Good Eggs Secures $100 Million Funding and Plans Southern California Expansion

Good Eggs, a grocery delivery service, has announced a new funding round of $100 million. The company intends to begin operations in Southern California during either the summer or fall of this year.

Readers following Good Eggs may recall similar announcements. When the startup received $50 million in funding back in 2018, CEO Bentley Hall also indicated plans for geographic expansion.

Significant Growth in the Bay Area

However, the company has demonstrably achieved substantial growth while concentrating on the San Francisco Bay Area market. Good Eggs reports that its revenue has surpassed $100 million in the last year.

Furthermore, over 400 employees have been added to the team, and the customer base has nearly doubled during this period.

Just prior to the implementation of shelter-in-place orders last March, a larger warehouse facility was opened in Oakland. This presented operational challenges as the team simultaneously managed a new warehouse, increased demand, and worker safety protocols.

Competitive Advantage Through Quality and Sourcing

Despite the increasingly competitive grocery delivery landscape, Hall asserts that Good Eggs differentiates itself through product quality and variety. A significant 70% of its offerings are sourced locally.

Many products are delivered within 48 hours of harvest, ensuring freshness. The company provides groceries, meal kits, prepared meals, and alcohol, all adhering to specific sourcing standards.

Consequently, Good Eggs has become the primary food source for a large portion of its customers, accounting for 65% to 85% of their at-home food spending.

A Turnaround Story

This funding represents a notable recovery for the company, which previously ceased operations in Los Angeles, New York City, and New Orleans in 2015. Hall assumed the role of CEO shortly thereafter.

He emphasizes a measured approach to expansion, avoiding a rapid rollout across numerous new markets.

“Southern California is best viewed as a collection of smaller regions,” Hall explained. “Areas like Los Angeles, northern San Diego, and Orange County collectively represent a market size comparable to two or three Bay Areas.”

Investment Details and Board Addition

Glade Brook Capital Partners led the funding round, with contributions from GV, Tao Invest, Finistere Ventures, and Rich’s. Existing investors, including Benchmark Partners, Index Ventures, S2G, DNS Capital, and Obvious Ventures, also participated.

J.P. Van Arsdale of Glade Brook will be joining Good Eggs’ board of directors.

Van Arsdale stated, “The grocery market is undergoing fundamental change, with an accelerating shift towards e-commerce and higher quality products and services.” He further added that Good Eggs is well-positioned to become a leader in this evolving market.

Future Plans

The new capital will be used to support geographic expansion and to continue enhancing product offerings. Improvements to the overall e-commerce experience are also planned.

New Leadership Appointment

In addition to the funding announcement, Good Eggs has appointed Vineet Mehra as its chief growth and customer experience officer. Mehra previously held leadership positions at Walgreens Boots Alliance and Ancestry.