SpoonRocket shuts down
techcrunch.com
SpoonRocket shuts down
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Re: SpoonRocket shuts down
#2The company had actually reached contribution margin positive — it was selling meals for more than it cost to cook them. But due to other costs and the frosty fundraising climate, wasn’t able to get the money it needed to continue operating.
Am I reading this correctly, and the business metric this company managed to achieve is simply "selling food above cost", like every deli and diner in the country does? Or is the article instead suggesting that they were profitable after all logistics costs?
Re: SpoonRocket shuts down
#3SpoonRocket actually had the most decent meals I'd seen out of any of the healthy food delivery apps and the most options. Just discovered it a week or two ago and this news is incredibly dissapointing.
Re: SpoonRocket shuts down
#4The company had actually reached contribution margin positive — it was selling meals for more than it cost to cook them. But due to other costs and the frosty fundraising climate, wasn’t able to get the money it needed to continue operating. Am I reading this correctly, and the business metric this company managed to achieve is simply "selling food above cost", like every deli and diner in the country does? Or is the…
I'm pretty sure you are, that's serious bubble talk
"But due to other costs" < aka paying for people, the website, the delivery, marketing, etc?
Re: SpoonRocket shuts down
#5The company had actually reached contribution margin positive — it was selling meals for more than it cost to cook them. But due to other costs and the frosty fundraising climate, wasn’t able to get the money it needed to continue operating. Am I reading this correctly, and the business metric this company managed to achieve is simply "selling food above cost", like every deli and diner in the country does? Or is the…
The former. The logistics/overhead costs were what damned them.
Re: SpoonRocket shuts down
#6Was SpoonRocket still having issues with the National Labor Relations Board or were those resolved?
Re: SpoonRocket shuts down
#7The company had actually reached contribution margin positive — it was selling meals for more than it cost to cook them. But due to other costs and the frosty fundraising climate, wasn’t able to get the money it needed to continue operating. Am I reading this correctly, and the business metric this company managed to achieve is simply "selling food above cost", like every deli and diner in the country does? Or is the…
The former. The logistics/overhead costs were what damned them.
Just as well they worked that out after burning through only $13.5M in funding, and not after the IPO.
Re: SpoonRocket shuts down
#8Well, this sucks, I've been really enjoying my VC-subsidized services.
Re: SpoonRocket shuts down
#9The company had actually reached contribution margin positive — it was selling meals for more than it cost to cook them. But due to other costs and the frosty fundraising climate, wasn’t able to get the money it needed to continue operating. Am I reading this correctly, and the business metric this company managed to achieve is simply "selling food above cost", like every deli and diner in the country does? Or is the…
"contribution margin positive" ought to win a creative writing award.
Re: SpoonRocket shuts down
#10The company had actually reached contribution margin positive — it was selling meals for more than it cost to cook them. But due to other costs and the frosty fundraising climate, wasn’t able to get the money it needed to continue operating. Am I reading this correctly, and the business metric this company managed to achieve is simply "selling food above cost", like every deli and diner in the country does? Or is the…
I would guess that the customer-acquisition costs alone are way higher than the food itself...