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Clustertruck founder Chris Baggott shows Revolution CEO Steve Case how the food-delivery software works at the company's headquarters in Indianapolis. Photo / Patrick Gavin

INDIANAPOLIS — In 2013, software industry veteran Chris Baggott sold two companies he helped start. Salesforce bought ExactTarget for $2.5 billion, and Oracle bought Compendium, a business blogging software program. His newest software company, called Clustertruck, aims to disrupt the third-party food delivery companies like UberEats and GrubHub.

How it works: Unlike other food delivery services that pick up orders at restaurants all over town and deliver them to your door, Clustertruck owns the whole operation. Its kitchen makes 160 items, from pad Thai to pizza, and employs its own delivery team. Deliveries are free and are made within 21 minutes, Baggott said.

Middle America strategy: Clustertruck started in Indianapolis and opened in Columbus last week. It plans to be in Cleveland, Kansas City, Denver and Charlotte by the end of the year. Focusing on Midwestern states is the same expansion strategy Baggott used in building his other software companies: "While everyone else is killing themselves to conquer New York and San Francisco, we're focusing on the rest of the country," he said.

  • Baggott says Clustertruck has low driver turnover while competitors like Doordash spend millions on recruiting drivers. And drivers make good money — as much as $100,000 a year in some cases.
  • He developed the idea after meeting a Lyft driver who helped him to see the pitfalls of on-demand services. Many of his drivers are former Uber and Lyft drivers.
  • "I said, let's design a system that can be the best gig economy job in America," he said "We've designed software and an algorithm that maximizes revenue" and allows high volume food production and delivery.
  • During the 17 months since it opened with one kitchen, Baggott says it's "put over a million dollars in the pockets of 38 drivers."

The big question: Will consumers like the food enough to give up meals from their favorite restaurants? Other third-party delivery services are banking on other restaurants' loyal customers who are willing to pay to have it delivered. Clustertruck, on the other hand, has to make a variety of food hoping to suit all tastes.

Go deeper

Jack Dorsey to step down as Twitter CEO

Photo: Joe Raedle/Getty Images

Jack Dorsey will step down as CEO of Twitter, the company announced Monday. He will be succeeded by CTO Parag Agrawal.

The big picture: Dorsey is also the CEO of financial payments company Square, which he co-founded in 2009, and has become a crypto evangelist in recent years.

Tracking the pandemic's unequal impact

Expand chart
Data: Morning Consult/Axios; Chart: Will Chase/Axios

The pandemic was bound to hit the most economically vulnerable among us the hardest. New polling data from Morning Consult, out this morning, shows the degree to which those difficulties were more concentrated among people of color.

Catch up quick: The Morning Consult/Axios Inequality Index has tracked the economic experience of adults in three wage groups since May 2020. We began publishing the findings in May of this year, and six months in, we’re slicing the data a little differently — and looking at inequality between ethnicities.

3 hours ago - Health

WHO says Omicron poses "very high" risk

World Health Organization Director-General Tedros Adhanom Ghebreyesus speaking in Geneva in October. Photo: Fabrice Coffrini/AFP via Getty Images

The World Health Organization said Monday in a new risk assessment that it believes the COVID-19 Omicron variant poses a "very high" risk to the globe because it may be more transmissible than other strains of the virus.

Why it matters: Though the WHO acknowledged there are still many uncertainties associated with the variant, the agency said it believes the likelihood of potential further spread of Omicron around the world is "high."