Toronto-based ride-sharing startup Facedrive has gained court approval to acquire restaurant and customer data from food delivery company Foodora Canada, according to court documents obtained by BetaKit. Foodora Canada ceased Canadian operations in May, and is currently in the midst of bankruptcy proceedings.
Facedrive is currently building out its own food delivery platform, Facedrive Foods.
The Ontario Superior Court of Justice has authorized the transaction, although the deal has yet to officially close. The price of the transaction has not been disclosed publicly.
Facedrive is currently building out its own food delivery platform, Facedrive Foods. Through the transaction, Facedrive is acquiring access to lists of restaurant partners and customers previously served by Foodora Canada. According to Facedrive, “more details will be provided upon the closing of the transaction.”
Earlier this year, Foodora, which was active in 10 Canadian cities, announced it was leaving the country. The company filed for bankruptcy at the end of April, declaring $4.7 million CAD in debt owed to restaurants and creditors. It officially ceased Canadian operations on May 11. Foodora Canada began as Hurrier, a Toronto-based startup that was acquired by Rocket Internet-owned Foodora in 2016 and later rebranded.
Facedrive initially disclosed its plan to acquire Foodora Canada assets on May 14. At the time, Facedrive said it expected the deal to close within 45 days.
The deal approved by the Superior Court requires Foodora to share the contact information of approximately 5,000 restaurants, and contact approximately 650,000 customers to invite them to Facedrive. It permits a 10 percent deviation from these numbers.
Facedrive’s access to Foodora’s customer data is also subject to customer consent. Under the deal’s terms, Foodora Canada was required to send email communications to its former customers directing them to Facedrive’s platform and inviting them to have their contact information included in the sale throughout May and June.
Facedrive touts itself as the first Canadian peer-to-peer, eco-friendly, and socially responsible ride-sharing network. It allows riders to choose between electric, hybrid, and conventional vehicles, and aims to offset carbon emissions by investing a percentage of rider fares in green initiatives like planting trees.
During COVID-19, Facedrive has been expanding into new verticals. The startup recently launched Facedrive Foods, a food delivery platform designed to connect customers to restaurants.
Other new Facedrive initiatives include a medical supplies delivery service, a contact tracing app, and a marketplace featuring sustainably sourced products and services. In March, Facedrive also acquired HiRide, a ride-sharing and car-pooling app.
Facedrive said it created its Foods platform “to connect residents and local businesses” during the pandemic. The startup waived fees for restaurants while the platform is being piloted in the Greater Toronto Area and London, Ontario.
“Facedrive Foods is rooted in Facedrive’s vision of becoming the one stop shop platform for eco-conscious and socially responsible users,” said Sayan Navaratnam, Facedrive’s chairman and CEO. “A full ecosystem with rideshare, delivery, entertainment, gamification and social components—all in a single platform—is the epitome of convenience with the huge added bonus of being green.”
This week, Facedrive, which is listed publicly on the TSVX, claimed it closed the second tranche of its non-brokered private placement for 368,548 common shares of its stock, generating aggregate gross proceeds of $3,316,932.
StartUp HERE Toronto is a publishing partner of Betakit and this article was originally published on their site.