Munchery Suddenly Closes After Raising $125 Million
On-demand food delivery startup Munchery ceases operations immediately despite raising $125 million and reaching a $300 million valuation.
On-demand food delivery startup Munchery ceases all operations immediately, the company announces in an email to customers. Founded in 2010, the San Francisco-based business raises a total of $125 million in venture capital and reaches a valuation of $300 million before its sudden collapse.
The shutdown comes as little surprise after Munchery lays off 30 percent of its workforce in 2018 and retreats from Seattle, Los Angeles, and New York. The company struggles to navigate the challenging food delivery market and constantly shifts its business model, moving from ready-to-eat meals to meal kits and subscription plans in a desperate bid to survive.
Munchery represents just the latest casualty in a crowded food delivery sector, following the failures of Doughbies, Sprig, Maple, and Josephine. Despite promising to achieve profitability by focusing on its core San Francisco market, the startup ultimately fails to build a sustainable business.