Maria Montero

After raising $ 125 million, Munchery is unable to deliver

Munchery On-Demand Food Delivery Start The cessation of operations will take effect immediately, the start announced in an email to clients on Monday.

Founded in 2010, the San Francisco-based company had raised a total of $ 125 million in venture capital funding, reaching a valuation of $ 300 million with a round of $ 87 million in 2015, according to PitchBook. Munchery was backed by Greycroft, ACME Ventures (formerly Sherpa Capital), Menlo Ventures, e.Ventures, Cota Capital, M13 and more.

“Since 2010, we have been committed to bringing fresh, local and delicious foods into your homes along with all of our customers across the country,” the company wrote in today’s email announcement. “We have loved working with world-renowned chefs, experimenting with diverse and unique ingredients and recipes, and being a part of their holidays and holiday traditions. We have also enjoyed giving back to our community through food donations, volunteer service, and much more. “.

The news isn’t all that surprising, as Munchery laid off 257 employees, or 30 percent of its workforce, in May after shutting down its operations in Seattle, Los Angeles and New York. At the time, the company said it planned to double its largest market, San Francisco, which would help it “achieve profitability in the short term and build a sustainable business in the long term.”

Munchery, however, did not deliver on those promises. In addition to the 2018 layoffs, Munchery struggled for years to navigate the challenging plains of on-demand food delivery. To stay afloat, the startup changed a bit, from originally launching as a ready-to-eat meal delivery service to delivering meal kits, to creating a subscription plan of $ 8.95 a month for customers. regulars and eventually opening a store inside a San Francisco BART station in an attempt to win over the crowd of passengers.

Munchery is just the latest in a line of shutter food delivery companies. Doughbies, a cookie-to-order delivery business, closed its doors in 2018. Sprig, Maple and Josephine are among the others to falter under pressure from a crowded market.