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.

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Sprig

Online app that provided healthy organic meals

General Information
Category
Food and Beverage
Country
United States
Started
In 2013
Business Failure
Business Outcome
Shut Down
Closed
By 2017
Cause of Failure
Competition
Founders & Employees
Number of Founders
Four
Name of Founders
Gagan Biyani, Matt Kent, Morgan Springer, Neeraj Berry
Number of Employees
Between 51 And 100
Funding
Number of Funding Rounds
4
Total Funding Amount
$56.7M
Number of Investors
26
Description

Sprig delivered high-end meals to customers who were looking for healthy and nutritional menu choices.

This meal-based startup provided fast delivery times with low or no fees whenever there was low demand. The company also dominated in terms of quality of ingredients and transparency in the nutritional value. The ingredients were sometimes inspected from the point of origin by the chef so as to ensure that they had the best quality. All the ingredients used for the meals were locally-sourced, sustainable, and seasonal.

Cause of Failure

The on-demand food business was a tough arena to venture in. Sprig tried to handle all elements of the experience, like sourcing, cooking and delivering the food but soon found the whole process time consuming and besides being expensive, it required also a continuous and seamless management and integrated logistics.

Sprig was a delivery only restaurant this meant that they could sometime deliver free of change to the client, but this raised expenses and caused them to have a lower profit margin. They also struggled to pay workers, working premises bills and for the necessary products.

Another downside with delivery-based food services like Sprig was that they did not offer a place where customers could go and have meals, while often a good dining experience and service is what entices people to become repeat customers.

Spring had a shortage of finance to run its business and faced stiff competition from other already established companies such as Seamless, UberEats, Blue Apron and Domino.

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