Munchery, the on-demand meals supply startup, has shut down its operations in Los Angeles, New York and Seattle, the corporate introduced on its weblog immediately. Which means the groups from these cities are additionally being let go. In complete, 257 folks (about 30 % of workforce) had been let go, in keeping with a Munchery spokesperson.
“We acknowledge the impression this may have on the members of our staff in these areas,” Munchery CEO James Beriker wrote on the corporate weblog. “Our groups in every metropolis have constructed their companies from scratch and labored tirelessly to serve our clients and their communities. I’m grateful for his or her unwavering dedication to Munchery’s mission and success. I really want that the end result would have been totally different.”
With LA, New York and Seattle off the desk, Munchery says it’s going to focus extra on its enterprise in San Francisco, its first and largest market. This shift in operations may even allow Munchery to “obtain profitability on the close to time period, and construct a long-term, sustainable enterprise.”
The final couple of years for Munchery has not gone very nicely, between scathing studies of the corporate losing a mean of 16 % of the meals it makes, shedding 30 staff and burning by means of many of the cash it raised.
Throughout that point, Munchery tried plenty of totally different methods. Munchery, which started as a ready-to-heat meal supply service, in 2015 began delivering meal recipes and components for individuals who need to prepare dinner. Then, Munchery launched an $eight.95 a month subscription plan for individuals who order a number of instances a month. In late 2016, Munchery opened up a store inside a San Francisco BART station to attempt to herald new enterprise.
But it surely’s not simply Munchery that has struggled. The on-demand meals supply enterprise is hard generally. Over the final couple of years, plenty of corporations have shuttered because of the now well-known undeniable fact that the on-demand enterprise is hard in the case of margins. The latest casualty was Sprig, which shut down final Might, after elevating $56.7 million in funding. Different casualties embody Maple, Spoonrocket and India’s Ola.
Munchery has raised greater than $120 million in capital from Menlo Ventures, Sherpa Capital and others. In March, the corporate was reportedly searching for $15 million in funding to assist preserve its head above water.