Exclusive: The next wave of AI drive-thrus is here—and a16z and Arc think it finally works
Arc, a voice AI startup, has raised $10.76 million in seed funding to optimize drive-thru operations. The company aims to improve order accuracy and upselling capabilities at fast-food chains, addressing challenges faced by previous AI implementations. With a significant market opportunity, Arc is leveraging advanced AI models to enhance customer experience and business performance.
- ▪Arc has raised $10.76 million in seed funding led by Andreessen Horowitz.
- ▪The company is currently working with two major fast-food chains that have hundreds of locations.
- ▪Drive-thrus account for approximately 70 to 75% of quick-service restaurant revenue in the U.S.
- ▪Arc claims to achieve over 95% order accuracy and a 4% to 5% increase in average customer bills through smarter upselling.
- ▪The AI-in-QSR market is projected to reach $12 billion by 2034.
Opening excerpt (first ~120 words) tap to expand
Mike MacLennan’s idea of market research as the CEO of a drive-thru AI company is loitering at Burger King. His company’s first dollar was actually given to him by a group of elderly women who believed he was panhandling at the fast food joint. Recommended Video His company, Arc, is a voice AI startup that takes orders and optimizes business performance at drive-thrus. MacLennan and co-founder Ali Hussain—both Square and Cash App veterans, where they built payment infrastructure—have raised $10.76 million seed funding, Fortune learned exclusively. Andreessen Horowitz led the round. The company is already working with two major fast-food chains, each with hundreds of locations. Arc’s market is enormous.
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