Why These Food Tech Companies Failed

Why These Food Tech Companies Failed

By Kerri Adams, Editor-at-Large

Five years ago, it seemed like every entrepreneur wanted a piece of the food tech pie. Once PostMates launched in 2011 and GrubHub and Seamless merged in 2013, thousands of food-focused technology companies were on the lookout for funding.

The future looked bright as many of these companies raised millions. Fast forward to 2016, several of these well-funded startups have been forced to throw in the towel.

But, why did these companies fail in the first place? Especially when many of which seemed to be on track to succeed?


This on-demand pre-made meal delivery startup announced in mid-march that it was closing up shop. Although the company had raised $13.5 million, it wasn’t enough to fund the costs to continue operating. 

So, why couldn’t SpoonRocket stay afloat?

The Fierce Competition 

By 2016, SpoonRocket was one of the many on-demand food delivery services on the market. DoorDash, PostMates, Caviar, GrubHub and even Amazon were rapidly spreading to different cities. 

Investors interested in the third-party delivery sector had more options to choose from.

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SpoonRocket food delivery app begins service in Seattle

SpoonRocket Delivery Services  | Facebook

SpoonRocket Delivery Services | Facebook

San Francisco based startup SpoonRocket has begun offering its food delivery services to the city of Seattle. Partnering with several local restaurants, SpoonRocket introduced lunch time deliveries to the University of Washington campus in Seattle, joining the ranks of a number of other fellow delivery providers offering their services in the city. 

Yet while there are several food delivery services currently operating within Seattle, SpoonRocket plans to set itself apart from the pack by promising both the lowest delivery fee and fastest delivery time.  Currently, SpoonRocket offers food delivery in under ten minutes, made possible by offering only limited number of menu items.  The delivery service also utilizes special heating equipment within their delivery vehicles to ensure the food will remain fresh and warm upon delivery.

With over 600,000 restaurants in the United States, SpoonRocket is one of many food delivery apps that are beginning to emerge with the goal of connecting consumers to more food options. 

Learn more about SpoonRocket's food delivery services here

Food Startups and Technology are Reinventing Fast Food


Food startups are all the rage. But in order to be a successful startup, investors are key. With the market becoming somewhat saturated with similar product, it’s important for these hit-the-ground-running companies to offer some sort of differentiation. And that’s exactly what startups like Sprig and SpoonRocket are doing. More than a delivery service, these brands are also cooking up the food being delivered, which would technically classify them as restaurants — a new kind of “dining.”

As TechCrunch puts it, software is eating food. Read More