For the last three years, the Berkeley, California-based startup delivered a rotating selection of carb-heavy comfort foods to your door in under 15 minutes. That speed couldn't save it. The company on Tuesday said it's closing up shop. Too much competition and too little cash made it impossible to keep going.
Goodbye, $8 pulled-pork smoked Gouda mac 'n cheese, a recurring customer favorite. I'll miss you.
Brazilian-based iFood reportedly bought SpoonRocket for its delivery tech. The company didn't respond to a request to confirm the acquisition.
SpoonRocket is only the latest on-demand startup to fall on hard times. Earlier this month, Instacart said that it's slashing the pay of people who deliver store-bought groceries to customers. In February, on-demand parking valet Zirx closed its doors, while food delivery startup DoorDash had to lower its own value to raise more funds.
On-demand companies have defined this decade's tech boom. Ride-sharing companies like Uber and Lyft and delivery apps like Instacart have made patience an overrated virtue. They've also caught the attention of venture capitalists, who have poured more than $9 billion into those three companies alone.
This is being taken out of context, IMO. This is the culling of the startups that have not made the grade as much as anything, to be sure, but its timing is interesting. The VCs are pulling in their horns. Silicon Valley workers are reportedly rather nervous. Others are stating they are expecting an economic down turn. The business cycle might be turning, guys. No 'boom' goes on forever.