SpoonRocket failure

SpoonRocket

Next-gen, ultra-fast delivery platform

Description

SpoonRocket was a pre-made food delivery service with a team of chefs that produced a limited selection of healthy affordable meals each day. Customers could order an $8 meal from SpoonRocket through the company’s app or through their site. The drivers then picked up the meals, stored them in warming cases specifically designed to be inside the delivery cars and got ready to deliver the food to customers within 15 minutes of their order.

Stats

Category
Food and Beverage
Country
United States
Started
In 2013
Closed
By 2016
Number of Founders
Two
Name of Founders
Anson Tsui, Steven Hsiao
Number of Employees
Between 11 And 50
Number of Funding Rounds
2
Total Funding Amount
$13.5M
Number of Investors
9
Precise Cause of Failure
Competition
Business Outcome
Shut Down

Cause of Failure

SpoonRocket hyper focused on customer acquisitions but when their finances started going down they failed to fundraise aggressively in order to stay afloat.

One of the greatest challenges they faced was intense competition from other companies offering similar services. The on-demand market was particularly crowded in the food delivering space, hence they had to compete in an already saturated market where the differentiating factor was poor.

On-demand startups rely on the contact with the consumers and the perception they have of the company, SpoonRocket failed terribly at creating trust and loyalty into their customer base. Their drivers were late on deliveries, which led to dissatisfaction to customers which ended up giving them bad reviews. Furthermore, SpoonRocket’s focus was on speed and low prices rather than cooking and that might have impacted their overall direction and downfall.

Go on Reading

Other Startups

LuckyUnicorn t-Shirts
We've just launched 20 limited edition Failory t-shirts. Click here to buy one!

Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

SpoonRocket

Next-gen, ultra-fast delivery platform

General Information
Category
Food and Beverage
Country
United States
Started
In 2013
Business Failure
Business Outcome
Shut Down
Closed
By 2016
Cause of Failure
Competition
Founders & Employees
Number of Founders
Two
Name of Founders
Anson Tsui, Steven Hsiao
Number of Employees
Between 11 And 50
Funding
Number of Funding Rounds
2
Total Funding Amount
$13.5M
Number of Investors
9
Description

SpoonRocket was a pre-made food delivery service with a team of chefs that produced a limited selection of healthy affordable meals each day. Customers could order an $8 meal from SpoonRocket through the company’s app or through their site. The drivers then picked up the meals, stored them in warming cases specifically designed to be inside the delivery cars and got ready to deliver the food to customers within 15 minutes of their order.

Cause of Failure

SpoonRocket hyper focused on customer acquisitions but when their finances started going down they failed to fundraise aggressively in order to stay afloat.

One of the greatest challenges they faced was intense competition from other companies offering similar services. The on-demand market was particularly crowded in the food delivering space, hence they had to compete in an already saturated market where the differentiating factor was poor.

On-demand startups rely on the contact with the consumers and the perception they have of the company, SpoonRocket failed terribly at creating trust and loyalty into their customer base. Their drivers were late on deliveries, which led to dissatisfaction to customers which ended up giving them bad reviews. Furthermore, SpoonRocket’s focus was on speed and low prices rather than cooking and that might have impacted their overall direction and downfall.

Go on Reading

Brisk

Built tools for sales organizations

Marketing
Shut Down
$137K
Lack of Focus
Marketing
Sweden
In 2012
By 2016
Four
Between 11 And 50
Less Than 1M
Lack of Focus
Shut Down
Crowdmix

Music streaming and sharing platform

Music
Acquired
£14M
Mismanagement of Funds
Music
United Kingdom
In 2013
By 2016
Two
Between 101 And 250
Between 10M 50M
Mismanagement of Funds
Acquired
Wantful

Online gift-giving service

e-Commerce
Shut Down
$5.5M
Competition
e-Commerce
United States
In 2011
By 2013
One
More Than 10000
Between 1M 10M
Competition
Shut Down
Digg

Enables users to share interesting stories

Social Media
Still Active
$49M
Competition
Social Media
United States
In 2004
Active
One
Between 51 And 100
Between 10M 50M
Competition
Still Active
Flowtab

Mobile app to order drinks on nightclubs

Food and Beverage
Shut Down
-
Bad Business Model
Food and Beverage
United States
In 2011
By 2013
One
Between 51 And 100
Nothing
Bad Business Model
Shut Down
Vine

Platform to share short looping video clips

Social Media
Shut Down
No Data
Multiple Reasons
Social Media
United States
In 2012
By 2017
Three
Between 51 And 100
No Data
Multiple Reasons
Shut Down