This is a very interesting business. At $9-13/meal, the price of a meal from Sprig rivals most fast casual restaurants. I wonder if the price point could be lowered further as the company scales and gains more customers in densely populated areas (increasing utilization of each driver and shortening the distance of each delivery).
As for the Uber threat, I agree with you that UberEats may not be as competitive in terms of quality given that the food may not be specifically made to be carried around for long periods of time. However, I wonder if Uber’s model of playing the intermediary and sourcing food from restaurants instead of creating it gives it more flexibility in terms of changing consumer preferences. It may be easier for UberEats to switch between restaurants based on popularity vs. Sprig that is vertically integrated and would need to re-train chefs on a certain cuisine and purchase specific equipment – it may be pretty difficult to switch from prepping pasta to making sushi overnight.
Very interesting post, Matt! Trunk Club’s unique business model allows it to operate without the capital intensity necessary for “brick-and-mortar” retailers. It seems that there will be significant operating leverage for the company as it scales, as it will be able to negotiate better pricing with clothing manufacturers and logistics providers (e.g., shipping and handling). However, I wonder if there are issues or factors that would limit the company’s ability to scale its business model. For example, perhaps current customers are attracted to the curation and unique wardrobes that Trunk Club provides, in addition to the convenience. As more users adopt the service, I wonder if the product offering would lose its appeal with the original customer base that desire unique clothing pieces that are not worn by others.