University of Waterloo

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Tyltgo’s same-day delivery platform lets small businesses compete with Amazon

Tyltgo wants to make it easier for restaurants and small businesses to compete with same-day delivery services offered by the likes of Amazon and HelloFresh. The Canadian company, which recently raised CAD $2.3 million (USD $1.8 million) in a seed round, is akin to a white label Uber Eats, providing businesses an on-demand delivery platform under their own branding that connects them to gig economy couriers.

“I think about us as a post-purchase experience company,” co-founder and CEO Jaden Pereira told TechCrunch. “The recipient goes directly onto the merchant’s platform and places orders through them, so it feels like they’re interacting with the brand they purchased from throughout the entire experience. Our messages, notifications, tracking pages and delivery are all customized under the merchant’s brand name, but it’s powered by Tyltgo.”

The necessity of having products delivered during the pandemic’s shelter-in-place orders combined with the massive reach of e-commerce giants like Amazon has created a society that expects same-day deliveries. Tyltgo recognized the exclusionary nature of that reality on smaller businesses with less time and fewer resources, and contrived to remedy the situation with some innovative tech and gig economy couriers.

In July 2018, Pereira, 22, co-founded the company with fellow student and developer Aaron Paul while studying at the University of Waterloo. Pereira originally did deliveries himself as a side hustle, while building up a consumer-facing service on Shopify. In October 2019, Pereira and Paul shifted focus to B2B, identifying the real problem as merchants struggling to offer quality same-day delivery at an affordable price.

From December 2019 to December 2020, Tyltgo’s revenue grew 2,000%, says Pereira. The company started 2020 with two staff members and ended with nine, including former head of Uber Eats Canada’s marketplace operations, Joe Rhew, and former director of engineering at Goldman Sachs-acquired fintech company Financeit, Adnan Ali.

Aided by funding from VC firm TI Platform Management, Y Combinator and angel investor Charles Songhurst, Tyltgo projects another 1,500% revenue growth for 2021. The company’s goal is to expand its team, develop an API and app-based platform and add 100 more merchants across Ontario.

Pereira said Tyltgo originally focused on florists, and occasionally pharmacies, but demand from the restaurant industry led to the company’s new target — meal kit deliveries.

Meal kit services that provide the culinarily challenged with perfectly portioned ingredients and cooking instructions were already gaining popularity in the before times. When the pandemic hit, services like HelloFresh and Blue Apron saw even more growth. As restaurants struggled to keep their businesses open, many started to get in on the action, delivering restaurant-quality meals with instructions for heating and serving.

The global meal kit delivery services market is expected to reach almost $20 billion by 2027, with heat-and-eat options taking a large share of that market. Tyltgo is counting on the success of this industry. It has already secured partnerships with restaurants like General Assembly Pizza and Crafty Ramen, as well as with more traditional meal kit delivery services from grocery stores and organic farms.

Pereira said working in the “quasi-perishable space” of flowers and meal kits is both a challenge and a differentiator for the company. Depending on the contents of the delivery, Tyltgo will determine its perishability window and make sure to match that window with a driver. It’s also got an advanced fleet management platform that assigns a number of deliveries to suit the size of a courier’s vehicle.

“In the earlier days, the hardest part was being able to match those perishability windows without causing damage to the products,” said Pereira. “We all know that in logistics, you have to account for traffic, weather conditions, all these other things, but you have an eight-hour delivery window to get out 35 deliveries.”

Another challenge is ensuring the top-quality service Tyltgo advertises while working in the gig economy. Selecting for reliable couriers has slowed the company down at points, but Tyltgo aims to grow capacity only if it can simultaneously maintain a low error threshold.

“We won’t bring on a merchant if we don’t think we have the capacity to handle their deliveries and meet those expectations,” said Pereira.

Whether or not Tyltgo’s meal kit focus will end up driving scalability in the long run, the platform itself has legs. Pereira’s goal is to see Tyltgo become a part of every post-purchase customer experience for all retail trade categories, and that includes expanding into customer service, branding and transactions on top of delivery.

“The main reason why we’re doing this is because a lot of these smaller, brick-and-mortar retailers don’t have the time and resources to be able to compete with the Amazons of the world,” said Pereira. “We want to be able to put that power in their hands.”

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The rise of the new crypto “mafias”

Ash Egan
Contributor

Ash Egan leads crypto investing at Accomplice. He formerly was a VC at ConsenSys Ventures and Converge.

In the early 2000s, journalists popularized the term “PayPal mafia” to describe the PayPal founders and employees who left to start their own wildly successful tech companies, including Peter Thiel, Reid Hoffman, and Elon Musk. Drawing from that idea, this article seeks to cover the formation and flow of talent within the crypto landscape today.

I’m fascinated by the concept of tech mafias, popularized by Paypal in the early 00s.

Early signs of crypto mafias:

Coinbase ➡ @0xProject @dydxprotocol
Ethereum/ConsenSys ➡ @Cardano @polkadotnetwork @metamask_io
MIT ➡ @EnigmaMPC @Algorand Unit-e
IC3 ➡ Avalanche

Others?

— Ash Egan (@AshAEgan) April 3, 2019

The crypto world is in a constant state of flux, with new startups entrants joining the industry every single day. These new startups have the potential either to be superstars within a portfolio company or to start the next Coinbase. Additionally, there are already impressive spin-outs from some of the more established crypto companies.

For ease of framing, I’ve separated these early-forming mafias into four categories: CryptoTechWall Street, and Academia. Since 2009, there have been 186 spinout companies originating from those four categories (33% from Academia, 28% from Crypto, 24% from Tech, and 15% from Wall Street).

crypto mafias

Obvious but important disclaimer: this article does not intend to promote organized crime within crypto.

Criteria

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Canada’s True North conference is not your typical tech event

From the venue and the flashy event website, Waterloo, Ontario’s True North conference (in its second year) doesn’t seem all that distinct from a laundry list of other major tech events that take place each year across North America. But from the moment its main stage programming kicked off on the first day, it was clear this wasn’t your typical gathering place for the tech industry faithful.

The main stage track kicked off with Communitech CEO Iain Klugman. The event is produced by Communitech, an entrepreneurial support and resource organization founded in 1997 to foster the Waterloo region’s technology industry. Communitech sprung out of BlackBerry and the University of Waterloo and the world-class innovation community that surrounds both.

Klugman, a former communications executive and current board member at a number of Communitech-fostered startups and academic institutions, sounded a cautionary and urgent note that continued throughout the day.

Tech conferences, in general, tend to dwell on optimism and enthusiasm, with brief forays into dark alleys of negative consequences. Not this one.

Communitech CEO Iain Klugman speaking at True North 2019 in Waterloo.

Klugman’s talk touched on opportunity, but it was the opportunity to discuss among a group of peers with influence in the technology industry how they should undertake together “to set things right.” Last year’s event had a similar outcome, resulting in the “Tech for Good Declaration,” which True North describes as “the Canadian tech industry’s living document,” and includes a number of principles designed to help guide technology development with community good in mind.

Rather than changing focus for year two, True North’s organizers seem to have doubled down: Klugman’s opening talk included references to surveillance capitalism and breaches of trust, and included this cheerful analogy: “Technology is like fuel. It can warm our homes or it can burn them to the ground, so we decide which one it will do.”

As a whole, the event is about the “tough choices” faced by the collective “we” of the tech industry, according to Klugman.

True North’s official keynote perfectly took the baton from the intro, as New York Times columnist and longtime political commentator Thomas Friedman took the stage. Friedman, a somewhat controversial figure owing to some of his past political stances, launched into a talk informed by his most recent book, “Thank You for Being Late,” and talked about what we’re seeing now in human history as a moment of intersection of three different forces accelerating in a “nonlinear manner” all at once, including technological development outpacing humanity’s ability to adapt to those changes.

NYT columnist and author Thomas Friedman at True North 2019 in Waterloo.

Friedman’s talk ended with him positing that humans spend most of their time today in the essentially “god-less” realm of “cyberspace,” a realm “where we’re all connected but no one’s in charge,” while at the same time we’ve achieved better than ever ability to act with god-like power to control and manipulate our environment. He chided the essential disconnect of powerful forces that act with supreme mastery over technology but with no grounding in sociopolitical understanding (specifically naming Mark Zuckerberg) and those who have the inverse problem (the U.S. Congress, in Friedman’s view).

Overall, Friedman’s views are grounded in what he describes as a place of optimism. But the takeaway is more that humanity is currently at a state where it’s overwhelmed on a number of fronts and out of its depth in terms of having a capacity to cope.

In the afternoon, Robert Mazur (longtime undercover agent and the subject of biopic “The Infiltrator”) discussed his experience tracking down and prosecuting money launderers operating more or less with the blessing of large financial institutions, precisely because their systems were designed around incentive systems that encouraged them but didn’t have protections in place to prevent bad actors from taking advantage. Mazur further elaborated that current telecom industry structure actually makes it even easier than ever to launder large sums relatively unchecked. In essence, it was a warning to be mindful of how the products you build can be exploited by the most malicious actors.

Former Information and Privacy Commissioner for Ontario and creator of the concept of “Privacy by Design” Ann Cavoukian came next, decrying the current state of data “centralized in huge honeypots of information,” including Google (her example).

Former Ontario Information and Privacy Commissioner Ann Cavoukian.

This centralization, she noted is a huge risk in terms of presenting opportunities for tracking, misuse, leaks and more. It’s “taking away our agency as individuals,” she said, and the solution is moving to true decentralization of data.

“Privacy […] is freedom, and is about you making decisions relating to your personal information; not the state, not corporations — you,” she said. “It’s not about secrecy, it’s about control [and] privacy is a necessary condition for societal well-being.”

Cavoukian wrapped her talk by noting the sheer volume of privacy breaches that have leaked consumer information to date, and about the importance of encryption in keeping this safe. Overall, her talk was a blueprint for tech companies looking to incorporate data privacy and good stewardship into the DNA of their products from day one.

Kelsey Leonard, Tribal Co-Lead on the Mid-Atlantic Regional Planning Body of the U.S. National Ocean Council, provided a talk on the implications of digital rights and the continued digital divide as it pertains to Indigenous communities globally. Leonard pointed out that Indigenous nations in North America are the least connected in the world, something she noted continues the ongoing colonialism, and even can potentially contribute to “ongoing genocide of Indigenous peoples.”

Kelsey Leonard, advocate for Indigenous Data Governance and Sovereignty, speaks at True North 2019 in Waterloo.

Indigenous people are also systematically disenfranchised from data ownership and data control, by virtue of their being left out of advanced STEM education and formalized degrees, she said. Leonard also noted that platforms contain reinforcement of what she calls “digital colonialism,” in that Indigenous names are often flagged as fake by algorithms designed to enforce real-name policies, and Indigenous languages are often mistranslated (specifically as Estonian, she said).

This worsens existing Indigenous language and culture erasure. Leonard said a language is lost every two weeks on average, according to recent research. What’s required then is to add protection measures specific to digital platforms to help counter this institutional digital colonization and enforce Indigenous Sovereign Data.

To close day one, Recode founder and legendary Silicon Valley reporter Kara Swisher summarized a lot of her recent work as a New York Times columnist. Basically, that means she called on the industry to stop messing around and start fixing stuff.

Kara Swisher speaks at the True North 2019 conference in Waterloo, Ontario.

Swisher said we’re coming to a “reckoning” for tech in terms of media coverage, and the overwhelmingly positive coverage it’s received over the past many years. She emphasized that we’re only at the beginning of the impact technology will have on society, and laid out a number of current areas of innovation and investment that will continue to upset societal norms, including autonomous driving, artificial intelligence and more.

Regarding media specifically, Swisher noted that she marked a significant shift when BuzzFeed started A/B testing to amplify and extend the attention-capture possible around specific “news” items, citing the famous Katy Perry Left Shark incident of 2015. This, combined with our “continuous partial attention,” which is tied to our inability to totally disengage from our smartphones, is combining to have effects on how we think and work in the world, Swisher said.

She added that, today, many of her new big concerns are around AI, and that “everything that can be digitized will be digitized.” Not only that, she continued, but “almost everything can be,” which will be massively disruptive to peoples’ lives, with effects including a future where most people will have a very high number of different jobs over the course of their lives, requiring continuous education and retraining. “We have to think really hard about what good AI is and what problematic AI is,” she said.

Thompson Reuters Foundation CEO Antonio Zappulla at True North 2019 in Waterloo discussed using technology to help fight human trafficking.

Across other stages, too, the themes of technology’s dangers and how to avert it prevailed across programming. Take Some Risk founder Duane Brown gave a talk on opting out of the always-connected lifestyle and becoming “digitally exhausted.” MedStack founder and CEO Balaji Gopalan talked about the risks inherent in dealing with private patient data in healthcare. Other topics included sustainable energy for Africa, using big data to counter human trafficking and ensuring we steer away from encouraging consumerization in this generation of connected kids.

The event’s central theme was the deceptively simple (and frankly over-uttered) phrase “tech for good,” but the programming and content revealed a level of sophistication and sincerity on the topic that exceeds the low bar often found in tech industry marketing materials and staged events. Overall, it felt introspective, contrite and contemplative — a self-reflection from a community genuine about shoring up its ethical shortcomings. In other words, refreshing.

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Here is where CEOs of heavily funded startups went to school

CEOs of funded startups tend to be a well-educated bunch, at least when it comes to university degrees.

Yes, it’s true college dropouts like Mark Zuckerberg and Bill Gates can still do well. But Crunchbase data shows that most startup chief executives have an advanced degree, commonly from a well-known and prestigious university.

Earlier this month, Crunchbase News looked at U.S. universities with strong track records for graduating future CEOs of funded companies. This unearthed some findings that, while interesting, were not especially surprising. Stanford and Harvard topped the list, and graduates of top-ranked business schools were particularly well-represented.

In this next installment of our CEO series, we narrowed the data set. Specifically, we looked at CEOs of U.S. companies funded in the past three years that have raised at least $100 million in total venture financing. Our intent was to see whether educational backgrounds of unicorn and near-unicorn leaders differ markedly from the broad startup CEO population.

Sort of, but not really

Here’s the broad takeaway of our analysis: Most CEOs of well-funded startups do have degrees from prestigious universities, and there are a lot of Harvard and Stanford grads. However, chief executives of the companies in our current data set are, educationally speaking, a pretty diverse bunch with degrees from multiple continents and all regions of the U.S.

In total, our data set includes 193 private U.S. companies that raised $100 million or more and closed a VC round in the past three years. In the chart below, we look at the universities most commonly attended by their CEOs:1

The rankings aren’t hugely different from the broader population of funded U.S. startups. In that data set, we also found Harvard and Stanford vying for the top slots, followed mostly by Ivy League schools and major research universities.

For heavily funded startups, we also found a high proportion of business school degrees. All of the University of Pennsylvania alum on the list attended its Wharton School of Business. More than half of Harvard-affiliated grads attended its business school. MBAs were a popular credential among other schools on the list that offer the degree.

Where the most heavily funded startup CEOs studied

When it comes to the most heavily funded startups, the degree mix gets quirkier. That makes sense, given that we looked at just 20 companies.

In the chart below, we look at alumni affiliations for CEOs of these companies, all of which have raised hundreds of millions or billions in venture and growth financing:

One surprise finding from the U.S. startup data set was the prevalence of Canadian university grads. Three CEOs on the list are alums of the University of Waterloo . Others attended multiple well-known universities. The list also offers fresh proof that it’s not necessary to graduate from college to raise billions. WeWork CEO Adam Neumann just finished his degree last year, 15 years after he started. That didn’t stop the co-working giant from securing more than $7 billion in venture and growth financing.

  1. Several CEOs attended more than one university on the list.

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