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| Company | Munchery | Sprig |
|---|---|---|
| Category | Meal Kit Subscription | Meal Kit Subscription |
| Founded to closed | 2010–2019 | 2013–2017 |
| Outcome | Shut Down | Shut Down |
| Cause | Munchery never solved its underlying operational economics: the company wasted an average of 16% of the food it produced, and years of reinventing its model, from ready-to-eat meals to meal kits to an $8.95-a-month subscription plan to a walk-up shop inside a San Francisco BART station, never fixed the core cost structure. CEO James Beriker later cited increased competition, over-funding relative to actual demand, aggressive expansion, and Blue Apron's failed 2017 IPO souring investor sentiment toward the whole meal-delivery category as reasons for the collapse. After retreating from Los Angeles, New York, and Seattle in 2018 and failing to close a final funding round, Munchery shut down abruptly in January 2019, leaving vendors and gift-card holders owed roughly $6 million. | Sprig's fully vertically integrated model, owning meal sourcing, cooking, and delivery all at once, proved far more operationally complex and expensive to scale than the company anticipated, and it never established a path to profitability, burning around $850,000 a month in its final stretch. The arrival of Uber's deep-pocketed, aggressively subsidized UberEats service intensified competition just as Sprig was already struggling, and the company was forced to retreat from markets outside San Francisco, including pausing service in Chicago in mid-2016. Unable to find a buyer for the business, Sprig shut down on May 26, 2017. |
| Location | San Francisco, USA | San Francisco, USA |