A Portland-based food and drink delivery service has acquired a similar company in Washington state, continuing its expansion into other states.

CarHop, known for not charging restaurants the fees most other services do, recently purchased Dashing Drivers in Wenatchee, Washington, for an undisclosed price.

The Maine company was founded in 2019 and operates in seven cities in the state as well as parts of Greater Boston, Alabama and Kentucky.

CarHop Founder Thomas Brems makes a beer delivery in 2020. Shawn Patrick Ouellette/Staff Photographer

Drivers for the Washington service will continue to operate under the Dashing Drivers brand. But CarHop plans to change things up by eliminating restaurant commissions to align with its mission.

The company says it doesn’t collect fees from restaurants because it wants to give them the full benefit of their food sales and not place a financial burden on owners.

“When restaurants are forced to surrender a significant portion of their profits to third-party delivery services, it can undermine their financial stability and limit their ability to invest in quality ingredients, pay fair wages and maintain their operations,” CarHop spokesperson Ben Moore said. “We believe that when local businesses succeed, the entire community benefits, and we are proud to be a driving force in making this vision a reality.”

CEO Thomas Brems said the recent acquisition also “honors the legacy” of co-founder Matt Murphy – who died unexpectedly this week – and “our shared dream of revolutionizing the food-and-drink delivery industry.”  

CarHop makes its money by charging customers a delivery fee, which it has said it splits with the drivers. That fee ranges from around $7 to $15 in the Portland area, depending on the restaurant and how far a driver has to travel to deliver the order.

Portland’s other local delivery service, called 2DineIn, offers similar prices through a different approach – a cheaper delivery fee that goes to the driver and an unspecified service fee. 2DineIn does not state online whether it charges restaurants for participating.

National competitors like DoorDash, Grubhub and Uber Eats typically have very low delivery fees – often waving those costs altogether – but higher food prices and service fees.

CarHop also has set itself apart through its partnerships with local businesses, which must sign on to offer delivery through the company.

In 2021, the Press Herald reported that local restaurant owners were growing increasingly upset with national delivery companies that list their businesses without their consent. And owners have said that these unapproved listings – often with incorrect information, higher prices and long wait times – have upset customers and negatively impacted their businesses.

At the time, two Portland city councilors said they drafted regulations that would require national delivery companies to have formal agreements with local businesses and limit the fees they can charge.

It is unclear if the council ever approved those regulations.

CarHop took off during the pandemic when the government required people to socially distance and many restaurants pivoted to takeout only. After launching in Portland, the company gradually began expanding its services across Maine. Hungry diners can now order food from CarHop in Biddeford, Saco, Brunswick, Bangor, Kennebunk and Wells.

It started extending into other states in 2022, offering delivery in Massachusetts around Cambridge and Somerville. In March, CarHop purchased three delivery services in central Kentucky.

In total, CarHop now delivers for 134 restaurants, breweries, liquor stores and bakeries across Maine; seven in the Boston area; 81 in Kentucky; 32 in Alabama; and now 55 in Washington.

Moore said that CarHop is looking into other companies to buy and licensing deals elsewhere in America.

Copy the Story Link

« Previous

Next »