Morning Report: With grocery delivery heating up, Good Eggs raises $50 million in new funding.
Good Eggs, a meal kit delivery service, announced today that it has raised $50 million in a round led by Benchmark with participation by previous investor Index Ventures and others. According to Techcrunch, the funding represents a sign of recovery for the company, which closed its Bay Area operations in 2015 as it brought on a new CEO.
Good Eggs has raised a known total of more than $65 million, according to Crunchbase, including a Series B in 2016 led by Index Ventures.
According to its press release, the company has expanded its food and beverage product offerings and added same-day delivery to its subscription service. It also announced that with its new funding the company will focus on greatly increasing its capacity in the Bay Area, with plans to launch in Southern California in 2019.
This news comes as the increasingly crowded grocery delivery service industry heats up, as Target, Amazon, Walmart, and Instacart battle it out in the space.
Amazon announced its $13.7 billion Whole Foods acquisition in June 2017, expanding its subscription-based grocery delivery model. Instacart, which partners with grocery retailers for same day delivery, has raised a known total of $1 billion to take on Amazon. Meanwhile, Target acquired Instacart competitor Shipt for $550 million in December 2017. Retail giant Walmart reportedly ended its delivery partnerships with Uber and Lyft in early May 2018, but the retail giant still partners with Postmates and DoorDash in its grocery delivery efforts.
In this crowded space, Good Eggs sets itself apart from other retailers by focusing on sourcing products from local farmers and producers. In any case, the round represents the willingness for investors to direct funding to companies attempting to solve city dwellers’ obsession with (low cost and immediate) delivery. With its repositioning and unique approach, maybe Good Eggs will survive against its deep-pocketed competitors.
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