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Fulcrum, which provides freelance placement opportunities for technical projects, raises $1 million

La Jolla, Calif.-based Fulcrum, a job-placement company for technical projects, has raised $1 million in a seed round of funding, led by local technology investment firm Greatscale Ventures with participation from several private co-investors, the company said.

The company has what it calls a fully compliant service for hiring freelancers onto technical projects that had previously only been the purview of full-time staffers — or work that would have been outsourced to pricey consulting firms.

Fulcrum says that its job-placement platform meets the regulatory requirements in 90 countries and is designed to give businesses the ability to design, manage and execute projects on demand.

The company scrapes all marketplaces that freelancers currently use and onboards them through its own service so that they can work effectively with large corporations.

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Score Cyber Monday savings on TechCrunch Sessions 2020 passes

Have we got a Cyber Monday deal for you. TC Sessions: Robotics+AI (March 3) and TC Sessions: Mobility (May 14) are coming back to California in 2020, with early-bird tickets starting at $275 and $250 respectively. But if you buy your pass today, you’ll save an extra 15% on each event. How sweet is that?

Don’t delay, startuppers. Buy your pass to TC Sessions: Robotics+AI and/or TC Sessions: Mobility before this one-day deal expires promptly tonight at 11:59 pm PT.

Oh, and did we mention that all startup exhibitor tables are also 15% off? Tables are good for early-stage startups and come with four (4) tickets and demo area at the conference. Book your table for Mobility here or one for Robotics here.

It doesn’t take artificial intelligence to recognize great opportunity, and you’ll find plenty of it at our day-long exploration of the latest issues, trends, tech and products in robotics+AI and mobility. At each of last year’s events, 1,000+ of each category’s top minds and makers gathered for live interviews, demos and workshops featuring world-renown technologists, founders and investors — not to mention world-class networking.

Past Robotics+AI Speakers:

  • Marc Raibert, Boston Dynamics
  • Melonee Wise, Fetch Robotics
  • Colin Angle, iRobot

Past Mobility Speakers:

  • Ted Serbinski, Techstars
  • Nils Wollny, Holoride
  • Ken Washington, Ford

We’re just getting started on building out the event agenda and we’ll announce plenty more speakers and panelists over the coming months, so keep checking back.

Mark your calendar, join us at UC Berkeley on March 3 for TC Sessions: Robotics or come to San Jose on May 14 for TC Sessions: Mobility and spend an entire day with the best and brightest minds and makers. Don’t miss this Cyber Monday opportunity to save an extra 15% on tickets to TC Sessions: Robotics+AI and/or TC Sessions: Mobility.

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Startups Weekly: Understanding Uber’s latest fintech play

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about how SoftBank is screwing up. Before that, I noted All Raise’s expansion, Uber the TV show and the unicorn from down under.

Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.


Uber Head of Payments Peter Hazlehurst addresses the audience during an Uber products launch event in San Francisco, California, on September 26, 2019. (Photo by Philip Pacheco / AFP) (Photo credit should read PHILIP PACHECO/AFP/Getty Images)

The sheer number of startup players moving into banking services is staggering,” writes my Crunchbase News friends in a piece titled “Why Is Every Startup A Bank These Days.”

I’ve been asking myself the same question this year, as financial services business like Brex, Chime, Robinhood, Wealthfront, Betterment and more raise big rounds to build upstart digital banks. North of $13 billion venture capital dollars have been invested in U.S. fintech companies so far in 2019, up from $12 billion invested in 2018.

This week, one of the largest companies to ever emerge from the Silicon Valley tech ecosystem, Uber, introduced its team focused on developing new financial products and technologies. In a vacuum, a multibillion-dollar public company with more than 22,000 employees launching one new team is not big news. Considering investment and innovation in fintech this year, Uber’s now well-documented struggles to reach profitability and the company’s hiring efforts in New York, a hotbed for financial aficionados, the “Uber Money” team could indicate much larger fintech ambitions for the ride-hailing giant.

As it stands, the Uber Money team will be focused on developing real-time earnings for drivers accessed through the Uber debit account and debit card, which will itself see new features, like 3% or more cash back on gas. Uber Wallet, a digital wallet where drivers can more easily track their earnings, will launch in the coming weeks too, writes Peter Hazlehurst, the head of Uber Money.

This is hardly Uber’s first major foray into financial services. The company’s greatest feature has always been its frictionless payments capabilities that encourage riders and eaters to make purchases without thinking. Uber’s even launched its own consumer credit card to get riders cash back on rides. It’s no secret the company has larger goals in the fintech sphere, and with 100 million “monthly active platform consumers” via Uber, Uber Eats and more, a dedicated path toward new and better financial products may not only lead to happier, more loyal drivers but a company that’s actually, one day, able to post a profit.


VC deals


Meet me in Berlin

The TechCrunch team is heading to Berlin again this year for our annual event, TechCrunch Disrupt Berlin, which brings together entrepreneurs and investors from across the globe. We announced the agenda this week, with leading founders including Away’s Jen Rubio and UiPath’s Daniel Dines. Take a look at the full agenda.

I will be there to interview a bunch of venture capitalists, who will give tips on how to raise your first euros. Buy tickets to the event here.


Listen to Equity

This week on Equity, I was in studio while Alex was remote. We talked about a number of companies and deals, including a new startup taking on Slack, Wag’s woes and a small upstart disrupting the $8 billion nail services industry. Listen to the episode here.

Equity drops every Friday at 6:00 am PT, so subscribe to us on iTunesOvercast and all the casts.

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Supercross’s anticipated EV class not ready for primetime in 2020

Motorcycle racing series Supercross isn’t quite ready to add an EV class.

The sport — where riders race high-performance machines on jump-filled stadium tracks — currently fields only gas-powered two-wheelers.

Supercross was poised to launch an all-electric class this month, by converting its junior program to a new e-moto manufactured by KTM — Supercross Director of Operations Dave Prater told TechCrunch in April.

“We haven’t one-hundred-percented it yet, but it’s fairly close and we’re…going to race that electric KTM in October,” he said.

That won’t likely happen for the upcoming 2020 season, but input from Supercross and KTM indicates the launch of a junior EV class could be imminent.

On why it didn’t kick-off in October, “That would be a KTM question,” Prater told TechCrunch on a call this week.

“As a company, we’re embracing EV racing. At the moment, we’re beholden to the OEM’s and how quickly they want to introduce it into the mix,” he added.

The first-mover OEM could still be KTM and the first electric class the juniors.

“The KTM Junior racing in Supercross is an incredible experience for a small group of kids and their parents. At some point we might start using the SX-E5,” KTM’s Group Marketing Manager for North America Tom Moen told TechCrunch in an email.

“We can’t have them racing something that is not readily available,” he added.

KTM SX E 5 2020KTM’s SX-E5 launched in the U.S. this month, but won’t be available in dealerships until late November, according to Moen.

So for now, there appears to be a timing gap between Supercross and KTM.

Another area to watch for the introduction of e-moto competition — according to Moen — is outdoor dirt series Motocross, the rules of which (like Supercross) are governed by the American Motorcyclist Association (AMA).

“The AMA…is working on classes for the AMA Loretta Lynn’s championships for 2020, which is the national amateur MX series, the finals happen late summer, this is much more important racing wise,” Moen said.

TechCrunch has an inquiry into AMA for confirmation and will update accordingly.

One hurdle to entering electric motorcycles in AMA gas racing is how to classify battery powered two-wheelers compared to internal combustion engines that the AMA classes based on displacement, AMA off-road racing manager Erek Kudla explained to TechCrunch in April.

The other potentially larger hurdle (as Supercross’s Dave Prater alluded to) is the lack of an OEM-produced competition e-moto capable of racing at or near the specs of the high-performance gas machines that run in Supercross and Motocross.

California based EV startup Alta Motors had come the closest toward creating an e-moto toward that endeavor, but went bankrupt before getting there.

In addition to its junior SX-E5, KTM debuted its Freeride E-XC adult off-road e-motorcycle in the U.S. in 2018, but KTM didn’t indicate if this was the bike it was planning to reconfigure for motocross.

For the moment, it looks like seven to eight-year-olds racing KTM’s SX-E5 in Supercross could be the nearest bet for EV motorcycle competition.

And Supercross creating an all EV junior class has a spot of relevance in the overall transformation of global mobility — namely the conversion of the motorcycle industry to electric.

Factors such as declining sales among young people and competitive pressure from EV startups are pushing the big names toward E offerings. Harley-Davidson launched its first e-moto, the $29K  LiveWire, this year as part of a full EV pivot.

Zero Motorcycles is challenging HD with its new $19K SR/F.  And rumors have floated on Ducati developing an e-moto, after the Italian company debuted two e-bicycles.

Harley and e-moto companies such as Zero have spoken of the importance of early adopters to embrace e-motorcycles. Harley made moves this year to reach the earliest of early adopters when it acquired kids e-bicycle company StaCyc.

Launching one of motorcycle racing’s first all-electric classes with juniors and pairing it to Supercross’s stadium venues could become more than an EV gateway for OEM KTM.

It could actually start young riders on e-motos before they’ve ever ridden gas and keep them running on voltage into teen and adult years.

For the motorcycle industry at large, that means creating a future EV market versus trying convert one with preferences set in fossil-fuel the past.

 

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Meet Bespoke Financial, a lender for cannabis companies backed by Snoop Dogg’s Casa Verde Capital

Bespoke Financial wants to provide cannabis businesses with the same kind of financial services that other businesses get, but that dispensaries and growers can’t yet access.

The regulations around cannabis operations are so stringent at the local level — and so nebulous at the federal level — that national banks won’t give businesses in the cannabis industry the same basic services (like short-term loans).

That’s why one former Goldman Sachs banker has partnered with two entrepreneurs from the traditional agriculture industry to create Bespoke Financial. And it’s why the company has raised $7 million in financing led by Casa Verde Capital — the investment firm launched by legendary cannabis aficionado, Calvin Broadus (AKA Snoop Dogg).

In some ways, George Mancheril is the new face of the cannabis business. The former banker hails from Goldman Sachs and Guggenheim Partners and worked on the desks that dealt with alternative lending.

A transplant to Los Angeles roughly six years ago, Mancheril says he saw the migration of legally sanctioned cannabis begin for recreational use and knew there would be opportunities for new lending businesses.

“Cannabis will become a broad, mature industry just like any other, and if that is going to happen, there needs to be a debt structure that can support that,” Mancheril says.

The biggest impediment to the industry’s growth is the one that Bespoke Financial wants to tackle first — and that’s access to debt.

To build the company’s first product, Mancheril looked to his co-founder’s Pablo Borquez-Schwarzbeck and Benjamin Dusastre. Borquez-Schwarzbeck and Dusastre previously launched ProducePay, a fintech platform focused on produce farmers that has financed roughly $2 billion in perishable commodities throughout 13 countries. It’s backed by around $200 million in venture capital and debt financing.  

What Mancheril and his co-founders have done is take ProducePay’s underwriting model and apply it to the cannabis industry. The financial instrument that they’re starting with is known “in the business” as factoring.

It’s basically advancing money to businesses for a contract that’s signed in exchange for a cut of the money once a company gets paid for the goods or services they’ve rendered.

BF Website Diagrams Final 02

“While the US legal cannabis market is forecasted to grow over 20% annually, reaching $23B by 2022, the industry’s true growth potential is limited by long cash flow cycles throughout the supply chain and a lack of scalable and efficient capital sources,” says Bespoke Financial co-founder and chief executive, George Mancheril, in a statement. “Our approach will dramatically improve cash flow cycles across the supply chain and provide scalable working capital to fuel our clients’ growth.”

The $7 million infusion from investors, including Casa Verde, Greenhouse Capital Partners and Outbound Ventures, will be used to build out the company’s business and establish its first credit lines with customers. Mancheril says it already has around $3 million worth of loans revolving through its business. Right now, the company is focused on California, but says it could expand to other regions that are embracing legalization. 

“In general, in the cannabis industry overall, it’s difficult to access any part of the financial system,” says Karan Wadhera, a managing director at Casa Verde. “Now that we’re moving into a place where equity financing is getting expensive, a company like Bespoke plays an important and valuable role in the ecosystem to help young brands and mature brands get access to working capital when they need it the most.”

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MediaLab acquires messaging app Kik, expanding its app portfolio

Popular messaging app Kik is, indeed, “here to stay” following an acquisition by the Los Angeles-based multimedia holding company, MediaLab.

It echoes the same message from Kik’s chief executive Tim Livingston last week when he rebuffed earlier reports that the company would shut down amid an ongoing battle with the U.S. Securities and Exchange Commission. Livingston had tweeted that Kik had signed a letter-of-intent with a “great company,” but that it was “not a done deal.”

Now we know the the company: MediaLab. In a post on Kik’s blog on Friday the MediaLab said that it has “finalized an agreement” to acquire Kik Messenger.

Kik is one of those amazing places that brings us back to those early aspirations,” the blog post read. “Whether it be a passion for an obscure manga or your favorite football team, Kik has shown an incredible ability to provide a platform for new friendships to be forged through your mobile phone.”

MediaLab is a holding company that owns several other mobile properties, including anonymous social network Whisper and mixtape app DatPiff. In acquiring Kik, the holding company is expanding its mobile app portfolio.

MediaLab said it has “some ideas” for developing Kik going forwards, including making the app faster and reducing the amount of unwanted messages and spam bots. The company said it will introduce ads “over the coming weeks” in order to “cover our expenses” of running the platform.

Buying the Kik messaging platform adds another social media weapon to the arsenal for MediaLab and its chief executive, Michael Heyward .

Heyward was an early star of the budding Los Angeles startup community with the launch of the anonymous messaging service, Whisper nearly 8 years ago. At the time, the company was one of a clutch of anonymous apps — including Secret and YikYak — that raised tens of millions of dollars to offer online iterations of the confessional journal, the burn book, and the bathroom wall (respectively).

In 2017, TechCrunch reported that Whisper underwent significant layoffs to stave off collapse and put the company on a path to profitability.

At the time Whisper had roughly 20 million monthly active users across its app and website, which the company was looking to monetize through programmatic advertising, rather than brand-sponsored campaigns that had provided some of the company’s revenue in the past. Through widgets, the company had an additional 10 million viewers of its content per-month using various widgets and a reach of around 250 million through Facebook and other social networks on which it published posts.

People familiar with the company said at the time that it was seeing gross revenues of roughly $1 million and was going to hit $12.5 million in revenue for that calendar year. By 2018 that revenue was expected to top $30 million, according to sources at the time.

The flagship Whisper app let people post short bits of anonymous text and images that other folks could like or comment about. Heyward intended it to be a way for people to share more personal and intimate details —  to be a social network for confessions and support rather than harassment.

The idea caught on with investors and Whisper managed to raise $61 million from investors including Sequoia, Lightspeed Venture Partners, and Shasta Ventures . Whisper’s last round was a $36 million Series C back in 2014.

Fast forward to 2018 when Secret had been shut down for three years while YikYak also went bust — selling off its engineering team to Square for around $1 million. Whisper, meanwhile, seemingly set up MediaLab as a holding company for its app and additional assets that Heyward would look to roll up. The company filed registration documents in California in June 2018.

According to the filings, Susan Stone, a partner with the investment firm Sierra Wasatch Capital, is listed as a director for the company.

Heyward did not respond to a request for comment.

Zack Whittaker contributed reporting for this article. 

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ZeroDown, valued at $150M, plans to take on Zillow

Days out of Y Combinator, venture capitalists valued ZeroDown, a financial and real estate technology startup, at $150 million, the company has confirmed. The startup had the perfect match of experienced founders and eye-popping ambitions to carve a new path to home ownership.

“I think we will be known as a company that makes it easier to buy a home in every single aspect,” ZeroDown co-founder and chief executive officer Abhijeet Dwivedi tells TechCrunch.

The startup, which has raised $30 million in total equity funding and more than $110 million in debt financing to help Bay Area residents make down payments on homes, now plans to take on Zillow and Redfin with its new home search engine.

The business, founded by former Zenefits chief operating officer Dwivedi, Laks Srini, Zenefits’ former chief technology officer, and Hari Viswanathan, a former Zenefits staff engineer, was founded last year and quickly landed backing from Sam Altman, followed by consumer technology venture capital fund Goodwater Capital. Targeting those in the Bay Area, where costs of home ownership are amongst the highest in the country, ZeroDown charges $10,000 to purchase your home outright and front your entire down payment.

That is, however, if your home is priced between approximately $550,000 and $1,750,000 and you have an individual or combined salary of more than $200,000, stock options and some money put away (or some variation of this). If you meet these criteria, ZeroDown will purchase your home and lease it to you. The goal is to eliminate one of the largest pain points of home-buying, the down payment, and facilitate more real estate purchases.

The company says it intends to expand the service outside the greater San Francisco area to cities like Denver, Seattle and Austin, but given the $10,000 price tag and large population of wealthy tech workers in the Bay, the business could flourish in this area without expanding.

With the launch of its home search engine, Dwivedi says users will be able to learn about more than just the square footage of a home. The tool tells users whether a potential home is naturally lit, if it has a large backyard, if it has a decent commute to your work and to various schools and, most importantly, whether it’s dog friendly.

ZeroDown has also partnered with a number of San Francisco-based tech companies, including Pinterest, Postmates and Square, to provide their employees a rebate if they choose to purchase a home using ZeroDown.

“We know first-hand what companies need to support a great quality of life and keep their employees in the Bay Area,” Dwivedi said. “A part of that is loving where you live — feeling part of a local community.”

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NASA’s first all-electric experimental X-plane is ready for testing

NASA will fly a crewed X-plane, one of the experimental aircraft it creates to test various technologies, for the first time in two decades in the near future. This X-plane, the X-57 Maxwell to be exact, is significant for another reason, too: It’s the first fully electric experimental plane that NASA will fly.

The delivery of the X-57 Maxwell to NASA’s Armstrong Flight Research Center in California means that they can begin ground testing, which will then be followed by flight testing once they confirm through the ground testing phase that it’s flight-ready. This all-electric X-57 is just one of a number of modified vehicles that will not only help NASA researchers test electric propulsion systems for aircraft, but will also help them set up standards, design practices and certification plans alongside industry for forthcoming electric aerial transportation options, including the growing industry springing up around electric vertical take-off and landing aircraft for short-distance transportation.

NASA plans to share the results of its testing and flights of the all-electric X-57, as well as its other modified versions, with industry and other agencies and regulatory bodies. The X-plane project also provides another way for NASA to work towards a number of technical challenges that will have big benefits in terms of everyday commercial aerial transportation, like boosting vehicle efficiency and lowering noise to develop planes that are far less disturbing to people on the ground.

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Osano makes business risk and compliance (somewhat) sexy again

A new startup is clearing the way for other companies to better monitor and manage their risk and compliance with privacy laws.

Osano, an Austin, Texas-based startup, bills itself as a privacy platform startup, which uses a software-as-a-service solution to give businesses real-time visibility into their current privacy and compliance posture. On one hand, that helps startups and enterprises large and small insight into whether or not they’re complying with global or state privacy laws, and manage risk factors associated with their business such as when partner or vendor privacy policies change.

The company launched its privacy platform at Disrupt SF on the Startup Battlefield stage.

Risk and compliance is typically a fusty, boring and frankly unsexy topic. But with ever-changing legal landscapes and constantly moving requirements, it’s hard to keep up. Although Europe’s GDPR has been around for a year, it’s still causing headaches. And stateside, the California Consumer Privacy Act is about to kick in and it is terrifying large companies for fear they can’t comply with it.

Osano mixes tech with its legal chops to help companies, particularly smaller startups without their own legal support, to provide a one-stop shop for businesses to get insight, advice and guidance.

“We believe that any time a company does a better job with transparency and data protection, we think that’s a really good thing for the internet,” the company’s founder Arlo Gilbert told TechCrunch.

Gilbert, along with his co-founder and chief technology officer Scott Hertel, have built their company’s software-as-a-service solution with several components in mind, including maintaining its scorecard of 6,000 vendors and their privacy practices to objectively grade how a company fares, as well as monitoring vendor privacy policies to spot changes as soon as they are made.

One of its standout features is allowing its corporate customers to comply with dozens of privacy laws across the world with a single line of code.

You’ve seen them before: The “consent” popups that ask (or demand) you to allow cookies or you can’t come in. Osano’s consent management lets companies install a dynamic consent management in just five minutes, which delivers the right consent message to the right people in the best language. Using the blockchain, the company says it can record and provide searchable and cryptographically verifiable proof-of-consent in the event of a person’s data access request.


“There are 40 countries with cookie and data privacy laws that require consent,” said Gilbert. “Each of them has nuances about what they consider to be consent: what you have to tell them; what you have to offer them; when you have to do it.”

Osano also has an office in Dublin, Ireland, allowing its corporate customers to say it has a physical representative in the European Union — a requirement for companies that have to comply with GDPR.

And, for corporate customers with questions, they can dial-an-expert from Osano’s outsourced and freelance team of attorneys and privacy experts to help break down complex questions into bitesize answers.

Or as Gilbert calls it, “Uber, but for lawyers.”

The concept seems novel but it’s not restricted to GDPR or California’s upcoming law. The company says it monitors international, federal and state legislatures for new laws and changes to existing privacy legislation to alert customers of upcoming changes and requirements that might affect their business.

In other words, plug in a new law or two and Osano’s customers are as good as covered.

Osano is still in its pre-seed stage. But while the company is focusing on its product, it’s not thinking too much about money.

“We’re planning to kind of go the binary outcome — go big or go home,” said Gilbert, with his eye on the small- to medium-sized enterprise. “It’s greenfield right now. There’s really nobody doing what we’re doing.”

The plan is to take on enough funding to own the market, and then focus on turning a profit. So much so, Gilbert said, that the company is registered as a B Corporation, a more socially conscious and less profit-driven approach of corporate structure, allowing it to generate profits while maintaining its social vision.

The company’s idea is strong; its corporate structure seems mindful. But is it enough of an enticement for fellow startups and small businesses? It’s either dominate the market or bust, and only time will tell.

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Readying an IPO, Postmates secures $225M led by private equity firm GPI Capital

Postmates, the popular food delivery service, has raised another $225 million at a valuation of $2.4 billion, the company confirmed to TechCrunch on Thursday, ahead of an imminent initial public offering.

Private equity firm GPI Capital has led the investment, first reported by Forbes, which brings Postmates’ total funding to nearly $1 billion. GPI takes non-controlling stakes — between 2% and 20% — in both late-stage private companies and publicly listed ventures.

After tapping JPMorgan Chase and Bank of America to lead its float, Postmates filed privately with the Securities and Exchange Commission for an IPO earlier this year. Sources familiar with the company’s exit plans say the business intends to publicly unveil its IPO prospectus this month.

To discuss the company’s journey to the public markets and the challenges ahead in the increasingly crowded food delivery space, Postmates co-founder and chief executive officer Bastian Lehmann will join us onstage at TechCrunch Disrupt on Friday October 4th.

As Forbes noted, last-minute financings are critical for companies poised to run out of cash and in need of an infusion prior to hitting the public markets. The motives for Postmates’ last-minute financing are unclear; however, the company will certainly begin trading on the stock market at an interesting time. 2019 has proven to be the year of unicorn listings, and former Silicon Valley darlings like Uber and Lyft have struggled to stabilize since their multi-billion-dollar debuts, despite years of support and coddling from venture capitalists.

Meanwhile, activity in the food delivery space has distracted from Postmates’ prospects. DoorDash, for one, recently purchased another food delivery service, Caviar, from Square in a deal worth $410 million. Uber is said to have considered buying Caviar, which had been looking for a buyer at least since 2016, according to Bloomberg. Postmates, for its part, has long been the subject of M&A rumors.

On-demand food delivery, undeniably popular, has yet to prove its long-term viability as a money-making business. At the very least, a sizeable check from a private equity firm ensures Postmates has the capital it needs, for the time being, to accelerate growth and double down on its autonomous robotic delivery ambitions.

Founded in 2011, Postmates is also backed by Spark Capital, Founders Fund, Uncork Capital, Slow Ventures, Tiger Global, Blackrock and others.

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