Congratulations to SkipTheDishes on the sale of the company to JustEat (LON: JE) for upfront consideration of C$110M (and up to C$90M more if strict financial targets are met). We’re thrilled for co-founders Josh Simair, Andrew Chau, Chris Simair, Jeff Adamson, Dan Simair and the entire Skip team as they look ahead to expand the business to more hungry cities throughout North America, now with the backing of a £4B publicly-held market leader in food delivery.
Skip is a model of efficient entrepreneurship. They hired dozens of employees, built software and were live in a bunch of cities before taking seed capital. They bootstrapped the business and used revenue from customers to fund their growth. In a time where startups compete to serve the trendiest cold brews, I had to argue with Josh to upgrade the drip-style diner coffee! This team truly embodies the start-up spirit.
Skip, like many investments, wasn’t obvious. It was competing in a highly financed market — food delivery — against well-fed competitors Doordash, Grubhub, and Postmates. Their model relied on a complex three-sided marketplace of restaurants, couriers, and customers. The company is based in Winnipeg whose airport offers no direct flights to NYC or SF.
However, Skip was shrewd in building the business given their context. They didn’t focus on the big cities, instead the company focused on secondary markets, like Winnipeg, Mississauga, and Columbus. They built real technology to track couriers and the logistics of orders across larger distances than the dense cities that their competitors serve.
Skip is a reminder that great opportunities can come from anywhere and that rules of thumbs in investing are meant to be broken. As some of their better-funded competition has struggled, I’m reminded that execution is a game of inches — getting the little things right is critical. The devil is truly in the details.
I am grateful to have been partners with Josh, Chris, Andrew, Jeff, and Dan as well as lead investor Matt Golden of Golden Venture Partners who played a huge role. Also thank you to co-investors Felicis Ventures and FJ Labs.