Bad news for Good Eggs, the 2011-founded food delivery startup that just this last year raised $21 million in funding according to TechCrunch. Today the company announced that it is pulling out of Los Angeles, New York City, and New Orleans, cities to which it expanded its services recently. And according to TechCrunch, Good Eggs is also making cuts to its staff, laying off around 140 employees.
In the crowded food delivery startup space, Good Eggs stands out for its emphasis on farmers market food — something of a hybrid between a CSA and Seamless. For another analogy, it's sort of like an online version of the Ferry Building, delivering comestibles from local vendors like the ones there including produce, meats, and dairy products.
CEO and co-founder Rob Spiro copped to the company's major misstep quickly. "The single biggest mistake we made was growing too quickly, to multiple cities, before fully figuring out the challenges of building an entirely new food supply chain," he wrote. "[To] continue figuring out all the complexity that is required to achieve our mission, we cannot productively maintain operations in other cities."
TechCrunch put the Good Eggs team at 215 members strong during that $21 investment round, adding that the number would likely grow as the company stepped into those new markets. That wasn't to be, and 15 percent of Good Eggs workers were laid off in January. "While we’re becoming leaner in certain areas, we’re continuing to hire and grow," Spiro wrote then. "Although this wasn’t an easy decision, we know that it will allow us to scale effectively and ultimately fulfill our mission for years to come."
But in the Bay Area, Good Eggs is more staunch. "We’ve seen consistent success here with so many loyal customers, hundreds of amazing producer partners, and a dedicated team that remains 100+ strong."