Overview

Product Description

SpoonRocket’s approach was speed and low prices over quality, shooting for sub-10 minute delivery of sub-$10 meals. It aimed to be cheaper and faster than cooking or ordering delivery from a traditional restaurant. SpoonRocket’s chefs made its limited selection of meals each day in bulk, then sent them out for distribution through cars equipped with warming cases.

Quick Stats

2013

Started in

Mar, 2016

Closed in

11-50

Employee (s)

$13,500,000

Total Raised

Why did SpoonRocket fail?

Follow This Question - 1

Evan Lee

Updated on 25 Jul, 2017

Competition

Poor Product

Ran Out of Funding

SpoonRocket was one of the many startups in the food delivery space that collapsed in 2016-2017. &nbsp;Like other on-demand service companies, SpoonRocket struggled with thin margins and the logistics of balancing quality ingredients with fast delivery and user retention.Unlike other "farm to doorstep" full service food delivery startups, SpoonRocket actually reached a positive margin. However, SpoonRocket focused on speed and low prices over quality of product. The company's <a href="https://techcrunch.com/2016/03/15/spoonrocket-shuts-down/">mantra</a> was sub $10 meals delivered in 10 minutes or less. However, the low quality&nbsp;food was often described as "sketchy" and "gross", leading many people to migrate to other delivery competitors like Sprig.In early 2016, SpoonRocket was unable to find new funding to keep its operations running. After a buyer pulled out last minute, SpoonRocket closed in March 2016. The company transitioned some of its customers and drivers to Sprig, which ironically also ended up shutting down itself.

0 Upvotes

Investors - 9

Funding Rounds - 2

Seed - $2,500,000

Series A - $11,000,000

Founders

Steven Hsiao

Anson Tsui

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Top Contributors

Evan Lee

SpoonRocket

2013

Started in

Mar, 2016

Closed in

11-50

Employee (s)

$13,500,000

Total Raised

Why did SpoonRocket fail?

Evan Lee

Updated on 25 Jul, 2017

Alexis Ohanian

Base Ventures

Foundation Capital

FundersClub

Garry Tan

Justin Waldron

Oliver Jung

Sherpa Capital

Y-Combinator

Seed - $2,500,000

Alexis Ohanian

Base Ventures

FundersClub

Garry Tan

Justin Waldron

Oliver Jung

Y-Combinator

Series A - $11,000,000

Base Ventures

Foundation Capital

Sherpa Capital