📉 Epicery Faces Financial Reality
Epicery, a French food delivery startup, will close operations on January 2, 2025. The decision follows years of mounting losses, including a negative EBITDA of $5.0M in 2023. With sales of only $2.7M, inflation and competition from giants like Uber Eats left the startup struggling. Epicery’s 25% commission model and focus on premium groceries couldn’t offset shrinking customer spending during tough economic times.
📈 From Lockdown Boom to Market Bust
The COVID-19 pandemic gave Epicery a temporary boost. Lockdowns drove demand for local food deliveries, attracting Geopost’s majority stake acquisition in 2021. However, the food delivery landscape shifted post-pandemic. Competitors like Cajoo and Flink faltered, and consumer habits returned to in-person shopping. Geopost’s recent exit from Stuart, Epicery’s logistics partner, further weakened the business.
🤝 Mixed Legacy in Local Retail
Epicery once drove 10–20% of sales for 1,100 local shops in Paris and Lyon. Co-founder Elsa Hermal said the startup delivered on its promise to boost small businesses' digital presence. Despite scaling back from national expansion, Epicery maintained a loyal customer base of 25,000. This local focus made it unique but less viable as a VC-backed or large-group subsidiary.
🔮 What’s Next for Epicery’s Team?
Co-founder Édouard Morhange plans to launch a new digital food initiative. Geopost has promised to assist Epicery’s employees in finding new roles within the company or elsewhere. Nicolas Machard of Pourdebon, another Geopost-backed food delivery service, expressed optimism for Epicery’s workforce. The startup’s closure may inspire future models combining local commerce with logistics innovation.
Could local-first delivery startups thrive again?
