Data Science Investment Counter —Funding raised by UK data science companies in 2018.
£ 5.640 Million

McDonald’s buys Israeli AI startup Dynamic Yield for $300m

Fast food giant McDonald’s announced Monday that it is acquiring Dynamic Yield, an Israeli start-up using artificial intelligence (AI) to give consumers personalised experiences.

Despite the company not officially disclosing the size of the deal, Wired reported the acquisition would cost McDonald’s over $300m.

The new technology would allow the company to use AI to tailor the items displayed on menu boards at drive-thru outlets based on various factors, such as the weather or how busy the restaurant is. It will also be able to recommend customers extra items based on their initial order.

What is more, Dynamic Yield will expand McDonald’s “ability to increase the role technology, and data will play in our future,” McDonald’s CEO Steve Easterbrook said in a statement. It will also increase “the speed with which we’ll be able to implement our vision of creating more personalised experiences for our customers,” he added.

McDonald’s originally started testing Dynamic Yield‘s tech in US restaurants last year. The company said it plans to integrate the platform into its drive-thru menu boards at outlets in the US this year before expanding it to international markets. Eventually, McDonald’s also plans to incorporate the tech into its self-order kiosks and mobile app.

Dynamic Yield, which is based in Tel Aviv and also had headquarters New York, was founded in 2011 by CEO Liad Agmon and CTO Omri Mendellevich and raised $32 million last August, bringing the total funds raised to $83 million, according to CrunchBase. The start-up will reportedly remain a standalone business under McDonald’s ownership.

Commenting on the acquisition, Agmon said: “We started Dynamic Yield seven years ago with the premise that customer-centric brands must make personalisation 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.”

Image via andreas160578/Pixabay.

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