What’s Good Eggs? Good Eggs is more than a meal delivery service. It’s also a grocery store. It delivers fresh, locally sourced, sustainable food, often with same-day delivery throughout the Bay Area.
The company was founded in 2011 with a mission to replace the old grocery store model. They have strict sourcing standards in place. Even better, 70% of the produce they source is local.
Good Eggs doesn’t make you guess about the quality of the product you’re getting with them. The products on offer are decidedly organic and high quality. They work with trusted brands, who built a reputation for themselves over the years by selling great produce. This helps Good Eggs source healthy ingredients.
Good Eggs was founded in 2011 and started scaling quickly. By the end of 2015, the company was doing business in Los Angeles, New York, and New Orleans. This expansion cost them everything— a near bankruptcy.
Good Eggs sells everything from local groceries to local produce, meat, fish, eggs, beverages, snacks, flowers, and fully prepared meals. They work with the Full Belly, Say Hay, and Eatwell farms.
In 2018, Americans spent about $1.5 trillion on groceries. Everyone needs to eat, right? And Good Eggs have made it extremely convenient to order items with the help of a simple app installed on your phone.
Many companies that tried to deliver high-quality groceries at artificially low prices fizzled out eventually. They couldn’t keep up with the soaring costs or changing customer expectations.
There are also some successful grocery delivery companies like FreshDirect in New York and Ocado in the UK. The companies are successful because delivering to those customers is easy. Urban areas have a large population living closer together in high-rise apartments. Delivering in suburban markets like the Bay Area is more complicated and costs more.
Good Eggs doesn’t shy away from paying its staff well. Good Eggs pays its drivers $19/hour and offers health benefits. The cost of warehousing the goods follows high delivery costs. That’s why Good Eggs doesn’t sell products for artificially low prices.
The buyer persona they developed will pay a little more than in-store prices to get farmer’s market-style food delivered to her home.
Good Eggs is more about getting customers a varied number of products that you can’t easily find in the average farmer’s market.
Instacart and DoorDash are logistics businesses that partner with grocery stores. All they need to do is find the cheapest way to get these orders to customers. Good Eggs has a unique
service in sourcing products that aren’t easy to find and getting them to customers’ homes.
Traditional grocery stores stock up on thousands of products. There are multiple variations of products. The assortment of products is broad because they want to catch everyone, going after the one-size-fits-all approach. With more than $1 trillion of market value split among these brands, there’s tons of competition.
Neither Amazon nor Whole Foods are focused on delivering high-quality food or using local sourcing. That means for certain customers, Whole Foods is no longer the solution.
That’s where a niche product like Good Eggs can help.
Good Eggs’ vegetables are sourced from farms around the area and are packaged and delivered to customers without sacrificing either the quality or freshness of the produce. There’s a demand for organic food that’s rich in quality. That’s why chains like Whole Foods became so successful in the first place.
The Internet is full of such niche brands. However, there are too many niche brands taking funding from venture capitalists without a true picture of their market size. And perhaps that’s why they fail to stay successful for long.
Good Eggs recently added an Oakland fulfillment center that’s four times as big as the San Francisco warehouse. The company wants to double its workforce to 1000 employees.
Once the Oakland facility is ready, it will generate $300 million in revenue. Next, Good Eggs wants to expand to Los Angeles, San Diego, and Seattle. Good Eggs recently announced $100 million in new funding and wants to launch itself in Southern California and cover the regions there.
Good Eggs has focused itself on the San Francisco Bay Area and has found enough growth opportunities. Good Eggs says that revenue has grown to more than $100 million, with over 400 new employees added to the company.
The grocery delivery market is intense, with many players backed by millions in funding operating in the space. Good Eggs stands out courtesy of its quality service. Over 70% of the products are locally sourced. The service delivers these products to your home within 48 hours of harvesting the produce. That’s an unparalleled level of commitment to freshness.
There are plenty of others offering meal preparation kits and groceries, among others. Good Eggs has differentiated itself by accounting for 65% of the spending for home food needs for its customers, who share traits similar to the Marissa persona.
The venture funding round saw participation from GV, Tao Invest, Finistere Ventures, and Rich’s, with previous investors like Benchmark Partners joining in. The new funding will help the service add new products while helping optimize delivery lines.
The grocery market is shifting, with demand for high-quality products going up. Good Eggs is seeing strong growth and will lead the segment in what it does.