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.Read More