Breaking into the online grocery business has never been easy, and that prospect is even more daunting today with a collection of well-known and cash-rich players dominating the rapidly growing space. E-grocery startups can’t match Amazon or Walmart for sheer breadth of inventory; but a limited assortment of high-quality, lesser-known brands also can be a very effective tactic. And Brandless, which entered this field in July, is expanding its footprints by offering consumers a limited collection of private label products at a single $3 price point.
Movebutter is one of dozens of grocery and food brands aiming to grab their own chunk of the $627 billion Americans spent last year on groceries. With new business models and unique offerings, brands like Brandless, Thrive Market, HelloFresh and Halo Top are challenging traditional packaged-goods brands and retailers.
For the past several years, food delivery has been a hot sector in Silicon Valley. Startups know we need sustenance and that technology has made us too lazy to want to leave our homes to buy it. But 2017 has introduced serious headwinds to the food-delivery craze. Blue Apron has struggled to woo investors since its June IPO and recently laid-off hundreds of workers. Delivery-only restaurant Sprig shut down in May, while competitor Munchery has also faced cutbacks. Have startup founders misjudged the way people want to buy and eat their food?
The big winners of this global tech firm’s move are likely to be small local restaurants. It’s called “Deliveroo Editions,” and it is Deliveroo’s first foray into another part of the food supply chain. Here is how it works: Deliveroo builds its own kitchen facilities, and then it invites local restaurants to operate a station on those premises, food can then be delivered quickly from that location.
Tovala, which makes an internet-connected smart kitchen appliance and an accompanying meal delivery service, announced that it has acquired Radish. . The company raised $2 million in venture funding, delivering 100,000 meals in Chicago before halting operations late last year. The acquisition will help Tovala expand its menu, reach new customers and internalize the institutional knowledge Radish built up while in operation.
A crop of new startups are trying to bring meal kit delivery, subscription services, and a tech approach to the mashed-up foods parents have fed their children for millennia. Baby food entrepreneurs are quick to say they’re disrupting a $55 billion industry. And the reason they’re convinced it’ll work? Millennial parents. Little Spoon, which launched in April, is the first baby food startup to move beyond home delivery. The startup is offering a new Blueprint service that has parents fill out health information about their children and designs a customized nutrition plan.