WunWun, the app that lets users order anything from any store or restaurant in New York City or the Hamptons without a delivery charge, is launching in San Francisco.
The idea is that WunWun doesn’t charge users a delivery fee, meaning that if you order a $US5 sandwich and a $US4 tube of chapstick, you’ll pay $US9, plus a tip to the delivery person.
Other on-demand services like PostMates and Instacart charge a delivery fee in addition to the tip.
To make money, WunWun forms partnerships with the stores it serves, getting a discount on items that it doesn’t pass on to its customers. The company also has plans to let stores pay extra to have their products featured in the app.
“We’re expanding with ‘torpedian,’ growth,” WunWun CEO Lee Hnetinka told Business Insider, admitting that his team made the word up. “We’re feeling like we’re on fire.”
WunWun is rolling out its service in two neighborhoods today — SoMa and the Mission — with the rest of the city getting covered by the end of October.
Lee says WunWun decided to choose San Francisco as its second city partially because of all the engineering talent there (right now the company only has an iOS app, no Android). He’s also bluntly confident that WunWun will catch on in the city.
“All the other options suck,” Hnetinka says. “Period.”
Lee’s problem with the other companies is that they charge users a delivery fee. However, it’s worth noting that WunWun will also charge a fee if you need a delivery outside of your “zone” or neighbourhood (it would cost $US5 to get something from SoMa if you lived in the Misison, for example). Competitor PostMates has already launched in more than a dozen cities, including Denver and Vegas, which it just announced today.
Although Lee declined to share revenue numbers, he said that WunWun’s revenue has increased by 400% in the last two months. The company also shared that once a person has used WunWun five times, they generally order every day or every other day, and its top 50 users spent over $US70,000 through WunWun in the last month.