On-demand food-delivery service Sprig won’t be growing any bigger than its namesake. The San Francisco-based company announced Friday (May 26) that it was shutting down, joining the ranks of food delivery apps Maple, Spoon Rocket and Ola. Friday was Sprig’s last day in business.
“No question, I’m sad that the Sprig model did not work out,” CEO Gagan Biyani said in an email that circulated to the app’s users on Friday. “The demand for Sprig’s convenient, high-quality food was always incredibly high, but the complexity of owning meal production through delivery at scale was a challenge.”
Sprig had raised $56.7 million to cook and deliver its own gourmet meals in the San Francisco area, but insiders said it was losing six figures monthly and could not expand the service into other cities.
In San Francisco, the company tried to supplement business with a walk-in service at a brick-and-mortar location and started delivering its food via Caviar – perhaps the earliest of the death throes. In Chicago, it had to lay off seven people before pausing operations last July.
For Sprig, the disappointment is less of a focus than taking care of its own. The company is committed to supporting employees through the transition (a force of about 200) by providing two months’ severance pay and hosting career days to help them find the next stepping stone in their careers.
Biyani was sure to thank Sprig’s customers for their support and loyalty and praised his staff for their hard work, talent and passion.
He concluded, “After spending four years as a food-tech industry insider, I’m amazed at what the space has become. Food is one of the foundations of society, and I believe strongly that it must become more sustainable and ethical. I’m hopeful that the food delivery companies that are succeeding will make this a priority.”