-one AI platform for restaurants that sits on top of their existing POS solutions, Incentivio offers a complete guest engagement platform that includes online ordering, marketing, loyalty programs, and analytics. Its integrated approach to data across the customer journey makes it an effective dashboard for restaurants to drive revenue, improve retention, and deliver a modern digital experience.
The Incentivio Advantage
In an economic climate where businesses are gravitating towards software consolidation to reduce complexity, enhance customer experience, and achieve cost savings, Incentivio stands out.
The company leverages AI and Machine Learning models to help restaurants reduce manual intervention, cut costs, and increase revenue using their own data. The team has also built strong relationships across the ecosystem by providing integrations for existing solutions like Toast, Square, Clover, and others. Between the feature-rich platform and its strategic relationships, Incentivio has seen a 300% year-over-year growth and adoption from thousands of restaurants across the U.S. and Canada.
The Team Behind Incentivio
Incentivio’s co-founders, Rajat Bhakhri and Sash Dias, bring decades of collaborative experience to the table. They have previously founded a software development firm specializing in early-stage technology products, demonstrating their aptitude for executing their vision and intelligently expanding their team. They’ve already brought on strategic hires from leading companies across the industry to help build out the Incentivio vision.
The Timing is Right
The COVID-19 pandemic has changed consumer habits and created new opportunities for companies like Incentivio. As consumers transitioned from predominantly in-person dining to a surge in online takeout and delivery orders, this capability has become an expectation from restaurants. With omnichannel reshaping the future of dining, Incentivio is uniquely positioned to equip restaurants of all sizes to adapt.
Additionally, delivery platforms such as Uber Eats and Doordash witnessed a surge in usage throughout the pandemic due to the same customer expectations. These platforms impose hefty fees on both the restaurants and the consumers, further intensifying the need for restaurants to establish more immediate relationships with their clientele. In an industry known for its tight profit margins, it’s essential for restaurants to ensure that they are not incurring excessive fees so they can maintain competitive pricing. Hence, the need for a solution like Incentivio’s is more critical than ever.
Building a Category Winner
Our investment in Incentivio represents our belief in its potential to reshape the restaurant industry by providing a robust solution that enables them to build direct relationships with their customers. As Incentivio continues to harness AI and machine learning, we expect its impact to only grow, revolutionizing how restaurants engage with their customers and operate their businesses.
We are excited about Incentivio’s future growth and the transformative impact it is poised to have on the restaurant industry. For those who are intrigued by the prospect of being part of this transformation, we have good news: Incentivio is hiring a VP of Finance, among other roles. To join the team and be a part of this exciting journey, apply here.
