Brooklyn startup Fridge No Extra is elevating $ 15 million for a 15-minute grocery supply service
The secret to fast food delivery is to focus on the spot, said company Pavel Danilov‘s founder and CEO. Fridge No More couriers never travel more than a mile from either company‘s two storage locations.
The approximately 3,000 square meter warehouses are optimized with customized software and a limited selection of items to help order pickers pack orders placed through the company‘s app, in five minutes or less. All 30 workers at Fridge No More are salaried employees, not gig workers, Danilov said.
“Customers can place an urgent order with us – you don’t‘I don’t have any pepper or lemon – and we don’t get dressed‘t have a minimum order size so we can do that, ”said Danilov.
Many of those customers then return for larger orders, he said. He declined to disclose the company‘s exact number of customers, but he said there are a few thousand, with orders averaging a little less than $ 50.
Grocery delivery has long been a tricky business in New York. Walmart tried and discontinued its jet service in 2019. Two decades earlier, Kozmo, Urbanfetch and other companies offered fast delivery of various goods but went out of business.
However, the online grocery delivery market has grown significantly during the Covid-19 pandemic. Online grocery sales rose 54% to $ 95.8 billion last year, according to eMarketer, a research firm that expects the market to exceed $ 100 billion this year.
Fridge No More competes with Doordash, Instacart and FreshDirect, which were recently acquired by Ahold Delhaize, a Dutch food company whose holdings include Stop & Shop.
According to Jeff Lieberman, CEO of Midtown, Insight Partners relies on Fridge No More because of its local focus and ability to attract repeat customers. The venture company previously supported HelloFresh, Shopify and Twitter.
Sandalow said he stayed after being impressed with the service on his first try. He used Fridge No More orders to complement bodega stops and Instacart purchases.
Working with Insight, Fridge No More plans to add delivery centers across the city before attempting to expand the rest of the east coast.
The company also plans to add menu options, including those from Brooklyn food manufacturers.
“We want to grow quickly,” said Danilov. “The market is really attractive and the demand is there.”