Food-delivery services are finding that the days of free lunch are over – and very few of them can cover the bill, Alison Griswold reports for Quartz. In San Francisco, the company Munchery is losing as much as $5 million a month, while Sprig shut down on May 26 despite $60 million of investment over its lifespan. Griswold points out that these casualties may be symptoms of a larger trend: Countless start-ups across industries, including ride-hailing service Uber, have attracted large customer bases by offering discounts subsidised by venture capital. When the capital runs out, those new business models may start to look a lot less innovative.
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