Sprig launched in 2013 in San Francisco as a full-stack food delivery service: design the menu, cook in centralized kitchens, deliver via couriers. The food was genuinely good—chefs from top restaurants, locally sourced ingredients, daily rotating menus. The company raised $56M from Greylock and Social Capital.
Company Data
- Founded: 2013 — Gagan Biyani, Neeraj Berry
- Total Funding: $56 million
- Markets: San Francisco, Chicago
- Failed: May 2017
The full-stack model was the problem. Sprig managed menu R&D, ingredient sourcing, kitchen operations, delivery logistics, and customer support. Each layer added cost. The limited daily menu meant customers couldn't order what they craved. Cost per meal exceeded what customers would pay. When Sprig tried to raise more, VCs balked at the crowded food delivery landscape.
Key Lesson
Full-stack models mean full-stack problems. Specialized platforms outperform on each dimension. Sometimes it's better to specialize than to own every layer.