Introduction
French food delivery startup Epicery will be ceasing operations on Tuesday, marking the end of its nine-year journey in the market. Despite reaching unexpected highs during the COVID-19 pandemic and securing a majority shareholding from Geopost/DPDgroup, the startup has struggled to overcome economic and financial challenges.
Challenges Faced by Epicery
In a message announcing the decision to customers earlier this month, Epicery’s team stated that the decision was "the result of the economic and financial challenges we have been facing for several months, and which, despite our best efforts, we have been unable to overcome." The startup suffered when inflation made customers rethink their food spending, leading to a negative EBITDA of -€4.69 million in 2023 on sales of €2.57 million.
Epicery’s History
Epicery was founded with the goal of providing premium groceries and local deliveries. During its early years, it focused on partnering with local shops, mostly in Paris and Lyon, to offer customers a unique shopping experience. The startup reached unexpected highs during the COVID-19 pandemic when France went into lockdown, and it was still riding that wave in late 2021.
Geopost’s Decision
Geopost/DPDgroup, which took a majority shareholding in Epicery in 2021, stated that the decision to cease operations was made "following an in-depth analysis of [Epicery’s] financial and operating performance." According to Geopost, Epicery’s short- and medium-term profitability has been severely impacted by developments in the food delivery market, a gradual post-COVID return to direct consumption from local shops, and strong competition in the catering segment.
Legacy of Epicery
Co-founder and CEO Édouard Morhange commented on Epicery’s legacy, stating that "we promised [shop owners] at the very beginning, and what took us a long time to achieve, has now become an important part of their business." Morhange emphasized that logistics businesses are complicated and challenging in terms of metrics but believes that it can be done.
Impact on Local Businesses
Epicery’s model allowed local businesses to tap into the delivery market, providing them with a new revenue stream. Now that they have had a taste of this, it wouldn’t be too surprising to see an Epicery-like model make a comeback at some point.
Conclusion
The decision by Geopost/DPDgroup to cease operations marks the end of an era for Epicery. Despite reaching unexpected highs during the pandemic and securing significant investment, the startup struggled to overcome economic and financial challenges. However, its legacy will live on in the form of local businesses that have benefited from its model.
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