CloudKitchens

CloudKitchens was established in 2016 by entrepreneurs Diego Berdakin and Sky Dayton, with its first facility in Los Angeles, California.{{Cite web |last=Bolich |first=Sophie |date=2023-07-26 |title=Paper Table Delivered Meals, Not Results, Former Tenants Charge |url=https://urbanmilwaukee.com/2023/07/26/paper-table-delivered-meals-not-results-former-tenants-charge/ |url-status=live |archive-url=https://archive.today/20250512151936/https://urbanmilwaukee.com/2023/07/26/paper-table-delivered-meals-not-results-former-tenants-charge/ |archive-date=2025-05-12 |access-date=2025-05-28 |website=Urban Milwaukee |language=en}}{{cite web |date=2020-04-06 |title=Amidst COVID-19, CloudKitchens Redefines Restaurants As We Know It |url=https://www.hngry.tv/articles/amidst-covid-19-cloudkitchens-redefines-restaurants-as-we-know-it/ |access-date=2025-05-28 |website=HNGRY}} In 2018, Travis Kalanick, cofounder of Uber, acquired a controlling stake in CloudKitchens' parent company, City Storage Systems, for approximately $150 million and became CEO.{{cite web |last1=Bhuiyan |first1=Johana |last2=Schleifer |first2=Theodore |date=March 20, 2018 |title=Travis Kalanick is buying a new company that rehabs real estate and will run it as CEO |url=https://www.vox.com/2018/3/20/17145032/travis-kalanick-uber-new-job-ceo-real-estate-startup-city-storage-systems |website=Vox}}{{Cite web |last=Davis |first=Dominic-Madori Davis |last2=O'Kane |first2=Sean |date=2024-09-24 |title=Exclusive: From dinners with Travis Kalanick to fired after maternity leave: one of CloudKitchens’ earliest employees is suing |url=https://techcrunch.com/2024/09/24/travis-kalanick-cloudkitchens-lawsuit-wrongful-termination-pregnant/ |url-status=live |archive-url=https://archive.today/20250512151628/https://techcrunch.com/2024/09/24/travis-kalanick-cloudkitchens-lawsuit-wrongful-termination-pregnant/ |archive-date=2025-05-12 |access-date= |website=TechCrunch |language=en-US}} John Curran, a former executive at Amazon, was appointed Chief Financial Officer (CFO) in 2021.{{cite web |last=Morris |first=Meghan |date=January 5, 2022 |title=Travis Kalanick's food startup CloudKitchens has tripled its valuation to $15 billion and tapped an Amazon veteran as CFO |url=https://www.businessinsider.com/travis-kalanick-cloudkitchens-triples-valuation-to-15-billion-2021-11 |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20220826224537/https://www.businessinsider.com/travis-kalanick-cloudkitchens-triples-valuation-to-15-billion-2021-11 |archive-date=August 26, 2022 |work=Insider}}

The company secured significant funding, including $400 million from Saudi Arabia's Public Investment Fund in 2019 and $850 million in 2021 in a round that included Microsoft.{{Cite web |last=Fleischmann |first=Isabela |date=2022-09-08 |title=Uber Founder Grows CloudKitchens in Brazil with Capital Boost from Microsoft |url=https://www.bloomberglinea.com/english/uber-founder-grows-cloudkitchens-in-brazil-with-capital-boost-from-microsoft/ |url-status=live |archive-url=https://archive.today/20250512155247/https://www.bloomberglinea.com/english/uber-founder-grows-cloudkitchens-in-brazil-with-capital-boost-from-microsoft/ |archive-date=2025-05-12 |access-date=2025-05-26 |website=Bloomberg Línea |language=en-US}}{{cite web |last1=Lee |first1=Dave |last2=Bradshaw |first2=Tim |date=September 7, 2022 |title=Microsoft invests in Travis Kalanick's CloudKitchens start-up |url=https://www.ft.com/content/5a768a67-1d0c-4c8a-9f14-de5ba06432ee |work=Financial Times}} By 2019, the company was valued at approximately $5 billion, growing to an estimated $15 billion by 2021.

CloudKitchens expanded to multiple countries, acquiring London-based FoodStars in 2019, followed by acquisitions in Latin America including Mexico-based Nano and Colombian company Cocinas Ocultas.{{Cite web |last1=Winkler |first1=Rolfe |last2=Jones |first2=Rory |date=7 November 2019 |title=Meet Travis Kalanick’s Secret Startup, CloudKitchens |url=https://www.wsj.com/articles/meet-travis-kalanicks-secret-startup-cloudkitchens-11573122602 |access-date=2025-05-28 |work=WSJ}}{{Cite news |last=Feld |first=Olivia |date=2019-03-26 |title=Travis Kalanick’s new venture buys UK ‘dark kitchens’ business |url=https://www.telegraph.co.uk/technology/2019/03/26/travis-kalanicks-new-venture-buys-uk-dark-kitchens-business/ |url-status=live |archive-url=https://archive.today/20250512100606/https://www.telegraph.co.uk/technology/2019/03/26/travis-kalanicks-new-venture-buys-uk-dark-kitchens-business/ |archive-date=2025-05-12 |access-date=2025-05-28 |work=The Telegraph |language=en-GB |issn=0307-1235}}{{Cite web |last=Pooler |first=Michael |last2=Lee |first2=Dave |date=2022-12-09 |title=Travis Kalanick, construye un nuevo imperio de dark kitchens |url=https://www.milenio.com/negocios/financial-times/travis-kalanick-construye-imperio-dark-kitchens |url-status=live |archive-url=https://archive.today/20250512154241/https://www.milenio.com/negocios/financial-times/travis-kalanick-construye-imperio-dark-kitchens |archive-date=2025-05-12 |access-date=2025-05-28 |website=Grupo Milenio |language=es-MX}} The increase in food delivery during the COVID-19 pandemic also contributed to the company's growth.

By 2022, CloudKitchens had acquired around 40 properties in 24 cities, with expenditures exceeding $130 million, and employed over 4,000 individuals worldwide.{{Cite web |last=Nicoll |first=Alex |date=2020-11-15 |title=How Uber founder Travis Kalanick's real-estate buying frenzy could transform ghost kitchens into a new speciality asset class |url=https://www.businessinsider.com/cloudkitchens-travis-kalanick-ghost-kitchen-real-estate-new-asset-class-2020-11 |url-status=live |archive-url=https://archive.today/20201115033938/https://www.businessinsider.com/cloudkitchens-travis-kalanick-ghost-kitchen-real-estate-new-asset-class-2020-11 |archive-date=2020-11-15 |access-date=2025-05-28 |website=Business Insider |language=en-US}} In different regions, it operates under local brand names, such as Kitchen Central in Brazil.

CloudKitchens maintained limited public communications for several years.{{Cite web |author=Meghan Morris |author2=Allana Akhtar |date=April 23, 2021 |title=Travis Kalanick's startup refused to change 'Happy Ending' branding for an Asian restaurant menu item, saying it wouldn't cave to woke culture, employees said |url=https://www.businessinsider.com/travis-kalanick-cloudkitchens-branding-happy-ending-2021-4 |access-date=2025-05-26 |work=Business Insider}} In 2024, Kalanick broke that trend and publicly presented a concept referred to as the Internet Food Court, aiming for delivery times under 15 minutes through automation.{{cite web |last=Michaels |first=Laura |date=May 8, 2024 |title=Uber Co-founder Travis Kalanick Envisions ‘Internet Food Court’ Future |url=https://foodondemand.com/05082024/uber-co-founder-travis-kalanick-envisions-internet-food-court-future/ |url-status=live |archive-url=https://archive.today/20240509174515/https://foodondemand.com/05082024/uber-co-founder-travis-kalanick-envisions-internet-food-court-future/ |archive-date=2024-05-09 |website=foodondemand}} This system targets dense urban areas and workplace districts.{{Cite web |author=Joe Guszkowski |date=July 2, 2024 |title=Company linked to Travis Kalanick brings bulk restaurant delivery to LA |url=https://www.restaurantbusinessonline.com/technology/company-linked-travis-kalanick-brings-bulk-restaurant-delivery-la}} By this time, CloudKitchens reported operating hundreds of kitchen units in different countries.

In 2022, Kitchen United raised $100 million in an attempt to compete with CloudKitchens.{{cite web|url=https://www.businessinsider.com/how-kitchen-uniteds-ghost-kitchens-stand-out-from-reef-cloudkitchens-2022-1|title="Why Kitchen United's CEO is following a drastically different playbook than ghost kitchen rivals Reef and CloudKitchens as he plans for supercharged growth in 2022"|date=Jan 13, 2022|access-date=2025-05-28|author=Nancy Luna}} Kitchen United eventually exited the competition, selling its real estate assets in late 2023.{{cite web |last1=Canham-Clyne |first1=Aneurin |last2=Moran |first2=Catherine |title=Kitchen United will sell or close all physical units, pivot to software |url=https://www.restaurantdive.com/news/kitchen-united-closes-kroger-units-sells-or-closes-the-rest-software-pivot/700900/ |publisher=Restaurant Dive |access-date=2025-05-28 |date=Nov 28, 2023}}

CloudKitchens constructs private kitchen spaces for rent in shared facilities equipped with necessary cooking equipment and utilities.{{Cite web |last=Marston |first=Jennifer |date=2022-10-13 |title=The next generation of ghost kitchens: 10 new startup concepts around the world |url=https://agfundernews.com/the-next-generation-of-ghost-kitchens-10-new-startup-concepts-around-the-world |url-status=live |archive-url=https://archive.today/20250512174428/https://agfundernews.com/the-next-generation-of-ghost-kitchens-10-new-startup-concepts-around-the-world |archive-date=2025-05-12 |access-date=2025-05-26 |website=AgFunderNews |language=en-US}} Restaurants can lease these kitchens to operate delivery-focused businesses without the cost of a full storefront. Additional services typically include refrigeration, maintenance, janitorial support, and front-of-house staff for pickup orders.

The company's model involves acquiring and converting underused properties into kitchen centers in areas with high delivery demand.{{Cite web |author=Kate Conger |date=December 24, 2019 |title=Uber Founder Travis Kalanick Leaves Board, Severing Last Tie |url=https://www.nytimes.com/2019/12/24/technology/uber-travis-kalanick.html |access-date=2025-05-26 |work=The New York Times}} This approach allows the company to control layout, make technological upgrades, and benefit from potential property value increases.{{Cite web |author=Jonah Engel Bromwich |date=December 24, 2019 |title=Farm to Table? More Like Ghost Kitchen to Sofa |url=https://www.nytimes.com/2019/12/24/style/ghost-kitchen-food-delivery.html |access-date=2025-05-26 |work=The New York Times}}{{Cite web |author= |date=October 20, 2020 |title=Ousted Uber cofounder Travis Kalanick has reportedly spent $130 million on his ghost kitchen startup. Here's what it's like inside one of the secretive locations. |url=https://www.businessinsider.com/cloud-kitchens-travis-kalanick-san-francisco-location-address-pictures-2019-11#as-americans-increasingly-lean-in-to-getting-takeout-the-ghost-kitchen-market-will-likely-get-even-hotter-13 |access-date=2025-05-26 |work=Business Insider}}

Some of CloudKitchens' real estate includes software and robotic automation that reduce operation costs for tenants.{{Cite web |author1=Zhuyi Xue |author2=Suming J. Chen |date=March 19, 2024 |title=Why Our Food Prep Time Prediction Works Better |url=https://techblog.citystoragesystems.com/p/food-prep-time-prediction}}

Otter is a software suite developed by CloudKitchens to consolidate delivery orders from multiple platforms.{{Cite web |author= |date= |title=Try Otter: Integrations |url=https://www.tryotter.com/integrations |access-date=2025-05-26 |work=tryotter.com}}{{Cite web |author=Emilie Friedlander |date=March 30, 2021 |title=The Mysterious Case of the F*cking Good Pizza |url=https://www.vice.com/en/article/qjpgd7/the-mystery-of-fcking-good-pizza-travis-kalanick-cloudkitchens-future-foods-delivery-restaurants |work=vice.com |access-date=2025-05-26}} The system helps restaurant operators manage incoming orders, streamline workflows, and analyze sales data across platforms. Initially created for internal use, Otter is now available to external restaurants and reportedly handled 18% of food delivery transactions in the U.S. as of 2024.{{YouTube|id=8j7lwauJN2s|time=720|title="Travis Kalanick {{!}} All-In Summit 2024"}}

The company has expanded Otter's capabilities to include point-of-sale terminals, kitchen display units, and ordering kiosks.{{Cite web |date=March 1, 2025 |title=A first-of-its-kind multichannel POS system |url=https://www.tryotter.com/}}

• Picnic: An on-site meal service for workplaces using smart food lockers where employees can order from multiple restaurants in a single transaction.{{Cite web |title=Restaurant Business |url=https://www.restaurantbusinessonline.com/ |access-date= |website=Restaurant Business |language=en}}
• Lab 37: A robotics division focusing on automated infrastructure for restaurants, including the "Bowl Builder" that can serve up to 200 meals per hour without human intervention.{{Cite web |author=Lab37 |date=September 20, 2023 |title=Introducing Bowl Builder |url=https://www.lab37.us/hello-world/blog |access-date=March 2, 2025}}{{Cite web |author=Tarun Pondicherry |date=March 2024 |title=Moving Millions of Orders with Robotic Conveyance |url=https://techblog.citystoragesystems.com/p/robotic-order-conveyance |access-date=March 1, 2025}}
• Future Foods: Creates and licenses virtual restaurant brands to operators both inside and outside CloudKitchens facilities.{{Cite web |author=Josh Dzieza |date=June 1, 2021 |title=The Great Wings Rush |url=https://www.theverge.com/2021/6/1/22456930/chicken-wings-delivery-virtual-brands |access-date=June 1, 2021 |work=The Verge}} These virtual brands often resort to provocative names like "Excuse My French Toast" and "Send Noods."{{Cite web |last1=Jones |first1=Rory |last2=Winkler |first2=Rolfe |date=November 7, 2019 |title=Saudis Back Travis Kalanick's New Startup |url=https://www.wsj.com/articles/saudis-back-travis-kalanicks-new-startup-11573122604 |access-date=June 1, 2021 |work=WSJ}} Future Foods handles marketing including food photography.{{Cite web |author=Joe Guszkowski |date=April 1, 2021 |title=How a virtual brand turned a Chicago brunch spot into a bagel concept |url=https://www.restaurantbusinessonline.com/operations/how-virtual-brand-turned-chicago-brunch-spot-bagel-concept |access-date=June 1, 2021 |work=Restaurant Business}} Other novelty brands include Egg the F* Out, B*tch Don't Grill My Cheese,{{Cite web |author=Adrianne Jeffries |date=September 15, 2020 |title=What Are Ghost Kitchens |url=https://themarkup.org/ask-the-markup/2020/09/15/ghost-kitchens-virtual-food-delivery-restaurants |access-date=June 1, 2021 |work=themarkup.org}} Charcootz, LA Breakfast Club, Brooklyn Calzones, Devil's Soul Food, and Phuket I'm Vegan.
• ProFoods: Helps enterprises and restaurant brands find and develop optimal new locations.

• Launch.co: An incubator program in collaboration with Jason Calacanis to support new entrepreneurs in the food delivery industry.

CloudKitchens builds ghost kitchens and other real estate for established chains such as Sweetgreen,{{Cite web |author1=Mike Isaac |author2=David Yaffe-Bellany |date=August 14, 2019 |title=The Rise of the Virtual Restaurant |url=https://www.nytimes.com/2019/08/14/technology/uber-eats-ghost-kitchens.html |access-date=2025-05-28 |work=The New York Times}} The Halal Guys,{{Cite web |author=Graham Rapier |date=7 November 2019 |title=Uber founder Travis Kalanick has reportedly raised $400 million for his next act from Saudi Arabia. He'll be competing directly with his old company. |url=https://www.businessinsider.com/uber-travis-kalanick-saudi-arabia-funding-cloud-kitchens-delivery-2019-11 |access-date=2025-05-28 |work=Business Insider}} Chick-fil-A,{{Cite web |author=Meghan Morris |date=April 22, 2021 |title=Travis Kalanick's stealth $5 billion startup, CloudKitchens, is Uber all over again, ruled by a 'temple of bros,' insiders say |url=https://www.businessinsider.com/travis-kalanicks-cloudkitchens-repeats-uber-playbook-loses-staff-2021-4 |access-date=2025-05-28 |work=Business Insider}} Wendy's, and Burger King.

CloudKitchens has been linked to lobbying activities in the United States through the Digital Restaurant Association (DRA), an organization established in 2022 with support from Tusk Holdings, a consulting and investment firm led by Bradley Tusk, an early investor in Uber and associate of Kalanick.{{Cite news |last=Albergotti |first=Reed |date=2024-05-03 |title=Ex-Uber CEO Travis Kalanick has a new mission in LA |url=https://www.semafor.com/article/05/03/2024/ex-uber-ceo-travis-kalanick-has-a-new-mission-in-la |url-status=live |archive-url=http://web.archive.org/web/20250506074647/https://www.semafor.com/article/05/03/2024/ex-uber-ceo-travis-kalanick-has-a-new-mission-in-la |archive-date=2025-05-06 |access-date=2025-05-28 |language=en}}{{Cite web |last= |date=2022-10-06 |title=Restaurant Lobbying Group Preps Fight Against Delivery Apps |url=https://www.pymnts.com/news/retail/2022/restaurant-lobbying-group-preps-fight-against-delivery-apps/ |url-status=live |archive-url=https://archive.today/20250512171153/https://www.pymnts.com/news/retail/2022/restaurant-lobbying-group-preps-fight-against-delivery-apps/ |archive-date=2025-05-12 |access-date=2025-05-28 |website=PYMNTS.com |language=en-US}} The DRA advocates for regulatory changes affecting the food delivery industry, including legislation that would require third-party delivery platforms such as DoorDash, Uber Eats, and Grubhub to share customer data with restaurants. The organization has also supported proposals to cap the commissions charged by these platforms to restaurant members. Supporters argue that these measures could improve transparency and help restaurants better engage with customers. Critics, however, have raised concerns about consumer privacy and the implications of data sharing with smaller businesses that may lack advanced data protection infrastructure.

{{reflist}}

• {{official website|https://www.cloudkitchens.com/}}

Category:Online food ordering

Category:Companies based in Los Angeles

Category:Privately held companies of the United States

Category:Companies established in 2016

Category:2016 establishments in California

Category:Technology companies of the United States

Category:Real estate companies of the United States