Goodfood drops 30-minute delivery

Goodfood drops 30 minute delivery

DAY

Goodfood Market is abandoning its 30-minute on-demand delivery service that launched less than a year ago with hopes of returning to growth.

“It's a decision to reassure the market, but unfortunately, it may be too late,” said Sylvain Charlebois, professor of distribution and food policy at Dalhousie University.

Goodfood drops 30-minute delivery

Sylvain Charlebois
Professor

Layoffs

In July, Goodfood reported lower sales for a fourth consecutive quarter, despite the launch of the express delivery service a few months earlier. 

The ready-to-cook specialist had then undertaken a review of its activities and operations in the hope of bringing the indicators back to green.

Yesterday, Goodfood explained in a press release that it would still require considerable investment to bring 30-minute deliveries to an attractive level of profitability. 

The company had already laid off 40 employees in May and it is now closing its micro distribution centers. It will focus on a more predictable clientele, which buys ready-to-cook box subscriptions.

Action to dust

The action Goodfood, at $13 at its peak in December 2020, was worth nothing but dust at $0.64 yesterday midday. but they have not been able to adapt,” observes Professor Charlebois, adding that the ready-to-cook market has lost more than 50% of its value since last year in the country.

Inflation is to blame, but also the explosion of online food supply. 

Competition today comes from restaurants and ready-to-eat from well-known brands like Ricardo or Three times a day now sold in grocery stores.