Venture Backed Food Delivery Startup Zoomer Shutting Down
Startups fail, we all know that. But it really sucks when we find out a startup with so much promise is shutting down. That’s the case for Philadelphia based Zoomer, a food service delivery company. Zoomer faced stiff competition from the likes of Grub Hub and UberEats, as well as the hundreds of localized food delivery startups that are cropping up everywhere.
Zoomer was one of the Philadelphia faves. Founder Justin Goldman and the Zoomer team were always around for Philadelphia startup and tech events and everyone loved them.
The company was able to raise money from DuckDuckGo’s Gabriel Weinberg, First Round Capital, and Y Combinator. Technically Philly reports that StartupPHL and the Philadelphia Industrial Development Corporation were also backers via First Round.
Technically Philly first reported the news that Zoomer may be closing on Friday. They discovered that former head of people operations, Alan Prescott had left the company in January 2017 on his linkedin profile. Prescott had also made a cryptic note on his profile that Zoomer was shutting down in February.
By Monday morning, a string of emails that Zoomer had sent out to delivery drivers and partner restaurants confirmed the writing on the wall.
Although the company was well liked in the Philly startup community, Goldman and his co-founders kept their business close to the vest. For instance, no one knows exactly how many markets they were functioning in. Some suggest the number was close to two dozen.
Zoomer is ceasing operations as of 8am yesterday (Monday), however they were willing to make special arrangements for restaurants that wanted them to function through Superbowl Sunday. In most markets it looks like the service is completely winding down. In Madison Wisconsin and Newark Delaware, Madison based EatStreet will take over Zoomer’s delivery operations.
As of Monday their website says they’ve made millions of deliveries and have over 100,000 downloads of their app. Zoomer offers a “different kind of partner” for high volume restaurants. They make reference to Ubereats as well saying “we only do one thing, deliver your food, and we do it really freaking well”.
For now, customers will have to find their “really freaking well” deliveries, elsewhere.