ShiftPixy's Stock Soars After Inking Deal With 11 Del Taco Restaurants
ShiftPixy Inc (NASDAQ: PIXY), a provider of mobile engagement technology to help businesses with shift-based employees navigate regulatory mandates, announced Tuesday a deal with Diamondback DTNM, an operator of 11 Del Taco Restaurants Inc (NASDAQ: TACO).
ShiftPixy has a market cap just north of $18 million.
What Happened As part of the agreement, 11 Del Taco restaurants in the Albuquerque, New Mexico region will start using ShiftPixy's platform. The goal is for the Del Taco franchisee to leverage ShiftPixy's end-to-end platform for human capital management and native delivery.
ShiftPixy's platform for the food industry is part of its recently announced Restaurant Resilience Plan. The technology offers restaurant operators access to technology and services "vital to their survival and ideal for once business reopens."
Why It's Important The coronavirus (COVID-19) pandemic forced restaurants to "re-think their approach" to stakeholders, including customers, employees and other third-parties, CEO and co-founder of ShiftPixy Scott Absher said in the press release.
ShiftPixy's platform allows the Del Taco franchisees to be able to better focus on delivering a great food experience instead of worrying about challenges posed by the pandemic.
"We've saved significant time and capital and have elevated employee engagement," said John Bissell, VP and COO of Diamondback. "The native delivery solution, which we think is simply amazing, has allowed us to access customers we would not have otherwise reached while maintaining control of our brand."
What's Next It's not clear or known if ShiftPixy's agreement will expand beyond the Albuquerque region.
Shares of the ShiftPixy traded higher by more than 84% to $11.76 at time of publication.
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