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.

Take Eat Easy

Restaurants delivered to your door

General Information
Category
Food and Beverage
Country
Belgium
Started
In 2013
Business Failure
Business Outcome
Bankruptcy
Closed
By 2016
Cause of Failure
Competition
Founders & Employees
Number of Founders
Four
Name of Founders
Adrien Roose, Chloé Roose, Jean-Christophe Libbrecht, Karim Slaoui
Number of Employees
Between 101 And 250
Funding
Number of Funding Rounds
3
Total Funding Amount
€16.4M
Number of Investors
5
Description

TakeEatEasy came into the on-demand food market with the purpose of enabling quality restaurants to provide a reliable delivery service for their customers. Their job was to align supply and demand in time and space by automatic optimization and dispatching of orders to couriers and restaurants. TakeEatEasy provided a deep integration in restaurant operations thanks to their app which customers to order dishes online, change prep time order and cancel orders. The TakeEatEasy app connected customers with reputable restaurants and delivered meals to the customer’s doorstep under one hour.

Cause of Failure

One of the main problems that TakeEatEasy, as many other startups in the sector, experienced was related to capital and profit. For one, the food delivery business is especially cash demanding. The contribution margin they were able to make was not high enough to cover the fixed operational costs and the company was not able to raise a third round of funding that would have added up to the existing capital and push them till the break-even point. After signing a financing term sheet with a French state-owned logistics group, their board rejected the deal and withdrawn their offer leaving the company without a backup plan.

The competition was another factor as they were up against direct competitors of the likes of Deliveroo, UberEATS and Delivery Hero’s Foodora. In addition to that, one of their main investors ended up acquiring and aggressively investing in a direct competitor. Rocket Internet, who was the main competitor to TakeEatEasy, also invested in Delivery Hero’s Foodora. Rocket internet now owned two direct competitors to TakeEatEasy, which didn’t leave space for a balanced competition. The company tried sourcing for investors but the competitive market failed them and VCs turned them down.

Go on Reading

Secret

Online platform to share personal secrets

Social Media
Shut Down
$35M
Legal Challenges
Social Media
United States
In 2013
By 2015
Two
Between 11 And 50
Between 10M 50M
Legal Challenges
Shut Down
Sidecar

Provided B2B delivery transportation network

Transportation
Acquired
$45.5M
Competition
Transportation
United States
In 2011
By 2015
Two
Between 51 And 100
Between 10M 50M
Competition
Acquired
37Coins

Startup that developed Bitcoin technologies

Finances
Shut Down
$525K
Lack of Funds
Finances
United States
In 2014
By 2015
Three
Between 1 And 10
Less Than 1M
Lack of Funds
Shut Down
Aria Insights

Air vehicles for search and rescue missions

Software and Hardware
Shut Down
$39M
Multiple Reasons
Software and Hardware
United States
In 2008
By 2019
One
Between 11 And 50
Between 10M 50M
Multiple Reasons
Shut Down
Karhoo

Cab aggregator and price comparison tool

Transportation
Acquired
$39M
Poor Product
Transportation
United Kingdom
In 2014
By 2016
One
Between 51 And 100
Between 10M 50M
Poor Product
Acquired
Transpose

Smart workspace for businesses to manage projects

Productivity
Shut Down
$1.5M
Bad Business Model
Productivity
United States
In 2015
By 2015
Four
Between 11 And 50
Between 1M 10M
Bad Business Model
Shut Down