Chicago-based office lunch delivery company Fooda has acquired Peach, a Seattle startup that built software to facilitate meal deliveries for workers.
Peach CEO Nishant Singh confirmed the deal closed in July. It’s part of a recent wave of food delivery acquisitions, including DoorDash’s $3.9 billion purchase of Deliveroo in October and Wonder buying Grubhub last year.
“Fooda, along with a few other companies, approached us in early 2025,” Singh said. “Given the ongoing consolidation in our industry, there was a natural synergy that made Fooda a great fit.”
Terms of the deal were not disclosed. “Ultimately, our board and management decided that joining forces with Fooda was the right next chapter for Peach,” Singh said.
Founded in 2011, Fooda runs workplace food programs in more than 45 markets. Last year Fooda acquired group delivery company Foodsby.
Singh, an ex-Amazon engineer, co-founded Peach in 2014 with his former Amazon colleagues Denis Bellavance and Chenyu Wang. The initial pitch happened at a Startup Weekend event in Seattle.
Peach differentiated from other food delivery services by consolidating multiple lunch orders destined for office buildings. The startup raised money from prominent Seattle VCs and turned a profit in several markets three years after launching.
“While we weren’t able to put Peach on a venture-growth path as quickly as DoorDash or UberEats, we built something special, a sustainable delivery service model that brought the best local restaurant food to workplaces,” Singh said.
The company later went through layoffs and pivoted during the pandemic to focus on its B2B business, finding “new ways to serve employers who wanted to feed their teams,” Singh said.
“That model became profitable and enduring, but we couldn’t return to venture-scale growth,” he said.
Peach raised $16 million total. It had six employees when the deal closed. Singh and COO Prerit Agarwal are staying on to help Peach transition to Fooda. The Peach service will continue under a new name in its existing cities.
Looking ahead, Singh said he’s “going back to what I love, creating value for working professionals and working toward building a B2C brand.”
The acquisition reflects the challenges facing B2B food delivery startups that achieved profitability but couldn’t scale to venture-backed growth expectations, creating an exit path through consolidation with larger competitors rather than continued independence.
Peach’s reduction from a venture-funded startup to just six employees by the acquisition demonstrates the harsh realities of the food delivery market, where unit economics often require massive scale to justify venture capital returns.
The company’s Amazon heritage, with Singh, Bellavance, and Wang all working at the tech giant before founding Peach, represents a common Seattle startup pattern where former employees leverage corporate experience and networks to launch companies serving enterprise customers.
Peach’s pandemic pivot from consumer-focused delivery to B2B employer meal programs proved prescient as remote work decimated office lunch demand, forcing the company to reimagine its business model for hybrid and distributed workforces.
The $16 million in total funding likely provided investors with modest returns or losses rather than the outsized exits venture capitalists seek, illustrating how profitability doesn’t guarantee venture-scale success when growth rates lag competitors.
Fooda’s acquisition strategy, buying Foodsby last year and Peach this year, consolidates the fragmented office lunch delivery market, eliminating competitors while absorbing their customer bases and geographic footprints.
Singh’s stated intention to return to B2C brand-building suggests lessons learned from Peach’s experience that may inform his next venture, potentially applying workplace food delivery insights to consumer-facing products.
