Good Eggs shuttering operations in three cities, laying off 140 employees

Good Eggs, a farm-to-table food startup, is dramatically downsizing, a reminder that this time of plenty in Silicon Valley is not without its shortcomings.

And Good Eggs has admitted to those shortcomings, which helped contribute to the shut-down of much of its operations. The company said in a blog post on its website it will close operations in Los Angeles, Brooklyn and New Orleans, leaving only its San Francisco headquarters, where it will reduce staff.

“What we didn’t fully understand when we started was that we were creating a new category that required a different approach to supply chains, logistics, and commerce — all of the pieces of getting food from local producers to the kitchens of our customers,” the company said. “It was, and is, complicated, way more complicated than we ever anticipated. We have learned so many lessons, many of them learned ‘the hard way’ by making mistakes and seeing the consequences.”

About 140 employees will be laid off.

“The single biggest mistake we made was growing too quickly, to multiple cities, before fully figuring out the challenges of building an entirely new food supply chain,” the company said. So it’s scaling back to San Francisco, to see if it can survive in its original market.

The company also laid off 15 percent of its workforce in January.

Good Eggs allows customers to go online and buy produce, meats, dairy products, flowers and other products from local farms, as well as prepared foods and specialty snacks and drinks such as kombucha. The startup handles packaging and delivery to customers.

The company was founded in 2011 and had raised a respectable amount of cash — nearly $53 million — from investors, with a Series C as recently as November.

Image: Good Eggs logo from company website

 

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  • Chuy Mamang

    New way to do things!?!? You mean…Farmer’s Markets somehow didn’t register with these people? As far as I could tell, they wanted to do what your good ole Farmer’s Markets did BUT…they wanted to yuppify it (charge hella $$$ to lazy techy types who don’t know how to prepare food) LOL!!! Bad idea…Had to GO.

  • sd

    Chuy, the difference is that Good Eggs *delivered* these goods to multiple locations. That’s a *much* more complicated process than bringing a bunch of crates to one location for cash sales. There’s receivables, what to do when no one is around for the delivery, …. totally different deal. It was a good idea; I hope they get a chance to rethink it and try it again.

 
 
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