Good Eggs – the promising start-up that enables you to order local, sustainable farm-fresh food directly to your door – announced today that they are closing down operations in Brooklyn, Los Angeles and New Orleans. They will continue to offer their service in their home base of San Francisco, albeit with a reduced staff. In an email to customers, and in a post on the company’s blog, Good Eggs CEO Rob Spiro explained that final orders for the three cities will be processed this evening, August 5th, and the last day of business will be August 7th.
Good Eggs launched in San Francisco some four years ago, with a fundamental plan to combine access to the healthy local goods one might find at a farmers market with the online shopping experience provided by companies such as Fresh Direct. In 2013, the company expanded first to Brooklyn, then New Orleans, before later adding Los Angeles to their market. In early June, the company announced plans to begin service in Manhattan. But this rapid expansion appears to have been a source of their problems.
In a statement, CEO Rob Spiro explained: “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. 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.”
So, in order to maintain, and ultimately grow their operations in San Francisco, Good Eggs is radically downsizing in the short term. This morning around 140 employees were informed that they are being laid off, while vendors who sell their produce through Good Eggs are reportedly “heartbroken.”
Representatives of Good Eggs were “unavailable” for comment.