• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Farmigo Thought It Could Kill Off Supermarkets. Here's What It's Trying Next.

Farmigo Thought It Could Kill Off Supermarkets. Here's What It's Trying Next.

December 15, 2017
Forbes

Launched in 2009 and backed by $26m in venture capital, Brooklyn-based Farmigo built a software platform where shoppers could place orders with local farms. Farmigo also handled logistics, transporting food from farms to one of three warehouses and then distributing it to pick-up spots in schools and community centers. It operated in three locations, Seattle-Tacoma, the Bay Area, and greater New York City, and made its money on the 35-percent markup it charged on food purchases.

But in July 2016, a year after Ronen made his bold claims to Forbes, he shut down the logistics end of his business, closing Farmigo’s warehouses and laying off 100 staffers, leaving just 20 employees who continued to work on the company’s software.

Part of Ronen’s prediction, that food shoppers would shift their purchases online, is coming true (a January 2017 Food Marketing Institute study said a quarter of U.S households bought some food online in 2016, up from 19 percent in 2014). But he concluded Farmigo would never be able to compete with Amazon, whose AmazonFresh service offers same-day delivery.

Though he says a new investor he won’t name offered him an additional $20m to expand Farmigo’s logistics arm, he figured it would cost far more than that to beat Amazon’s giant network of warehouses and finely-honed logistics operation. “To compete with the convenience Amazon was gunning for would have been incredibly costly and maybe even impossible,” he says.

Read Full Article

RELATED CONTENT

RELATED VIDEOS

Logistics Express/Small Shipments Logistics Outsourcing LTL/Truckload Services Transportation & Distribution Transportation Management All Warehouse Services Order Fulfillment E-Commerce/Omni-Channel Food & Beverage Retail
KEYWORDS All Warehouse Services E-Commerce/Omni-Channel Express/Small Shipments Food and Beverage Logistics Logistics Outsourcing LTL/Truckload Services order fulfillment Retail Transportation & Distribution Transportation Management
  • Related Articles

    Trying to Sell Winter Coats Online When It's Summer in Australia?

  • Related Directories

    Kuebix

Forbes

From Virtual Restaurants to Exclusive Pop-Ups, the New War in Food Delivery Is in the Kitchen

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Warehouse worker

    Why Higher Wages Alone Won’t Solve the Supply Chain Labor Shortage

    Warehousing
  • Adidas

    From Sneakers to Teslas, China Lockdowns Upend Global Supply Chains

    Coronavirus
  • Mobile App

    Podcast | Companies Are on a Shopping Spree for Supply Chain Software

    Technology
  • ESG Guide

    Confronting the ESG Imperative in Supply Chains

  • Gene Seroka

    Port Automation Is Hot-Button Issue in West Coast Labor Talks

    Logistics

Digital Edition

Scb feb 2022 sm

2022 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing