Third-party restaurant delivery platform DoorDash Inc. DASH has reached an agreement to acquire the robotics startup company Chowbotics, according to The Wall Street Journal, which cited unnamed people familiar with the deal.
What Happened: Chowbotics is a tech company that uses robotics to assemble custom meals in under 2 minutes. The product is similar in shape to a standard vending machine, and consumers can customize salad, breakfast bowls and many other types of cuisine.
DoorDash is reportedly interested in using its acquired platform across restaurants on its platform.
The company's automation could help restaurants expand to completely new categories and generate incremental sales.
Related Link: Why Wells Fargo Is Waiting For Better DoorDash Entry Point
Why It's Important: Consumer demand for food prepared by a non-human is not a given — but the differentiating factor could come down to price.
The technology could play a role in supporting sales when a group of consumers has different dietary needs. For example, a hamburger restaurant could offer vegan products through a Chowbotics machine that prepares fresh salads.
What's Next: The financial terms of the transaction will not be disclosed if the acquisition is confirmed, according to the Journal's sources.
It is also unclear whether DoorDash would sell the machines to restaurants and continue charging the same delivery fee on all orders.
DASH Price Action: DoorDash shares were trading down 3.48% at $174.87 at last check Monday.
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