AI small cap Dragontail Systems (ASX:DTS) is getting into US food delivery.

It announced a collaboration with food delivery aggregator Postmates. Dragontail already has an agreement with North American-focused DoorDash as well as Asia-Pacific focused Kin Shun Information Technologies.

While Postmates only has 10 per cent market share, it is growing faster than UberEats, according to analytics firm Second Measure.

The company was valued in January at $US1.85 billion ($2.7 billion) at the time of its most recent fundraising round. Dragontail and Postmates share American hedge fund Tiger Global Management as a major investor.

Dragontail’s software optimises food preparation and delivery. The company says restaurants can save costs and increase customer satisfaction, and that this is the first such system in the world.

Pic: DragonTail systems

The technology is in place at over 1,600 locations, including 800 Dominos Pizza stores in Australia and New Zealand.

Shares climbed 3.2 per cent at market open.


In other ASX food and agricultural news today:

Roots Sustainable Technologies (ASX:ROO) says its cooling technology has passed its latest test with flying colours. It has tested its cooling technology on basil grown in the Israeli desert in extreme heat. Plant mortality was reduced by more than 60 per cent and yield increased 30 per cent. While previous tests had shown similarly solid results, this was the first test passed in the summer heat.

Since its last harvest in March, ECS Botanics (ASX:ECS) has spent the winter processing hemp seeds which have been milled into protein powder and flour. This morning it announced these were now available to the market and it could pack the material in quantities up to a tonne. It also revealed it would exercise its call option to acquire the hemp farm it currently leases for $1.44m. Managing director Alex Keach said he anticipated legislation similar to the Farm Bill being passed would provide an enormous export opportunity for his company and the industrial hemp industry generally.

Former small cap gone big Bellamys (ASX:BAL), which listed five years ago at $1 per share, announced a takeover bid of $13.25 per share by Chinese dairy company Mengniu. This is a premium of over 50 per cent to its price on Friday and shares have risen accordingly. The board of Bellamys has unanimously recommended shareholders accept the offer.