SpoonRocket dubbed itself as the fastest on-demand food delivery service recently put an end to its food app delivery service business.
In its official website, SpoonRocket regretfully informed its loyal clients that it will be shutting down on Tuesday, March 15. It went on saying that SpoonRocket started with the mission to provide delicious food to our customers with the most magical delivery experience. Over the past 3 years, it received several accolades include Best Food Delivery for San Francisco Magazine in 2015 and Best Food Delivery for East Bay Express in 2015. The food app delivery service's devotion to excellence has even netted it over 1800 Yelp reviews in less than 3 years at over a 4-star rating. It admitted that it continued to face intense competition from competitors like Sprig and an ever tightening funding environment. While SpoonRocket explored all strategic options till the very last minute, unfortunately, they all fell through.
Because of this tight competition, SpoonRocket gave up its food delivery service app and gave way to Sprig, its competitor in the past. SpoonRocket is partnering with Sprig. This is to ensure SpoonRocket customers having a great option for delicious, convenient, ready-to-eat meals with Sprig. SpoonRocket added that with Sprig's sourcing philosophy around sustainable, organic ingredients and clean cooking techniques, SpoonRocket is confident that customer needs will be well met by transitioning to their service.
In the letter to investors, co-founders Steven Hsiao and Anson Tsui said SpoonRocket had hit an $8 million revenue run rate by the end of 2015 but with the market correction hitting capital-intensive on-demand services hardest, that wasn't enough to bring in more funding.
Hsiao said that it has been challenging raising capital given the market conditions. They explored different strategic options, but deals fell through last minute. With competitors like Sprig, it's a challenging arena for SpoonRocket, given the amount of capital it raised. It was able to raise about $13 million but the food service delivery app is competing with services that have a little more capital. Hsiao graciously exited the business leaving it all to Sprig and its "long-term value for customers."
