Mercata

About Mercata

Mercata operates as an online ordering and delivery platform tailored for independent grocery stores and specialty food retailers. Founded in 2015 by Bobby Brannigan, the company was born from his firsthand experience with the technological and marketing disadvantages faced by independent grocers, including his family's own grocery store in Brooklyn, New York. Brannigan, who previously started an online textbook company in college, saw an opportunity to apply his tech background to modernize his father's store, which was operating without a point-of-sale system or website.

The company functions on a hybrid e-commerce and marketplace business model, providing a platform for local stores to list and sell their products online. Mercata manages the online ordering process, customer service, and delivery logistics, enabling merchants to compete with larger retail chains. Its client base consists of smaller, local, and independent grocers who lack the resources to develop their own extensive online shopping infrastructure. The platform is designed to onboard new grocers quickly, in some cases within 24 hours. Revenue is generated through commission fees on each transaction, a subscription service called Mercato Green for unlimited free deliveries, and advertising fees from vendors.

Mercata's service offers consumers access to a curated selection of fresh produce, meats, and specialty foods from local merchants, which can be delivered within about an hour. The platform has expanded to include features that support community needs, such as the 'Thriving Communities' program, which addresses food deserts, and accepts various payment options, including SNAP/EBT. The company experienced significant growth during the COVID-19 pandemic, with merchant sales surging by 1,300% in 2020. This growth was supported by a $26 million Series A funding round in April 2021, led by Velvet Sea Ventures, with participation from existing investors like Greycroft and Loeb.nyc. As of 2023, the company reported being profitable and serves grocers across 48 states.