On-demand meal delivery service Sprig is preparing to shut down, said a person familiar with the matter, and will announce the decision later Friday. The closure of the business is the latest sign of challenges for on-demand delivery services which blossomed a couple of years ago but have run into problems making money.
Sprig, which prepared and delivered gourmet meals to people in San Francisco, had reportedly been losing six-figures monthly and was unable to expand the service into other cities. It had received $56 million in funding according to Crunchbase and had been backed by Accel, Social Capital and Greylock Partners. It last raised money in 2015 at a pre-money valuation of $110 million. (After this story was published, Sprig confirmed the news in a blog posting.)