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.
SpoonRocket hyper focused on customer acquisitions, but when their financial situation declined, 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.