GrubMarket, a grocery logistics giant worth $3.5B, has acquired Good Eggs in an all-stock deal, valuing the struggling startup slightly above its previous $22M valuation. Keith Brewer from GrubMarket will lead Good Eggs, which had a $365M valuation in 2020.
Good Eggs was once a promising startup in the fresh food delivery market, valued at $365M in 2020. However, after the COVID-19 boom faded, its valuation plummeted by 94% to just $22M in 2023. The company struggled with profitability, despite having a strong list of investors including Benchmark, Index, and Sequoia.
Founded in 2014, GrubMarket quickly shifted from B2C to B2B, becoming a leader in grocery logistics. The company is now valued at $3.5B and has raised over $560M, with major customers like Whole Foods, Walmart, and Stanford University. GrubMarket’s CEO, Mike Xu, emphasized that "profitability is in our DNA," highlighting the company’s focus on margins and unit economics.
GrubMarket’s acquisition of Good Eggs was an all-stock deal, slightly above Good Eggs’ $22M valuation. Keith Brewer, COO of GrubMarket-owned Daylight Foods, will now lead Good Eggs. While some Good Eggs staff will join GrubMarket, it remains unclear if CEO Rodrigo Arévalo will stay. GrubMarket initially competed with Good Eggs but later supplied it, showing its dominance in the market.
The grocery and food delivery market has seen significant shifts, with startups like Getir retreating to their home markets. GrubMarket’s acquisition spree, with over 80 deals, underscores its strategy to consolidate and expand its B2B operations. Xu described the Good Eggs deal as "optimistic," signaling GrubMarket's potential return to B2C using its vast resources and economies of scale.
How will this acquisition affect the grocery delivery market?
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