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The online food and market manner of speaking blank is seeing more consolidation . TechCrunch has learned and confirmed thatGrubMarket , the startup that has quietly built a B2B empire in green groceries and market logistics and is now valued at $ 3.5 billion , has acquiredGood Eggs , a once - fete fresh intellectual nourishment delivery startup that has fallen on hard times lately .
The fiscal terminal figure of the flock are not being disclosed , but sources with knowledge of the heap enjoin TechCrunch that it was an all - stock transaction that valued Good Eggs slightly high than its previous rating of $ 22 million . The informant also order Good Eggs ’ investors proactively approached GrubMarket looking for an loss .
TechCrunch has also affirm that Good Eggs will be run by a new drawing card under GrubMarket : Keith Brewer , who was the COO of GrubMarket - possess Daylight Foods , will channelize Good Eggs . While a phone number of Good Eggs ’ staff are expected to come over to GrubMarket , it ’s not yet clear whether Rodrigo Arévalo , the Uber alum who is currently listed as Good Eggs ’ chief executive officer , will be stay put on .
This is a pretty major bend for Good Eggs , and it serves as one more signal of how investors , who pumped 100 of 1000000 of one dollar bill into forever loss - making startups , are now attend to take up a billet under those body process and move on .
dependable Eggs , for context , was respect as in high spirits as $ 365 million in November 2020 , per PitchBook data ( a round it announced in2021 ) , and had a vaunted investor tilt that included Benchmark , Index , Sequoia and Thrive , among many others . But as the COVID-19 tailwind faded , it hit the rock-and-roll and was eventuallymarked downa whopping 94 % last year , landing it at that $ 22 million valuation .
GrubMarket , meanwhile , is now valued at around $ 3.5 billion and has fire over $ 560 million in support from various backers that include Tiger Global . Its $ 3.5 billion valuation was reported byCNBCearlier this year .
GrubMarket ab initio competed with Good Eggs but eventually started supplying the inauguration . The change nature of that family relationship may well provide a windowpane into why some company succeed in the grocery logistics and livery space and some do not .
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Good Eggs and GrubMarket launch in 2011 and 2014 , respectively , with a focus on B2C , specifically delivering boxes of fresh intellectual nourishment to consumer and business enterprise . But subsequently , as Good Eggs keep its eyes on consumer , GrubMarket pivoted to concentrate on the B2B chance , and it scaled tight to work with smaller grocer as well as major ones .
Whole Foods is GrubMarket ’s big customer . It also supplies groceries and other items to major section stores like Walmart , as well as to other big names like Stanford University . With a pretty unrelenting eye on margins , building block economics , KPIs and long relationships with suppliers , GrubMarket has been profitable for some time .
“ lucrativeness is in our DNA , ” GrubMarket CEO and founder Mike Xu said . “ We have a go at it how to get things profitable . It ’s a taxonomic approach . ”
Xu added that the company ’s focusing remains on B2B — it has made more than 80 acquisition , most of which bolster that business enterprise — but acquisitions like Good Eggs underscore how it could habituate its economies of scale to revisit B2C. Still , Xu described the batch as “ optimistic ” rather than timeserving .
Grocery and food delivery startups have faced a lot of ups and down feather , and some category have been hit pretty hard . Getir , a major player in “ instant ” grocery store livery that sharply enhance hundreds of millions of dollars ( from some of the same backers as Good Eggs , as it happens ) , sooner this yearcut its red and pull in one’s horns to its home marketplace of Turkey . Other startups arestrugglingto call down at strong valuations while a few like GrubMarket are wreak consolidator to improve their cost structures . U.S.-based Instacart is due to announce its 2d - tail results today , which could try a bellwether for other companies in the quad .
