This Grocery Delivery Service Is Shutting Down, Reports Say
The pandemic changed the way Americans shop for food, including introducing many to online grocery shopping. As digital sales skyrocketed, third-party companies also entered the grocery delivery fray. However, after launching less than a year ago, one of these startups is apparently logging off for good.
New York-based app 1520 is telling customers who log in that it is "restocking the shelves for a couple days." In reality, the business "shut down after it burned through its capital and a potential acquisition offer," Business Insider's Tom Dotan reported.
The fledgling grocery delivery service was founded in January 2021. The company advertised "groceries delivered free in 15-20 minutes." Per its Instagram bio, 1520 serviced customers in Manhattan, Long Island City, Astoria, as well as Chicago.
"Our pantry styled warehouses are located in your neighborhood so we can be at your door in no time," 1520 says on its website. "You'll find us right around in your neighborhood packing and delivering your most-needed essentials."
1520 was "engaged in acquisition talks" with a competitor named Jokr after raising nearly $8 million in seed funding, according to Dotan's report. However, the conversation ultimately "fell silent." Eat This, Not That! has reached out to 1520 for confirmation about the reported shutdown.
CEO Ralf Wenzel told Insider that Jokr wasn't planning to expand via an acquisition at this time. The larger rival is reportedly valued at around $1.2 billion.
Grocery delivery and pickup sales hit $7.2 billion in June 2020 but slumped to $5.3 billion in June 2021, according to Statista.
For more on what's happening at the supermarket in your neighborhood, check out:
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- Grocery Recalls Are Hitting an All-Time High—Here's Why
- Kroger Is Raising Prices on Select Grocery Items, CFO Says
- The Best & Worst Italian Dressing on Grocery Store Shelves—Ranked!
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