In what’s becoming an ultra-hot market for food delivery, Spoonrocket wants to corner the market by providing high-quality meals delivered to your door in minutes — all for just $8 each, with no delivery fee. To make that happen, it has confirmed an $11 million round of Series A funding and an expansion of its lunch service throughout San Francisco.
Launched last summer in Berkeley and Emeryville, SpoonRocket has taken a unique approach to solving food preparation and delivery. It offers a limited number of menu items, priced at $8 apiece, which are stored in specialized heating equipment that is stored in the delivery vehicle.
Since meals are already with the drivers, and since those vehicles are constantly on the go, Spoonrocket can typically deliver its food to customers in less than ten minutes, and sometimes much quicker than that. (I’ve had Spoonrocket deliveries arrive literally three minutes after placing an order.)
That type of convenience — and value — has led to good traction in its initial market in the East Bay, as well as in San Francisco, where it launched lunch service in February. And, well, traction begets investors.
Last month, we reported Spoonrocket had raised $10 million in funding from Foundation Capital and General Catalyst. Well, it turns out the final amount was actually $11 million, but we got the investors right, with Foundation and general partner Paul Holland leading the Series A investment.
According to co-founder and CEO Steven Hsiao, Spoonrocket plans to use the funding to improve its product, build out its team, optimize its software, and work on improving its logistics.
It’s also expanding to make its lunch service available throughout all of San Francisco, rather than just a few select neighborhoods. Beginning in June, it will serve both lunch and dinner in both markets. And within the next two to three months, it expects to begin making meals available in parts of the South Bay.
There are other changes, most notably in its menu items. Spoonrocket recently added new chef Barney Brown, who had previously worked at The Rotunda At Neiman Marcus. And it has added salads and smoothies to its menu, instead of cookies and sweets as additional items.
All that said, Spoonrocket has plenty of competition for food delivery in the San Francisco Bay Area — there’s Sprig, which also just raised money, Postmates (ditto), and Caviar (them too)… Not to mention legacy incumbent Grubhub, which just went public.