Posts Tagged “drive-thru”
It’s been a long time since McDonald’s made a major acquisition. Twenty years actually, and their acquisition of Isreali-tech startup Dynamic Yield may be a shrewd move to buy the proprietary AI technology and keep it from their competitor’s reach.
What follows was excerpted and originally reported by NoCamels.com.
McDonald’s is set to acquire Israeli company Dynamic Yield, a market leader in customer personalization and decision logic technology, the two companies announced on Monday.
The financial terms of the deal were not disclosed but TechCrunch reported that “a source with knowledge” said the agreement was valued at over $300 million and is McDonald’s largest acquisition in 20 years.
Founded in 2011 by Israeli entrepreneurs Liad Agmon and Omri Mendellevich, the New York-headquartered company’s AI-powered omnichannel personalization engine helps product managers, and engineers build personalization campaigns that deliver individualized experiences at every customer touchpoint (online, mobile apps, email, kiosks, IoT, and call centers).
Dynamic Yield says its platform’s data management capabilities “provide for a unified view of the customer, allowing the rapid and scalable creation of highly targeted digital interactions. The company has over 300 clients that have included IKEA, URBN Brands, and Stitch Fix.
McDonald’s said in a statement that it will use Dynamic Yield’s technology “to provide an even more personalized customer experience by varying outdoor digital Drive Thru menu displays to show food based on time of day, weather, current restaurant traffic and trending menu items.” The tech can also suggest and display additional items based on customer current selections.
“Dynamic Yield’s ability to meet McDonald’s customer needs, coupled with their commitment to grow capabilities around ever-changing consumer trends and evolving marketing technologies, allows for the continued advancement and elevation of the McDonald’s customer experience with technology and innovation,” the fast-food giant said in the statement.
Steve Easterbrook, president and CEO of McDonald’s Corporation, said “technology is a critical element of our Velocity Growth Plan, enhancing the experience for our customers by providing greater convenience on their terms. With this acquisition, we’re expanding both our ability to increase the role technology and data will play in our future and the speed with which we’ll be able to implement our vision of creating more personalized experiences for our customers.
Agmon, who serves as Dynamic Yield’s CEO said: “We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalization a core activity. We’re thrilled to be joining an iconic global brand such as McDonald’s and are excited to innovate in ways that have a real impact on people’s daily lives.”
According to the agreement, Dynamic Yield will remain a stand-alone company and employees will continue to operate out of its offices across the world, including Berlin, Singapore, Moscow, Paris, London, NY, and Tel Aviv. Dynamic Yield will also continue to serve their current, and attract future, clients.
McDonald’s said upon the completion of the deal, it will become sole owner of Dynamic Yield, and will continue to invest in the company’s “core personalization product and world-class teams.”
Dynamic Yield previously raised some $83 million from investors such as Viola Growth, an Israeli-based technology growth capital fund, Innovation Endeavors, Bessemer Venture Partners, Vertex Ventures Israel, and Union Tech Ventures.