Food Delivery Startup Sprig Shuts Down as It Fails to Find BuyerBy
San Francisco company was burning through $850,000 a month
Meal production through delivery at scale was ‘a challenge’
On-demand food delivery startup Sprig Inc. is shutting down, the company said Friday.
Sprig, which cooked its own meals in-house and delivered them with drivers, was part of a bounty of such services that sprung up a few years ago, when venture funding for on-demand startups was strong. Like many of its peers, it struggled to make the business work: Bloomberg reported last week that it was burning $850,000 a month and seeking a buyer. Others like SpoonRocket and Maple have shuttered in the last year or so.
Gagan Biyani, chief executive officer and co-founder, said that food delivery has inherent difficulties for a startup. "The demand for Sprig’s convenient, high-quality food was always incredibly high, but the complexity of owning meal production through delivery at scale was a challenge," he wrote in a post on Sprig’s website.
Sprig had raised more than $56 million from investors including Accel, according to data compiled by Bloomberg. But it hadn’t raised new capital in more than two years. The company is giving two months’ pay to all its employees.