Technology

Underground delivery startup Pipedream raises $13M

The company will use some of the funding to meet demand for its restaurant pickup system, which uses tunnels to move food from the kitchen to the parking lot.
Pipedream robot
Pipedream's long-term goal is to connect entire cities via underground delivery. | Photo courtesy of Pipedream

Pipedream, a startup that uses underground tunnels to move food and other goods, has raised $13 million to accelerate its efforts.

The company will use some of the funds to help meet demand for its automated pickup system for restaurants. Instant Pickup uses a robotic cart on an underground track to deliver meals from the kitchen to customers parked outside. It’s intended to shorten wait times and free up employees.

Pipedream currently has more than 100 preorders for that system, founder Garrett McCurrach wrote in a LinkedIn post Tuesday, and the funding will help it fulfill them “as quickly as possible.” Wendy’s is among the brands that plan to install Pipedream at an existing location this year.

[To learn more about Pipedream, read our profile: Pipedream wants to take restaurant pickup underground.]

Austin, Texas-based Pipedream will also use the capital to pursue its more ambitious goal of connecting entire cities with underground delivery networks. It has been testing longer deliveries in Peachtree Corners, Georgia, where it has connected an office building to a retail store via a 0.7-mile tunnel. This year, it will choose a city to begin building a larger-scale underground network that it expects to be up and running by next spring.

Pipedream's vision of “hyperlogistics” will allow people to have things delivered to their homes or offices in under 10 minutes and for less than a dollar, while also easing congestion on the streets above. Its goal is to make that a reality within the decade.

The funding round was led by Starship Ventures with participation from Cortado Ventures, Myelin Ventures and other angel investors and firms.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

The eatertainment business shows signs of wear

The Bottom Line: The food-and-games concept Chicago WhirlyBall filed for bankruptcy last week as companies like Dave & Buster’s and TopGolf show sales weakness.

Financing

This is why the restaurant business is in a value war right now

The Bottom Line: Same-store sales have slowed markedly for the past year as customers shifted to other options. And now operators are furiously working to get them back.

Financing

Saladworks-parent WOWorks is shopping for new brands to buy

The platform company is almost finished assimilating its existing six brands. Now it's time to add to the family, said CEO Kelly Roddy.

Trending

More from our partners