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West Coast Meal Delivery Service Sprig Shuts Down

The company had its own kitchens and drivers and typically had a quick turnaround for delivery

Sprig, a West Coast-based meal delivery company, has recently closed its doors only days after introducing a new spring menu. Sprig’s demise follows that of Maple, another delivery service that abruptly shut down in May.

Customers received a note breaking the news from Gagan Biyani, chief executive officer at Sprig, who explained that “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,” The Information reported.

Although the company raised more than $56 million from investors, Sprig was unable to uphold a sustainable business and was losing approximately $850,000 each month, according to Fortune. The company also had to cut back on its services, leaving San Francisco as its only market.

However, some food delivery services — primarily those that connect consumers with restaurants rather than preparing food themselves — are reportedly thriving, with Grubhub Inc. making $13.6 million in profit on $137.5 million in revenue in 2016.

To read about how your meal kits might not be safe after all, click here.

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