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Good Eggs Downsizing in SF, Shuttering Operations in LA, Brooklyn and New Orleans

Bay Area delivery and operations will remain the same.

Good Eggs, the startup designed to "bring the farmer's market to your door," announced this morning that they would be significantly downsizing at SF headquarters and completely shutting down operations in their other markets, effective Friday. The Los Angeles, Brooklyn and New Orleans arms of the grocery delivery company will take their last orders today, while the San Francisco operation will remain unchanged.

The four-year-old company has raised almost $30 million in funding in the past year from firms like Sequoia and Index Ventures, which aided in their rapid expansion (and resulting overextension). In a statement on the GoodEggs company blog, CEO Rob Spiro stated:

The single biggest mistake we made was growing too quickly, to multiple cities, before fully figuring out the challenges of building an entirely new food supply chain. We were motivated by enthusiasm for our mission and eagerness to bring Good Eggs to more people. But the best of intentions were not enough to overcome the complexity. Today we realize that in order to continue innovating in San Francisco, our original market, in order to continue figuring out all the complexity that is required to achieve our mission, we cannot productively maintain operations in other cities.

With a heavy heart I'm announcing that effective Friday, we will be closing our operations in Los Angeles, Brooklyn and New Orleans and reducing staff at our San Francisco HQ. We will be accepting our last orders in LA, New York City and New Orleans today. This is the hardest decision I've had to make in my career, but I know it is right for our company and our mission.

In addition to the unspecified number of employees that were let go from the San Francisco headquarters this morning, vendors and purveyors in all three shuttered markets will now be losing a source of income, which Spiro addresses in his statement:

"...when building a food and logistics business, hard lessons involve people, and partners, and are very hard to correct. As CEO I take full responsibility for any and all of our mistakes along the way as well as their consequences.

The statement concludes by mentioning upcoming product improvements that "will make Good Eggs even more convenient, more inspirational and tastier."

Eater has reached out to the company for more information on upcoming plans for the company; stay tuned for more details as they become available

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