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Cash Burns Fast for Uber-Like Startups That Grow City by City

Will They End Up Like Webvan and Kozmo.com?
Operations Inside The Good Eggs Distribution Center
Photographer: David Paul Morris/Bloomberg
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When Good Eggs Inc. began delivering fresh, locally farmed food in San Francisco two years ago, the Web startup leased a warehouse and hired a team. Total cost: as much as $1 million.

The need for cash escalated as CEO Rob Spiro moved into Los Angeles, New Orleans and Brooklyn. To fund the expansion, investors backed Good Eggs with $2 million in April 2013, $8.5 million five months later, and $21 million a year after that, in September 2014.