We analyze what it is, how it grew and why the Take Eat Easy closes. It tells it all. Thank you very much from here for it, because you learn a lot.
What about the startup Take Eat Easy?
Adrian Roseco-founder and CEO of the startup Take It Easy, tells us all about the creation, development and fall of this business since they decided to launch it in the summer of 2013 so that quality restaurants could offer a reliable home delivery service to its customers.
A year later, after having tested it in Brussels and expanded it in Paris, they achieved a first venture capital round in April 2015 and a second round in August 2015.
In the past 12 months, they’ve grown their team from 10 to 160 people, expanded operations from 2 to 20 cities, gone from partnerships with 450 to 3,200 restaurants, and grown their customer base from 30,000 to 350,000. A third of their clients are active clients.
A few days ago they reached a million, but still they are requesting a judicial restructuring because their income does not cover their costs and they have not been able to raise a third round of financing. Take Eat Easy closes after 3 years.
How does Take Eat Easy work?
The take eat easy startup business concept it is quite simple, on each order the restaurant is charged a commission of 25-30% and a delivery fee of 2.5 euros to the customer. With 12 euros of average net income per order on average, you have to pay for the bicycle courier service.
The margin is based on the commission, the average order value, the delivery fee and the delivery cost, the first three being dictated by market conditions. The use of messaging is one of the most important indicators of the business, but in this case the contribution margin was negative.
The contribution margin, after having focused its efforts on many aspects of the business, has improved considerably and is positive in all aspects although not high enough to cover fixed costs.
Final considerations
Although they have improved considerably, they have not been able to raise the necessary capital to balance the company financially. Although it seemed possible and they had an agreement that did not take place, a third round of financing was not obtained and they have spent the last 2 months trying to find solutions to keep the business alive. Therefore, they have had to sign a judicial restructuring agreement.
That is to say: it has been gathered that they did not have an operation that was sustained, at least currently, with the income; and they did not gain the confidence of new investors to have more time to remedy it.
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