Maple

What did it do?

Maple was a New York meal service that delivered daily menus prepared in its own kitchens using its own couriers. Unlike platforms that collect orders from restaurants, it ran the whole process itself, from sourcing ingredients to cooking and last-mile delivery; lunch cost USD 12 and dinner USD 15, with tax and tip included in the price.

Why did it shut down?

Launched in Manhattan's Financial District in April 2015, the service aimed to deliver within half an hour using a central prep kitchen and satellite kitchens spread across the city. Owning the entire value chain meant the company had to carry all the costs of sourcing, kitchen staff and couriers. Despite raising more than USD 25 million, the company operated only in Manhattan for two years. In May 2017 the founders said that, to think bigger, they needed to close the New York operation and look for a partner with scale. On 8 May 2017 Maple stopped taking orders; part of the team joined London-based Deliveroo and its technology was transferred to Deliveroo.

The story

Maple was founded in New York by Caleb Merkl and Akshay Navle and launched in Manhattan's Financial District in April 2015. Behind it was the backing of the celebrated chef David Chang, founder of the Momofuku restaurant group. Chang's name strengthened the service's promise to bring fresh food prepared by some of the city's best culinary names to the door.

What set Maple apart from its rivals was that it did not source the food from anyone else. The company sourced its own ingredients, did the prep in a central kitchen, finished the dishes in satellite kitchens in different parts of the city and delivered them with its own couriers. Each day it offered three lunch and three dinner options, one of them vegetarian. Lunch cost USD 12 and dinner USD 15, including tax, tip and delivery fee. The founders argued that, to deliver the experience they wanted, they had to own the whole process, from ingredients to the last mile.

The company raised more than USD 25 million and was soon delivering thousands of meals a day across Manhattan. But after two years it was still in a single city, and the model of owning the entire value chain made growth expensive. In their statement in May 2017, the founders said that, to think bigger, they needed to close the New York operation and look for a partner with scale.

On 8 May 2017 Maple stopped taking orders. Some members of the team moved to London-based Deliveroo, and Maple's technology was transferred for use in Deliveroo Editions, a project that let restaurants reach new areas without opening physical branches. Maple became one of the examples showing how vertical integration in food delivery can raise quality while making scaling far harder.

Lessons for founders

• In a food model that owns the entire value chain, every new neighbourhood means new kitchen and courier costs; do not scale up investment before proving unit economics in a single area.
• A celebrity chef's backing creates brand interest but does not guarantee repeat orders; move forward on data that measures loyalty.
• When you see you cannot reach scale on your own, talking early to a big player that can make use of your technology and team can lead to a better outcome than shutting down from scratch.

Sources

1. Food startup Maple shuts down operations in New York to join Deliveroo (TechCrunch, 2017-05-08)
2. Popular NYC Food Delivery App Backed by David Chang Shuts Down (NBC New York, 2017-05-08)
3. Maple Launches In NYC's Financial District With A Fresh Approach To Food Delivery (TechCrunch, 2015-04-28)

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