SG-based food delivery platform Gobble shuts down
The platform’s co-founder said the business was not ‘sustainable’.
Singapore-based food delivery platform Gobble closed down because of low-profit margins and lack of positive cashflow, the company’s co-founder Domenico Tan announced on LinkedIn.
“It is with a heavy heart that I announce the shutting down of Gobble, the food pick-up app for discounted group ordering. Gobble did not run out of money and we were not struggling to grow. Our annual GMV was USD350K and revenues grew by 47% MoM and continued to rise. Our monthly cohort retention was also impressive at 48% while maintaining an extremely low CAC of USD9,” Tan said.
“Despite achieving some growth with financial prudence, we have come to the difficult decision to close our doors. As we continued to grow and develop Gobble, we realised that relying solely on a B2C model wasn't sustainable for us. Despite having a high volume of sales, the margins were too low for us to continue on this path. Ultimately, it came down to simple math, we failed to show a quick enough path to positive cashflow. With our current funding, we knew we would not be able to generate enough revenue just from Singapore to raise our Series A.”
Established in 2021, Gobble is a food delivery app that focuses on group ordering and food gifting. The company previously raised US$1.3m in a seed funding round led by BEENEXT and Flash Ventures.