Online Chow
San Francisco-based Cybermeals, an online restaurant takeout and delivery ordering service, will announce today) that it has received a second helping of venture financing, worth $25 million, and that it will launch a major advertising push, including changing its name to Food.com (https://www.food.com).
The 3-year-old firm said the financing, on top of $10 million it received last May, will tide the company over until it reaches profitability, which President and Chief Executive Frank Rich said will come in the third quarter of next year.
For the record:
12:00 a.m. March 25, 1999 For the Record
Los Angeles Times Thursday March 25, 1999 Home Edition Business Part C Page 3 Financial Desk 1 inches; 16 words Type of Material: Correction
Restaurant official--Food.com’s president and chief executive is Rich Frank. A story Monday misidentified him.
Starting this spring, the company will begin to market heavily in 10 metropolitan areas, including Los Angeles, Rich said.
The company hopes to capitalize both on the growth of Internet use and Americans’ propensity for eating out. Last year, more than half of all restaurant meals were takeout or delivery, Rich said.
Cybermeals has more than 11,000 restaurants and 450,000 customers signed up for its service. The company receives a setup fee as well as a monthly maintenance fee from each restaurant and 5% for every online transaction. The company also gets revenue from advertising and sponsorship on its site.
