Consolidation continues to lead the world of startups on demand – literally and figuratively. In the latest development, Vetted, a start-up specializing in veterinary services, is acquiring VetPronto, an almost identical peer.
A few months ago we covered the launch of Vetted, an on-demand veterinary start-up that raised $ 3.3 million from investors like Amplify LA, Sterling.VC and Foundation Capital . At the time, the company explained that in terms of expansion, they focused on the depth rather than the width – that is why they only operate on the depths of the site. ;in Los Angeles.
But this is changing now, as the start-up acquires VetPronto, another on-demand veterinary startup that lives in San Francisco, San Diego, Atlanta, Chicago, New York, and Baltimore.
Launched in Y Combinator's Winter 2015 class, VetPronto raised approximately $ 1.3 million to fuel its national growth to date. Although a sale price was not disclosed, the transaction was a mixture of cash and equity, the cash portion being a little less than the $ 3.3 million that Vetted lifted during the summer.
TechCrunch readers know that consolidation (and failure) is not new in the on-demand space. In fact, there is a fairly predictable trend that we have seen play on countless occasions. First, a segment of the industry on demand becomes hot (like carpool or cleaning companies). Then a ton of business springs up to try to dominate the space, and then over the next few years, they go bankrupt or consolidate. It's almost like clockwork at this point.
That is why it is not surprising that we observe the same thing in the space reserved for pets. On demand, it's hard until you reach the scale, especially when you add highly paid employees like veterinarians. Of course, it's important to remember that this is not always a bad thing – sometimes the whole thing is bigger than the sum of its parts – especially when any of these parties can help you do it evolve more quickly.
Example: This agreement will double Vetted's customer base to approximately 10,000 customers. At first the two services will remain separate, at least from the customer's point of view, but that will change soon as Vetted consolidates its operations under its brand.