♪ GARY: Next on "Start Up," we head to Philadelphia, Pennsylvania, to meet up with David Cabello, the founder of Black and Mobile, a food delivery company that's on a mission to help elevate underserved Black-owned businesses.

All of this and more is next on "Start Up."

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♪ My name is Gary Bredow.

I'm a documentary filmmaker and an entrepreneur.

As the country continues to recover, small business owners everywhere are doing all they can to keep their dream alive.

So we set out for our tenth consecutive season to talk with a wide range of diverse business owners to better understand how they've learned to adapt, innovate, and even completely reinvent themselves.

♪ This is "Start Up."

♪ The first online food order was from Pizza Hut in 1994.

Since then, the on-demand food ordering market has increased in the US, with over 40% of US adults having ordered their food online or with an app.

In a 2019 market study of restaurant delivery services, the global market for on-demand food delivery was estimated at 94 billion and is expected to grow at just over 9% a year, reaching 135 billion by 2023.

Today I'm heading to Philadelphia, Pennsylvania, to meet up with David Cabello, the founder of Black and Mobile, a food delivery company that's on a mission to help elevate underserved Black-owned businesses.

I'm really excited to meet up with Aaron and David and learn how they're making their mark in this emerging business category.

♪ Give me a little bit about your background, history growing up.

DAVID: I come from a single, you know, single-parent household.

My mom, you know, raised us: me, my twin, my little brother.

You know, my dad was in jail most of my life, so, you know, my mom had to play that role, you know, to like the father and the mother.

So it was always different for us growing up.

You know, I got in some trouble growing up.

You know, I was misguided at first.

You know, it was just like my energy was misguided.

It was hard, but it was like it also made me who I am because being able to connect with so many different people and being able to adapt to any type of environment... GARY: Right.

DAVID: ...you know, it wasn't just all bad.

You know, when you're growing up in it, it's like, "man, this is bad."

But then as you get older, you know, you learned, it's like, you know what?

These things happened for a reason to make me who I am.

GARY: Tell me about your mom.

DAVID: She really taught me a lot about just, just never giving up, you know, like making her way out of anything.

Because she would have to do so much, like working multiple jobs.

She taught us so much from a young age.

We had to grow up a little faster, but it was all for good reasons.

She knew how hard it was in the real world and she didn't want us to go having to work four or five jobs and, you know, trying to keep food on the table.

All those experiences that she went through, she taught us so we didn't have to go through them, you know.

GARY: Did she make a lot of sacrifices for you guys?

DAVID: Oh, yeah.

I think that, honestly, she would be a famous singer if it wasn't for us.

Her, my grandma, they all had to make a sacrifice so we could be here.

And I'm just so thankful because I wouldn't be here without them making that sacrifice.

GARY: Growing up, what were some of the things, some of the foundations that you sort of laid or tried to instill in them?

RENEE: Sometimes the way that we handle things with the foundation isn't always the right way.

GARY: Oh, it's all mistakes.

RENEE: And I was very strict, disciplined, you know.

GARY: Good.

RENEE: I worked a lot.

So they definitely took some of that from me.

But it's hard.

GARY: Yeah.

RENEE: You know, I did the best that I could, but looking at them today, I'm not sure I would have changed much.

GARY: Right.

RENEE: But, you know, a couple little things.

But we're really good.

Like, we have a really good relationship.

GARY: For a parent, for you to be able to support them, uplift them and what they're doing, that's got to feel great.

RENEE: It is amazing.

I'm so proud of them.

Like, I get emotional, but I'm not gonna cry today or be emotional.

But I really am excited for them.

GARY: Yeah.

RENEE: I'm excited for Black and Mobile and where it's going.

And just knowing that I have a part in helping my kids do-- it's crazy.

GARY: Tell me about the original like sort of, guess it'd be the a-ha moment of when Black and Mobile came into your head.

DAVID: Our main thing was we wanted to help Black-owned businesses any way we can.

It wasn't geared towards restaurants.

We just, we want to help any way we can.

So we started working at a bookstore.

I helped take their business and elevate their business online.

But I started to make extra money because it was just like I got part time but like not a very well-paying job.

So I got to make some extra money.

So I started delivering food for like, you know, some of the other food delivery services out there.

But the one thing I noticed was I wasn't picking up from Black-owned restaurants.

GARY: Okay.

DAVID: Rarely ever did I pick up from a Black-owned restaurant.

You know, it was like just all White or Asian-owned businesses.

I'm like, well, I'm looking for a Black-owned business to support.

I could just do this on my own.

You know, I know the system.

I'm delivering.

You know, I taught myself how to build an app through Shopify.

I'm like, let me try this myself.

So I just literally Googled, "How do I start a food delivery service?

Are there any Black-owned food delivery services that exist?"

GARY: Yeah.

DAVID: And nothing came up.

So that was really the a-ha moment for me, where I said, "You know what?

Let's go for it."

You know, that was in 2017.

Ever since Black and Mobile came into my head, I have not stopped thinking about it.

It's been five-plus years, and not a single day has gone by.

GARY: Obsessed.

DAVID: Obsessed.

I'm obsessed.

I go to sleep thinking about it, I wake up... GARY: That's awesome.

DAVID: Everything is just about Black and Mobile.

♪ ♪ GARY: Tell me about when the idea was first presented to you as Mom.

RENEE: I wasn't for it.

They dropped out of college.

I was very upset about that.

But now that I've seen how, you know, passionate they are about it.

GARY: Yeah.

RENEE: How enthusiastic they are about it.

Like, I'm equally enthusiastic now.

And I see like what they really are trying to do with Black and Mobile.

I love being able to work for my kids.

It's weird because I never thought that I would like be doing that, but here I am.

GARY: What's the philosophy behind Black and Mobile?

DAVID: So our philosophy honestly is really to connect anyone to a Black-owned restaurant.

Because at the end of the day, most people, whether you're Black, White, Asian, regardless of color, most people cannot name over ten Black-owned restaurants off the top of their head.

So our main thing is like we want to educate people and show people where these Black-owned restaurants are and make it a lot easier to support these restaurants.

We're gonna bring the culture right to you.

So that's why we say "the culture delivered," where, you know, we're just bringing it to your front door.

GARY: What was step one to really get this off the ground?

DAVID: Honestly, the very first step was marketing before I even launched my business.

GARY: Marketing.

DAVID: Marketing.

I had a big orange bag that said "Caviar" on the back.

I put my logo over the "Caviar" and I was marketing for a whole year and a half before it ever came out.

Telling everyone, "I'm about to launch a business.

I'm about to launch Black and Mobile."

"Okay, bro.

Like, good for you."

All the drivers are, "Okay, we'll wait for that."

You know, like making jokes.

But getting started, like that's the one thing where like it's so cliché, but you really just got to start.

Like, it ain't gonna be perfect.

You know, we had like a janky website where it was like alright, it was okay, but it wasn't what it is now, you know.

So we just started.

Started with a few clients, but we got somewhere just from believing in ourselves.

We just started.

Me and my brother running the entire city on our bike.

Yeah, you just got to do what you got to do.

GARY: So you had never built a website before and you built it?

DAVID: Never built a website.

GARY: And you never built an app before and you built it?

DAVID: Yes.

Six months.

I taught myself.

GARY: I'm sure it was crude in the beginning, right?

DAVID: Yeah.

GARY: But did it function and perform the things you needed it to?

DAVID: It did, it did, it did.

GARY: Enough to go in and sign restaurants up?

DAVID: Enough to sign restaurants up, enough to do a half a million dollars in sales, too.

GARY: What?

DAVID: In our second year.

Yeah.

So we did pretty well on an app that I built myself.

But the thing was, it was so much traffic we were getting, we were refunding orders, like quarter million dollars in refunds.

Like, it was like so much because like... GARY: You couldn't keep up.

DAVID: We couldn't keep up with it.

GARY: You know what that tells me?

That tells me that it was time to go out and get an investment.

DAVID: It was.

We had plenty of people that want to invest in the company, but we just, we weren't ready for that, honestly.

Like, you know, we were still learning so much.

Our company wasn't, like, now I know, but we weren't a C Corp. We were like an LLC.

So there were so many different things that I had to learn.

I learned a lot, you know, like jumping that much in sales.

It was just like, "Now what's next?"

You know, like now that I've tasted that, I don't ever-- I can't go-- I can't be anything less than that.

I have to go even higher.

♪ ♪ AARON: David's different from me, like... he's really, really smart like when it comes to like tech stuff and like figuring things out from that, like he's a business person.

I wasn't really a business person.

I can help him.

I'm like the muscle, but David, like when it comes to piecing stuff together from that end, I've never seen anything like it in my life.

I don't even know how he even came up with it.

I was amazed myself, like, this is, this is good.

GARY: How he built it all himself, dude.

That... it just blows my mind.

AARON: How it came to even fruition.

But I knew, like, this is it.

This is the answer for everything we've been looking for.

And we just have different roles.

We have different personalities.

He takes care of like the bulk, like, the restaurants and, you know, new partnerships and stuff.

I'll handle like the drivers.

I'll go do deliveries.

I'm like, I'm really like the muscle of it.

I'll do the hard work.

GARY: Okay.

You're the enforcer.

You go out and make it happen.

AARON: I'll do things that he just simply just won't do.

And he can do things I just simply can't do.

♪ GARY: People were using the app for delivery.

How did they find out about the app?

DAVID: Social media.

Yeah.

GARY: Okay.

DAVID: We're really big on social media, on Instagram.

I didn't really use all the other channels, but Instagram was our... GARY: So it was you doing it.

promoting it on Instagram.

DAVID: Showing me doing deliveries.

Taking pictures of customers.

That's really where we got a lot of our momentum from, just, you know, working with other restaurants.

You know, they're promoting us, you know, doing a bunch of news articles.

Like so many people reached out to us.

I've never reached out to any companies to ever do a story on me.

They reached out to me, and it was like overwhelming for like a whole year.

Just like, even from Jay-Z.

Jay-Z and Pharrell reached out for us to be in their music video.

GARY: What?

DAVID: Things like that, where it's like, you don't even expect for people like that to know about you.

You know, so it was like... We got, I'll say, we were blessed.

You know, there was a lot of things in our favor that, you know, happened, where it was like we're doing, we're so focused on what we're doing that people are gravitating there just to see how passionate we are and how hard we're going.

Where, you know, they just want to hear about us.

GARY: At this point, were you thinking, I need to hire more delivery people?

What was going through your head at that moment?

Because you got a viable business now.

DAVID: Yeah.

Yeah.

It wasn't even all about the drivers at times, because the thing was technology.

And, you know, we were moving so fast, where it was like calling every order in, you go to other services, they're not doing that.

They have the tablet system.

They got the app, and that sends it to the... GARY: It goes direct.

DAVID: It goes direct.

So that was our next hurdle.

GARY: I got you.

DAVID: How do we get to that level, you know?

GARY: You were getting an order and having to call the order in?

DAVID: Every single last time.

GARY: Oh, my gosh.

DAVID: I'm talking about for twelve... And then on top of that, I was in the car delivering and calling the orders in and dispatching it while I'm delivering the food.

So... GARY: I don't even know what to...

I mean, hustle is not a sufficient word.

DAVID: It's not.

It's a lifestyle.

It's like, honestly, like, it's one thing I learned from a movie I was watching is "grow or die."

That's it.

GARY: Yeah.

DAVID: You got to grow.

You got to deal with the growing pains.

GARY: So it was time.

How did you grow?

DAVID: So we had, when we tried to grow, we had a lot of setbacks.

We didn't choose, I guess, the right people, you know, where...

When we took that leap of, like, alright, from phone calls to tablets, you know, we're working with some Black-owned agencies, and it didn't really turn out the way we wanted it to, you know.

Some launches got messed up in Atlanta.

It was super buggy.

And we lost, like $1.3 million.

The lost revenue on top of the cash that we had to lose.

It was depressing, I'll be honest with you.

Going from like so, like so much momentum to just going flat down to zero.

It was hard.

It was definitely hard.

You know, we're still...

Honestly, we're still recovering from it, you know.

We made a comeback, but it was just a rough year.

2021 was a rough year.

We were plagued by tech issues for a year.

Honestly, a little longer than a year, because then from the first agency to the second agency, same thing happened, you know.

Same thing where we fired the first team.

Second team came in, got a bunch of our money, and nothing worked.

So it was like 18 months of going through hell and trying to survive.

GARY: What are the repercussions for these folks?

I mean, you pay them for a service... DAVID: We didn't get any money back.

We lost customers, restaurants.

We lost drivers.

We lost reputation.

We lost a lot of things because of that, and, you know, not much we can get back from those companies.

We already paid them.

So, um... Yeah, you know?

GARY: That stings.

DAVID: It is what it is.

It hurts, yeah.

It hurts.

GARY: But it's a huge lesson, right?

DAVID: Oh, yeah.

AARON: It was just frustrating to watch something that we gave our all to, like we gave our life to it, and to watch other people kind of try to ruin it.

GARY: Yeah.

AARON: Kind of try to ruin it.

GARY: What kind of red flags should people watch out for when they're hiring a company that's so important to the growth of their business?

AARON: Just see the work they've done in the past.

GARY: References?

AARON: Ask them... references.

See, like, don't put them in a position to completely ruin it.

Just give them like a small little sample of like something they can work on.

GARY: Oh, I got you.

AARON: See how they do that, and then make a decision to like add them some more jobs.

GARY: That's very smart.

Like what you just said, like give just a little piece.

AARON: Just to see.

GARY: And then if that goes well, maybe a little bigger piece.

AARON: And that's what a restaurant is doing with us right now.

A really big client in Atlanta, she's given us the opportunity to do her catering orders.

But they're just starting there.

Because we had some mix-ups with that... GARY: They want to see how you do.

AARON: They want to see how we can really grow with that and how consistent we can be before we even jump into on-demand.

Because, like, if we get into on-demand, our company is gonna be very successful just from that one restaurant in that city.

GARY: Yes.

AARON: Automatically we're just gonna blow up from that one.

♪ ♪ GARY: Where are things today?

Obviously those apps and the folks that you worked with in Atlanta, that's not working.

So did you go back to the original system to kind of just keep the wheels turning for now?

DAVID: Um, no, we went, we found a new system that, you know, really kind of takes care of all of it, you know, from the dispatching, from the driver app.

It worked out.

GARY: And that's where you are right now?

DAVID: That's where we are right now, you know.

We're still in five cities.

We're in Philly, Atlanta, Baltimore, New York, and LA.

So we're still operating in five cities.

We're doing catering now.

We're doing takeout.

We're even launching a job listing directory, where the one thing I noticed over the last few years is that Black-owned businesses, they need employees.

A lot of them are struggling.

Everyone needs employees, but, you know, for my niche, I'm looking at the Black-owned restaurants, and it's hard to find staffing.

So we're gonna launch a platform in a couple weeks where anyone will be able to go and find a Black-owned restaurant that exists in the country, but also find a job.

So these restaurants were able to post job listings to find, you know, career opportunities.

And on top of that, if you want to order some food, that's always gonna be the number one business.

You know, where you can go and order food.

GARY: Do you get pushback from people saying it's exclusionary?

DAVID: I'm definitely open with that.

So the thing is, with our business, we don't promote anything with hate.

We don't-- It's all about food.

But when you go to a Black-owned restaurant or another restaurant, you can immediately notice the difference, you know, from, like, you know, not being staffed or not having enough money and things like that, or not just being easily found on some of these like platforms like Instagram and Google.

So my main thing for us is, like, it has nothing to do with race.

We allow anyone to order, you know, but we know who the underrepresented, you know, community is, and it's the Black community.

As a Black man, I feel like it's my duty to be able to help my community, and... GARY: Boosting up your community doesn't mean pushing someone else's down.

DAVID: Exactly.

I don't talk about anyone else's community.

I don't talk about, bad about any other business.

I'm just here to empower the businesses that we work with.

That's really what it comes down to.

♪ ♪ GARY: Tell me your name and a little bit about your business, where we are right now.

ALEEM: I'm Aleem Smallwood.

Our business is Philly Tropical Treats.

GARY: When did you first hear about Black and Mobile?

ALEEM: Back, 2019 when I first started the business.

GARY: Okay, so, right when you started it, you already knew?

ALEEM: Yes.

GARY: What made you attracted to a delivery service like that?

ALEEM: Just being accessible to everyone.

And then being as though they was Black, Black-owned business, and helping the community grow.

And just getting my product out there as well.

GARY: How's it worked out so far?

ALEEM: Oh, it's pretty fair.

Yeah.

GARY: Okay.

Have you ever done any other delivery services?

ALEEM: No, I'm stuck with them.

GARY: Okay, good.

And loyal, I would assume?

ALEEM: Yeah, pretty much.

♪ ♪ GARY: Tell me, who is the company right now?

DAVID: It's me.

You know, I'm the founder and the CEO.

I do all, like, the managing and things like that, the day-to-day work.

I got my brother.

He's the main dispatcher, you know, hiring drivers, you know, making sure orders go out, things like that.

My mom is customer service, but another key thing is she works on our directory.

You know, data and managing our spreadsheets for all the Black-owned restaurants.

So that's also a huge thing that she does.

And then we have other part-time team members that, you know, help us with menus and help us with just consultations, and like really just advising me on like, you know, the best decisions.

GARY: Yeah.

DAVID: But the core team, you know, it's us three and then... GARY: Family.

DAVID: Family, yeah.

That's the core team.

GARY: What were the first steps like when he approached you and he asked you to work with him?

What was happening with the company at that point?

RENEE: They were doing great.

They were doing great, and they needed, you know, a little more help doing some things.

And, you know, I stay at home.

So he said, "Mom, you know, I need somebody to do customer service, you know, do some doc work, whatever."

GARY: Yeah.

RENEE: I'm like, "Okay..." But now, like, listen, that's my lane.

I'm good, like, I love it.

♪ GARY: You got to be excited about this business, aren't you?

AARON: I have grown more excitement every day because like it was a rough year and a half.

And it put me in a position, you know, like, for my job title, what I was doing, like I'm the dispatcher handling stuff.

It was all over the place.

It was like we couldn't really get it together.

So now that it's all coming together, this is what we needed.

This is like the revival we needed to get to that level that we know we can get to.

Because we were there, but we just had too much demand.

GARY: Tell me about some of the opportunities that you guys have in front of you right now.

AARON: So just a few, um... One of the ones I'm very, very excited about is-- we just got off the phone with them yesterday-- a company that Magic Johnson is a part ownership with, with the HBCUs.

We'll be doing deliveries for a lot of the HBCUs.

GARY: Okay.

AARON: That is like really iconic to me because I really like look up to someone like Magic Johnson.

To be able to do that for the college students, that's a market that we have not been able to tap into, but it's such a big market.

GARY: Huge market.

AARON: Such a big market.

So we'll be able to really capitalize off that.

They're giving us a taste of it.

They're giving us that small taste, that one spot in Baltimore, and they're gonna play it out.

And then we got, um, possibly "Shark Tank."

We'll see how that works out.

We're just gonna test the waters with that.

GARY: Is there anything that you can think of over the past, you know, couple years, you know, that you would change specifically?

What's the biggest hardship?

AARON: Just watching who we do business with, make sure we just protect our image, our brand, and just getting the right information.

Like, that is what hindered us a lot, too.

We got to get smarter.

And then just honestly hiring a team, too.

We didn't hire a team before that, really.

Like, I feel like it hurt us a lot of times because there was so much pressure put on me and my brother.

And it creates conflict between us.

Because we're blaming each other, blaming each other.

But we just need a team.

We just need a team around here that... GARY: It's time to grow.

Everybody wants it.

It's ready.

AARON: Everyone wants it.

Everyone sees it.

We just have to get it.

GARY: Yeah.

Making patient, careful decisions about your next move... AARON: Absolutely.

GARY: This could be absolutely huge.

I have no doubt that this is gonna be...

This is gonna be really huge.

AARON: Yeah, we got a lot of things planned.

Like, the excitement is back now.

Like, this is like...

In this, in my life personally, I'm just happy.

I've been like kind of out of it for a little bit.

I've been going through a lot of personal things, like people go through stuff, but... GARY: Of course.

AARON: I'm happy now.

GARY: Are you making money right now?

You doing alright?

DAVID: Yeah, we're doing good.

We're still coming back from last year, but we're doing good, we're growing.

We did--in what, one month we did more sales than we did in the last three months.

So it's growing.

GARY: Oh, that's incredible, man.

Congrats.

DAVID: Yeah.

It's growing.

GARY: What does the future hold?

Where do you see this company in a year?

And then where do you see it in ten years?

DAVID: Yeah.

So, in a year, you know, I would say maybe in five more markets, you know, that we're looking at.

Now, for ten years, I mean, honestly, there's so many possibilities for us.

Like, you know, I think that, honestly, first we got to get an investor.

To take this to the next level, we got to go raise a lot of money.

Focusing on food delivery is the first step, and then growing our business into other areas.

You know, the possibilities are endless, but we got to definitely get an investor.

GARY: I'm looking at this like as, from an investor's perspective, and I'm saying, okay, half a million dollars in revenue.

250 in refunds because you don't have the staff and the infrastructure to support it.

That is truly an investor's dream.

Because your problem is not that the model works, the problem is the technical aspects to grow.

DAVID: Oh, the model works for sure.

It's more about the tech.

People don't even really know about us.

Like the people that know, they know, but we're not a household name like these other guys.

So that's the thing where, you know, we have a niche market, you know, we're young entrepreneurs, it's gonna blow up.

I already know that, you know, between equity crowdfunding that we're looking into, there's so many different avenues for us where, you know, we had to just slow down a little bit, but it's gonna take off.

I think that we're gonna find the right investor.

I've been on the phone with investors, but, you know, we're gonna find the right one for us.

GARY: What would you say to somebody that has, like, an impossible dream?

What do you say to those people that are doubting their huge ideas?

DAVID: Well, the first thing I would say is that me, personally, I went through the same thing.

I doubted myself so much when I first got started.

If you don't let go of all those fears and insecurities and doubts, if you don't let that go, you're not gonna go anywhere.

It's a journey.

It's not gonna happen in a year.

I thought, oh, man, we're gonna be so successful in a year or two.

No.

GARY: Patience.

DAVID: It takes years, you know, to like really develop who you are yourself, the business.

If you're not willing to get back up when you get knocked straight down, I'm talking about almost knocked out.

You got to get back up.

And if you don't, I mean, that's what separates the founders that, you know, are successful.

That's what I've learned, like, you got to get back up.

Vou know, you cry about it for a little bit, get back up and keep moving because you got some more stuff you're about to deal with in a few months.

So it's just all about surviving.

That's really what it's about.

♪ GARY: I love this story.

And it was such an incredible honor spending the day with David, Aaron, and the rest of the team at Black and Mobile.

Their focus is to highlight underrepresented businesses in urban communities that are often overlooked and provide them with the technology they need to not only expand their customer base, but to stay competitive in this rapidly changing economy.

This also allows the company to hire men and women from underserved communities, which will directly affect the unemployment rate and allow more people to be exposed to more opportunities.

And there is nothing exclusionary about this business.

The fact that they have chosen to focus on one specific area of need does not mean that non-Black-owned businesses are not important or in need of support.

They have simply chosen to focus their business on this one undeniable area of need.

David and Aaron have created something very special, and I can't wait to see what their future holds.

For more information, visit our website and search episodes for Black and Mobile.

♪ Next time on "Start Up," we head to Trenton, New Jersey, to meet up with Ayana Abdul Raheem, the founder of Timbuk2 Academy, a private independent institution that offers high quality holistic arts and education for girls and young ladies ages 9 to 22.

Be sure to join us next time on "Start Up."

Would you like to learn more about the show or maybe nominate a business?

Visit our website at startup-usa.com and connect with us on social media.

♪ ♪ We got a long road ahead of us ♪ ♪ A long road ahead of us ♪ A long road ahead of us before we pay our dues ♪ ♪ We got a long road ahead of us ♪ ♪ A long road ahead of us ♪ A long road ahead of us before we pay our dues ♪ IAN: Awesome!

♪ [beep] WOMAN: Like no, no, no... GARY: Oh, for you.

Yeah, okay.

MAN: Oh, that's cheating!

GARY: Piggybacking off my bull.

[woman laughs] ANNOUNCER: The first time you made a sale online was also the first time you heard of a town named... MAN: Dinosaur.

We just got an order from Dinosaur, Colorado.

MAN: No way!

ANNOUNCER: Build a website to help reach more customers.

WOMAN: Wait, wait, wait, wait!

One more.

ANNOUNCER: GoDaddy.

Tools and support for small business firsts.

Spectrum Business recognizes the importance of small businesses to local communities, so we're investing $21 million to help small businesses access funding to help them grow.

Spectrum Business.

More than an internet, phone, and TV provider.

♪