A young restaurant supplies business based in Canada, with much of its business coming from the U.S., had a banner year in 2022.
The chief reasons, says Steer Technologies Inc., based in Scarborough, Ontario, are its fast-growing B2B marketplace and a digital-first approach to doing business. For the recently ended third quarter, Steer, which says about 93 of all orders placed in October were done online, grew sales 122% to about $12 million (CAD) (US$8.9 million).
“Strong demand for our restaurant supply has contributed to the impressive 122% growth in revenue between Q3 2021 and Q3 2022,” says Steer CEO Suman Pushparajah. “It is gratifying to see the positive impact our platform has had on the North American restaurant supply industry.”
Just-in-time restaurant supplies
Launched in 2021, Steer operates an online platform focusing on the sale and delivery of restaurant industry supply items on a just-in-time basis. The company says its restaurant supply business uses a proprietary technology that delivers warehouse and delivery operations online. “We are very proud of the success of the Steer Restaurant Supply Business in such a short amount of time.” Pushparajah says.
Steer, which trades on the Toronto stock exchange, for the second quarter ended Nov. 30 posted revenue of $14.3 million (US$10.6 million), an increase of 89% from revenue of $7.8 million (US$5.8 million) in the prior year. Net loss was $7.36 million (US$5.5 million), versus $9.93 million (US$7.4 million), in Q3 of 2021.
For the second quarter, Steer’s B2B marketplaces sales accounted $12.25 million (US$9.02 million), or 68% of total revenue, compared with $7.81 million (US$5.75 million), or 70.6%, of total sales in the prior year.
“Q3 2022 has been a quarter of significant growth for Steer’s B2B Marketplace division focused on the sale and delivery of various restaurant industry supply items as well as its flagship electric vehicle subscription platform,” the company says.
Steer says its corporate operations generally fall into two categories: subscription-based offerings led by its flagship electric vehicle subscription business, Steer EV; and on-demand services incorporating delivery, restaurant supply business, delivery-as-a-service (DaaS) and rideshare businesses.
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