CloudKitchens

Last updated

CloudKitchens
Industry Food industry
Founders
Area served
United States
Key people
Travis Kalanick (CEO)
Services Software, Real Estate, Virtual restaurant
Parent City Storage Systems LLC
Website cloudkitchens.com

CloudKitchens is a ghost kitchen and technology company run by Uber's cofounder Travis Kalanick.

Contents

CloudKitchens' tech and real estate is focused on growing the restaurant and food-delivery markets. [1] It owns thousands of units of real estate and it's software is used by hundreds of thousands of restaurants. [2]

History

The first CloudKitchens facility opened in Los Angeles, California [3] .

In 2018, Travis Kalanick purchased a controlling stake of the infant company from Sky Dayton and Diego Berdakin when it owned two facilities. [4] It was purchased for $150 million inside a holding company named City Storage Systems LLC. [5] [6]

In January 2019, Saudi Arabia's sovereign wealth fund, Public Investment Fund, invested $400 million in the startup's Series A round. By that time, Kalanick had invested $300 million in the company; he sold $1.4 billion of his Uber stock by May 2019. [7] [8]

In 2021, CloudKitchens began selling software to Brick and Mortar restaurants [9] . In November that year, CloudKitchens raised another $850 million in a funding round that included Microsoft. [10] Microsoft had previously backed Kalanick's Uber. [11]

In 2022, Kitchen United aimed to compete with CloudKitchens by raising $100 million dollars of venture funding. [12] Kitchen United was not successful. It sold it's real estate in late 2023. [13]

CloudKitchens intentionally maintained a low media profile for years. [14] In 2024, it's CEO began speaking publicly about the companies plans [15] , in an apparent loosening of it's stealth policies.

Real Estate

CloudKitchens builds ghost kitchens and other real estate for the food industry. A ghost kitchen (or "dark kitchen" [7] ) allows the kitchen space to operate as a commissary to others, which lets costs be shared and can exist in lower-overhead spaces than a standard restaurant. [16] [17] [18] Ghost kitchen partners include:

Some of CloudKitchens' real estate includes software [20] and robotic automation that lowers cost for tenants.

Robotics

CloudKitchens builds robots that prepare food [21] and automate the conveyance of food. By 2024, millions of orders of food had been conveyed robotically. [22]

Otter

CloudKitchens created Otter, a software product, which consolidates orders from various platforms (such as Uber Eats, Postmates, Caviar, DoorDash) for kitchens. [23] [9] By 2024, Otter grew to process 18% of food delivery in the US. [24]

Over time, the Otter software suite expanded to serve other restaurant use cases. Otter now offers a Point of Sales terminals, Kitchen Display Units, and ordering Kiosks [25] .

Internet Food Court

In April 2020, CloudKitchens launched a short-lived experimental "Internet Food Court" in Koreatown, Los Angeles. After the pandemic, CloudKitchens began investing in this idea again. It launched a digital food court targetting office workers. [26]

Future Foods

CloudKitchens' branding division is named Future Foods. [27] [14] Virtual restaurant brands (or "pseudo-restaurants" [28] ) are the opposite of a ghost kitchen: they allow existing restaurants to deliver food with the Future Foods brands. [16] Future Foods handles marketing including food photography. [29]

Many Future Food's brands are provocative or whimsically named, such as

Acquisitions and lobbying

It acquired FoodStars BH Ltd, which opened in 2015. [30] [28]

References

  1. Kemp, Emma (June 17, 2020). "Ghost Ops: Counterfeit Kitchens in the Pandemic Age" . Retrieved July 3, 2023.
  2. "DeepSeek Panic, US vs China, OpenAI $40B?, and Doge Delivers with Travis Kalanick and David Sacks" on YouTube
  3. Newberg, Matt (April 6, 2020). "Amidst COVID-19, CloudKitchens Redefines Restaurants As We Know It". HNGRY. Retrieved July 3, 2023.
  4. "Microsoft invests in Travis Kalanick's CloudKitchens start-up". Financial Times. September 7, 2022. Retrieved July 3, 2023.
  5. Bhuiyan, Johana; Schleifer, Theodore (March 20, 2018). "Travis Kalanick is buying a new company that rehabs real estate and will run it as CEO". Vox .
  6. 1 2 3 4 Meghan Morris (April 22, 2021). "Travis Kalanick's stealth $5 billion startup, CloudKitchens, is Uber all over again, ruled by a 'temple of bros,' insiders say". Business Insider. Retrieved June 1, 2021.
  7. 1 2 Kate Conger (December 24, 2019). "Uber Founder Travis Kalanick Leaves Board, Severing Last Tie". The New York Times . Retrieved June 1, 2021.
  8. 1 2 3 4 Jones, Rory; Winkler, Rolfe (November 7, 2019). "Saudis Back Travis Kalanick's New Startup". WSJ. Retrieved June 1, 2021.
  9. 1 2 3 4 5 6 7 Emilie Friedlander (March 30, 2021). "The Mysterious Case of the F*cking Good Pizza". vice.com. Retrieved June 1, 2021.
  10. Morris, Meghan (January 5, 2022). "Travis Kalanick's food startup CloudKitchens has tripled its valuation to $15 billion and tapped an Amazon veteran as CFO" . Insider . Archived from the original on August 26, 2022.
  11. Lee, Dave; Bradshaw, Tim (September 7, 2022). "Microsoft invests in Travis Kalanick's CloudKitchens start-up". Financial Times .
  12. Nancy Luna (January 13, 2022). ""Why Kitchen United's CEO is following a drastically different playbook than ghost kitchen rivals Reef and CloudKitchens as he plans for supercharged growth in 2022"".
  13. Canham-Clyne, Aneurin; Moran, Catherine (November 28, 2023). "Kitchen United will sell or close all physical units, pivot to software". Restaurant Dive. Retrieved March 1, 2025.
  14. 1 2 Meghan Morris; Allana Akhtar (April 23, 2021). "Travis Kalanick's startup refused to change 'Happy Ending' branding for an Asian restaurant menu item, saying it wouldn't cave to woke culture, employees said". Business Insider. Retrieved June 1, 2021.
  15. "Uber Co-founder Travis Kalanick Envisions 'Internet Food Court' Future". May 8, 2024.
  16. 1 2 3 Mike Isaac; David Yaffe-Bellany (August 14, 2019). "The Rise of the Virtual Restaurant". The New York Times . Retrieved June 1, 2021.
  17. Jonah Engel Bromwich (December 24, 2019). "Farm to Table? More Like Ghost Kitchen to Sofa". The New York Times . Retrieved June 1, 2021.
  18. "Ousted Uber cofounder Travis Kalanick has reportedly spent $130 million on his ghost kitchen startup. Here's what it's like inside one of the secretive locations". Business Insider. October 20, 2020. Retrieved June 1, 2021.
  19. Graham Rapier (November 7, 2019). "Uber founder Travis Kalanick has reportedly raised $400 million for his next act from Saudi Arabia. He'll be competing directly with his old company". Business Insider. Retrieved June 1, 2021.
  20. Zhuyi Xue; Suming J. Chen (March 19, 2024). "Why Our Food Prep Time Prediction Works Better".
  21. Lab37 (September 20, 2023). "Introducing Bowl Builder" . Retrieved March 2, 2025.{{cite web}}: CS1 maint: numeric names: authors list (link)
  22. Tarun Pondicherry (March 2024). "Moving Millions of Orders with Robotic Conveyance" . Retrieved March 1, 2025.
  23. "Try Otter: Integrations". tryotter.com. Retrieved June 1, 2021.
  24. "Travis Kalanick | All-In Summit 2024" on YouTube
  25. "A first-of-its-kind multichannel POS system". March 1, 2025.
  26. Joe Guszkowski (July 2, 2024). "Company linked to Travis Kalanick brings bulk restaurant delivery to LA".
  27. Josh Dzieza (June 1, 2021). "The Great Wings Rush". The Verge. Retrieved June 1, 2021.
  28. 1 2 Eric Newcomer (March 11, 2019). "Uber and Travis Kalanick Are in Business Again. This Time, as Competitors". Bloomberg.com. Retrieved June 1, 2021.
  29. Joe Guszkowski (April 1, 2021). "How a virtual brand turned a Chicago brunch spot into a bagel concept". Restaurant Business. Retrieved June 1, 2021.
  30. 1 2 Winkler, Rolfe; Jones, Rory (November 7, 2019). "Meet Travis Kalanick's Secret Startup, CloudKitchens". WSJ. Retrieved June 1, 2021.
  31. 1 2 Adrianne Jeffries (September 15, 2020). "What Are Ghost Kitchens". themarkup.org. Retrieved June 1, 2021.
  32. 1 2 Patrick Fallon (April 5, 2020). "Amidst COVID-19, CloudKitchens Redefines Restaurants As We Know It". HNGRY. Retrieved June 1, 2021.