Underground delivery startup Pipedream Labs announced it has raised $13 million in funding. Company CEO Garrett McCurrach disclosed the funding, led by Starship Ventures, with participation from Cortado Ventures, Myelin Ventures, and others, in a post on LinkedIn.

The new capital infusion will primarily be utilized to enhance Pipedream’s “Instant Pickup” service and kick-start the construction of an ambitious middle-mile network in an as-yet-unnamed city. This network aims to facilitate quicker, more cost-effective urban deliveries.

What the company calls its Instant Pickup service is when it deploys its underground delivery technology at a grocery store, restaurant, or retail store. According to McCurrach, an Instant Pickup system enables a restaurant or grocery store to hand off an order to a customer in less than 15 seconds. The company says it has 100 preorders for Instant Pickup systems, a number which likely includes its Wendy’s pilot announced last year.

The company says it will also select a city to build its first large-scale middle-mile network installation. While McCurrach doesn’t say in which city they will first break ground, he did include a graphic of a map of the Phoenix metro area with a diagram outlining a “small middle mile network”

McCurrach: “This year, we will be selecting a city to build our first middle-mile network (a large-scale underground delivery network that makes current deliveries faster and cheaper in a city) and collaborating with local government and city officials to maximize the benefits of our low-cost, fast delivery system for all their citizens. Construction is set to begin this year, with plans to start utilizing the network by next spring.”

My guess is the company will likely find a lot more near-term traction for its Instant Pickup business, as extremely short-range delivery within a given plot of land is much easier to deploy than a city-wide installation. It also doesn’t hurt that the company’s push into curbside pickup and fast food drive-thrus comes at a time when grocery stores are growing their pickup business and quick service restaurants are reimagining how they handle drive-thru.

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