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Gourmet food delivery service Maple goes under after punishing losses

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The harsh economics of the food delivery business merely claimed another victim.

Maple, the gourmet delivery service backed by celebrity cook David Chang, told clients it’s shutting down on Monday after two years of operation in New York.

Co-founders Caleb Merkl and Akshay Navle said the decision was reached “after several months “ve been thinking about” the future of our business.”

“The most compelling next step in Maples story involved a switching from our present approaching, ” they wrote in a tone posted to the site.

That “shift” will send much of the company’s top staff in the various regions of the pond to join London delivery startup Deliveroo. Meanwhile, the Maple brand will cease to exist.

The high-end startup opened its doorways in 2015 with backing from cooks like Chang, “the mens” behind the wildly successful Momofuku restaurants.

Maple had a fixed lunch and dinner menu of dinners that on-demand messengers would deliver around the city.

But throughout its first year, the company lost fund on each meal on average, according to investor documents divulged to Recode . While the it managed to eke out a 30 -cent-per-meal profit by March of 2016, operating losses for its first year were still pegged at around $16 million.

Maple is only the latest of its ilk to fall behind the penalise perimeters of the food delivery business simulate. Small-scale startups like Spoonrocket, Din, and Bento have all shut their doorways in recent months as tournament in the room remains fierce.

Even bigger calls like Postmates and DoorDash have striven stay afloat with recent funding rounds that failed to inflate their valuations.

Read more: http :// mashable.com /

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