| It's ok to think of Sprig as a restaurant that delivers. The most profitable restaurant chains in the world make $2-3M per store, with repeatable success in new stores (with obvious much better than 0-15% returns). You're finding the optimal solution for two problems: making food and delivering food. For making food, along with recipes and process, having great technology allows you to reduce cost and improve customer LTV by: * Reducing wasted ingredients and spoiled items by predicting demand and tracking your production line * Identify which meals get people to come back * Optimize for pricing, similar to website conversion For delivering food, having great technology allows you to improve delivery speed and reduce delivery cost. Yes, at the end of the day Sprig competes with any restaurant that delivers in the same way that Warby Parker competes with any eyeglass brand / store (obvious difference being the better margins in the eyeglass industry). However if you can get really good at using technology to optimize your production production and distribution, your advantage is your profit margin and your ability to deploy growth capital efficiently. Final point -- VCs are ok not making money for a few years. In fact, they HAVE to be ok not making money for 7-10 years. That's the whole point of venture capital. |