Tyltgo: Empowering Small Businesses with On-Demand Delivery

Tyltgo is dedicated to leveling the playing field for restaurants and small businesses, enabling them to effectively compete with established same-day delivery services like Amazon and HelloFresh. This Canadian company, having recently secured CAD $2.3 million (USD $1.8 million) in seed funding, functions as a white-label solution, similar to Uber Eats, offering businesses a branded on-demand delivery platform connected to gig economy couriers.

A Customized Post-Purchase Experience

Co-founder and CEO Jaden Pereira describes Tyltgo as a company focused on the post-purchase journey. Customers complete their orders directly on the merchant’s website, maintaining brand interaction throughout the entire process. All messaging, tracking, notifications, and the delivery itself are branded for the merchant, while being technically powered by Tyltgo’s infrastructure.

The Rise of Same-Day Delivery Expectations

The shift towards expecting same-day deliveries was accelerated by pandemic-related lockdowns and the widespread adoption of e-commerce platforms like Amazon. Tyltgo identified that this expectation created a disadvantage for smaller businesses lacking the resources to provide such rapid service, and sought to address this disparity through innovative technology and a network of gig economy couriers.

From Side Hustle to B2B Focus

Founded in July 2018 by Pereira, then a 22-year-old student at the University of Waterloo, alongside developer Aaron Paul, the company initially began as a consumer-facing service on Shopify. Pereira initially handled deliveries personally as a supplementary income source. However, in October 2019, the focus shifted to a B2B model, recognizing that merchants faced significant challenges in offering affordable, high-quality same-day delivery.

Significant Revenue Growth and Team Expansion

Tyltgo experienced a remarkable 2,000% revenue increase between December 2019 and December 2020, according to Pereira. The company expanded from a team of two to nine employees during 2020, including key hires like Joe Rhew, formerly head of marketplace operations at Uber Eats Canada, and Adnan Ali, a former director of engineering at Financeit.

Future Growth and Expansion Plans

Backed by investment from TI Platform Management, Y Combinator, and angel investor Charles Songhurst, Tyltgo anticipates a further 1,500% revenue growth in 2021. The company intends to expand its team, develop an API and app-based platform, and onboard 100 additional merchants throughout Ontario.

Targeting the Meal Kit Delivery Market

While initially focused on florists and pharmacies, Tyltgo’s trajectory shifted towards the restaurant industry, specifically targeting meal kit deliveries. The increasing popularity of meal kits, offering pre-portioned ingredients and cooking instructions, presented a significant opportunity.

The Growing Meal Kit Industry

The global meal kit delivery services market is projected to reach nearly $20 billion by 2027, with heat-and-eat options representing a substantial portion of this market. Tyltgo is strategically positioned to capitalize on this growth, having already established partnerships with restaurants such as General Assembly Pizza and Crafty Ramen, as well as traditional meal kit providers from grocery stores and organic farms.

Navigating Perishability and Logistics

Operating within the “quasi-perishable space” of flowers and meal kits presents both challenges and advantages for Tyltgo. The company assesses the perishability window of each delivery and matches it with a suitable courier. Furthermore, Tyltgo utilizes an advanced fleet management system to assign deliveries based on the courier’s vehicle capacity.

Addressing Logistical Complexities

Pereira acknowledges that matching perishability windows while avoiding product damage was a significant early hurdle. Successfully managing factors like traffic and weather conditions, while adhering to delivery timelines, required careful planning and execution. The company faced the challenge of completing 35 deliveries within an eight-hour window.

Maintaining Service Quality in the Gig Economy

Ensuring consistently high-quality service while relying on gig economy couriers is another key challenge. Tyltgo prioritizes selecting reliable couriers, even if it means slower growth, and is committed to maintaining a low error rate. The company will not onboard a new merchant unless it is confident in its ability to meet delivery expectations.

Scalability and Long-Term Vision

While the focus on meal kits may drive scalability, the underlying platform has broader potential. Pereira envisions Tyltgo becoming an integral part of the post-purchase experience for all retail categories, expanding beyond delivery to encompass customer service, branding, and transaction processing.

Empowering Small Retailers

“Our primary motivation is to empower smaller, brick-and-mortar retailers who lack the resources to compete with industry giants like Amazon,” Pereira stated. “We aim to provide them with the tools they need to succeed in the modern marketplace.”