Participated · Equity · Feb 2020

Joe Coffee operates a mobile-ordering network and consumer app (with a web interface) that lets customers order from nearby independent coffee shops and earn loyalty points across the network. On the merchant side it supplies signage, a barista-facing interface to process orders and set deals, plus reporting and analytics. The company takes a 9% fee per order, which includes credit card processing fees. Joe initially focused on Seattle, supporting around 300 coffee shops there, then expanded to other regions and opened nationwide in January 2020; it now works with more than 1,000 shops across the U.S. Usage surged during the pandemic, with sales volume increasing roughly 20x since March and average tips rising over 200%. To scale with that demand the company has raised an additional $1.3M in a second seed round after previously raising $2.2M; the new capital is intended to help more coffee shops take mobile orders and expand the network. Joe Coffee is a Seattle-based startup that has built a mobile order and rewards app for independent coffee shops. Its platform has attracted more than 500 indie coffee shop partners and the company employs about 10 people. Joe Coffee plans to extend its loyalty solution to in-person transactions and will unveil an in-person payment solution for shop owners to replace legacy punch-card programs. A beta of the new technology will roll out in May with about 12 partners, and the company plans an aggressive launch in June. Gravity Payments invested $500,000 in the recent round, and the startup has raised $2.1 million to date. The company will work closely with Gravity on go-to-market efforts, tech support and merchant experience to help indie shops compete with larger players such as Square. Joe Coffee provides a mobile ordering and rewards platform used by independent and regional coffee retailers to streamline pickup and loyalty. The app is live in Seattle with more than 200 locations on the network and a pace to double that by the end of October, including regional chains Caffe Ladro and Top Pot Doughnuts. The company emphasizes low-latency pickup reliability — targeting a 3–7 minute window from order to pickup — and has built backend monitoring to track end-user experience at the store level in real time. Product development is adding gamification, targeted re-engagement, share-worthy elements, and data-driven personalization. Financially, Joe Coffee has raised $1.7 million to date. New funds will be used to bolster sales and support staff to keep up with Seattle demand and to support expansion to Los Angeles. Joe Coffee, launched in 2014 and based in Seattle, provides a mobile ordering and rewards platform that lets customers pre-order, pay on mobile, and earn network-wide rewards redeemable at partner shops. The platform tracks purchases and delivers a buy-10-get-one-free style rewards program while partners manage Joe orders through a provided tablet. The company serves roughly 300 independent coffee shop partners, including about 150 in Seattle. Joe charges consumers a 35-cent convenience fee per transaction and charges shops an 8% fee on purchases made through its system. The eight-person team expects to triple in size, is moving to larger offices in August, and plans to expand into a second large West Coast city. Competitors named in the article include Cups and JoJo.