LAKE CHARLES, LA (KPLC) - The Lake Charles based company, Waitr, is expanding with a new partnership.
Waitr is a food delivery app that began at the SEED center at McNeese State University. Since its launch, Waitr has expanded to delivering food in 235 cities.
Today the company announced its agreement to acquire another company called Bite Squad. Bite Squad is another food delivery service that was founded in Minneapolis. Waitr will acquire Bite Squad for $321.3 million. Part of the deal will be a cash purchase and the other percentage will be in shares of common stock of Waitr.
According to the announcement from Waitr, Bite Squad currently partners with over 11,000 restaurants in over 300 cities in the U.S. Combined the companies will now reach over 500 cities in 22 states.
Bite Squad will continue to be its own company while maintaining its brand, operations, technology, and employees. The combination will now allow the two delivery companies to serve secondary markets while keeping their own drivers instead of contracting out personnel.
Other benefits of the merger are:
- Significantly expand geographic footprint
- Shared strategy to establish a market leadership position in the cities the Company operates
- Leverage respective strengths to create a best-in-class organization
- Opportunity to realize cost synergies
The deal is expected to close at the end of Jan. 2019.