After Ups and Downs, Epicery Food Delivery Startup Closes Shop
French food delivery startup Epicery has announced that it will cease operations after nearly nine years of serving the local food and grocery delivery market. Despite its efforts, the startup was unable to overcome financial challenges, including inflation, which impacted its customer base and led to significant losses.
Epicery’s Closure Due to Financial Struggles and Market Changes
Epicery, which focused on delivering premium groceries and local food products in major cities like Paris and Lyon, faced mounting financial difficulties. The company reported a negative EBITDA of -€4.69 million in 2023, with sales of just €2.57 million. Despite scaling back its operations and reducing its expansion, Epicery could not escape the financial pressures.
The closure comes after months of challenges, which were further worsened by inflation that made customers rethink their food spending habits. Epicery’s decision to cease operations marks the end of an era for a startup that once thrived during France’s COVID-19 lockdown.
Geopost’s Investment and the Breakdown of the Partnership
In late 2021, Geopost, the parcel delivery arm of Groupe La Poste, took a majority stake in Epicery in hopes of bolstering the startup’s growth. However, after an in-depth review of Epicery’s performance, Geopost decided to part ways with the startup. Geopost’s analysis revealed that Epicery’s financial troubles and the competitive landscape in the food delivery sector left little hope for profitability in the near future.
The Changing Food Delivery Market: Epicery’s Struggles in a Competitive Landscape
When Epicery was founded in 2016, the food delivery market in France was in its infancy. Over the years, however, the market has changed dramatically. Competitors like Deliveroo and Uber Eats emerged as dominant players, while quick-commerce services like Cajoo, Flink, and Gopuff also entered the space. These developments made it increasingly difficult for smaller players like Epicery to compete.
Despite this, Epicery had a loyal customer base of 25,000 recurring users and partnerships with 1,100 local shops. However, as a VC-backed company, it needed more than just a niche market to sustain its operations. Its modest scale could not compete with larger players in the space, particularly after Geopost cut its ties.
Epicery’s Legacy: Helping Local Businesses Embrace E-commerce
While Epicery’s closure is a setback, its impact on local businesses cannot be ignored. The platform played a significant role in helping local retailers transition to e-commerce and grow their online presence. Co-founder Édouard Morhange expressed pride in Epicery’s contribution to digitalizing the local food industry, and many of the businesses it worked with will continue to expand their digital sales in the future.
What Lies Ahead for Epicery’s Employees and the Future of Food Delivery
Despite the closure, Morhange is not stepping away from the food industry. He is already working on new initiatives aimed at continuing the digital transformation of the food sector both in France and internationally. Geopost has also pledged to help Epicery’s employees find new roles within the group or assist them in their job search.
Epicery’s Failure Reflects the Challenges of the Food Delivery Industry
Epicery’s closure serves as a reminder of the volatility in the food delivery industry. Rising competition, changing consumer preferences, and economic factors like inflation have made it increasingly difficult for startups to thrive. While Epicery could not make the numbers work, its story is a valuable lesson for other startups seeking to navigate the complex landscape of the food delivery market.
Learn More About Epicery’s Challenges and the State of Food Delivery in France
If you want to explore more about Epicery’s challenges and the current state of the food delivery market in France, here are some additional resources:
