An Uncertain Future: New Entrants In The Food Delivery Space Decline As Existing Startups Struggle

An Uncertain Future: New Entrants In The Food Delivery Space Decline As Existing Startups Struggle
By CB Insights.

Food delivery startups originally became popular among VC investors in the early 2010s, with many large players such as Blue Apron ($2B valuation) quickly reaching high valuations, thus encouraging more new competitors to enter the market. However, as competition has increased and startups have struggled to find a financially viable business model, the challenges of food delivery have become more apparent to investors and activity in the space has begun to cool.

Most recently, Munchery made headlines for a recapitalization financing worth $5.6M led by Menlo Ventures and Sherpa Capital. The recapitalization was seen as a last resort by the company to attract investors after a turbulent year in which the company burned through much of its cash and laid off employees. The new financing has lowered Munchery’s valuation to $80M from $300M.

In a climate in which an increasing number of food delivery startups have been acquired or died, we took a look at how the once-overcrowded food delivery market has changed over the past few years.

Read more at CB Insights.

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