Good Eggs, the online fresh food delivery service, will shut down its New Orleans operations Friday, as well as shuttering hubs in Brooklyn and Los Angeles and reducing staff in San Francisco, the company announced Wednesday.
CEO Rob Spiro explained the decision in an online memo: “The single biggest mistake the company made was growing too quickly, to multiple cities, before fully figuring out the challenges of building an entirely new food supply chain.”
The business, which operates as a type of online farmers market, allows customers to place orders online for meat, fresh produce and dairy products from local farmers. The company was founded in San Francisco in 2011, launched New Orleans operations in the summer of 2013 and quickly expanded, moving to newer, bigger digs twice, before settling in at a warehouse space on Earhart Boulevard.
Despite the company’s goal of creating an efficient food supply chain, connecting consumers with producers, Spiro conceded that the model was “…complicated, way more complicated than we ever anticipated.”
Spiro said: “We were motivated by enthusiasm for our mission and eagerness to bring Good Eggs to more people. But the best of intentions were not enough to overcome the complexity. Today we realize that in order to continue innovating in San Francisco, our original market, in order to continue figuring out all the complexity that is required to achieve our mission, we cannot productively maintain operations in other cities…. This is the hardest decision I’ve had to make in my career, but I know it is right for our company and our mission.”
Roughly 140 employees will be laid off as a result of the closures, according to the website techcrunch.com.
Good Eggs New Orleans customers will be able to place their last orders Wednesday, Spiro said in the statement.
A call to a New Orleans representative of the company was not immediately returned but a notice on its website co-signed by founders Spiro and Alon Salant confirmed the local hub would be shutting down effective Wednesday.