Chef Nightly, the Boston food delivery app that went head-to-head with UberEATS in New York, has shut down. The startup’s co-founder/CEO Michael Sheeley made the announcement in a Wednesday blog post, saying that it failed to develop an innovative enough product for what has become a very crowded market.
“We now realize that it takes a much more innovative approach once a market heats up.”
“We now realize that it takes a much more innovative approach once a market heats up,” Sheeley, who previously co-founded Runkeeper, wrote. “Many people have asked us to open our own kitchens and start making our own food, or for us to charge a subscription to lower the overall price for the most active users. These strategies may open-up arbitrage opportunities in the short term but without a truly unique food product, even these strategies will require large amounts of capital to scale.”
However, Sheeley continued, raising more money wouldn’t have been enough.
According to Xconomy, Chef Nightly had seven employees as of this past September. The startup announced last September that it had raised $1.5 million in seed funding from investors including DraftKings co-founder and CEO Jason Robins, Kayak and Lola co-founder Paul English, Streetwise Media co-founder Chase Garbarino, Accomplice, Fullstack Ventures and Bridge Boys. This makes the second Accomplice-backed startup to go under this year.