What Happened To Take Eat Easy & Why Did It Fail?

Take Eat Easy was a Belgian startup founded in 2013, aimed at connecting customers with quality restaurants for reliable meal delivery within an hour. Despite initial success and significant funding, the company went bankrupt in 2016 due to intense competition and financial challenges.

What Was Take Eat Easy?

Take Eat Easy was a restaurant delivery app that connected customers with quality restaurants, offering reliable meal delivery within an hour. Its unique value proposition lay in its deep integration with restaurant operations, allowing seamless online ordering and real-time updates. Notably, it raised €16.4M in funding and employed up to 250 people.

What Happened to Take Eat Easy?

The story of Take Eat Easy is a compelling tale of rapid growth and sudden decline, marked by several key phases:

• Initial Success and Expansion: Founded in 2013, Take Eat Easy quickly gained traction by offering a unique service that connected customers with quality restaurants for reliable meal delivery. The company expanded its operations to several European countries, raising €16.4 million in funding and employing up to 250 people at its peak.
• Innovative Business Model: The startup's business model focused on real-time optimization and deep integration with restaurant operations. This allowed for seamless order management and efficient dispatching of couriers, setting it apart from competitors.
• Intense Competition: Despite its innovative approach, Take Eat Easy faced fierce competition from other well-funded delivery services. The market saturation made it increasingly difficult to maintain a competitive edge and secure additional funding.
• Financial Struggles: The inability to secure further investment led to significant financial challenges. The company struggled to cover operational costs, ultimately leading to its bankruptcy in 2016.
• Closure and Aftermath: The company ceased operations in 2016, leaving a lasting impact on the European food delivery market. Its rise and fall serve as a cautionary tale for startups navigating highly competitive industries.

When Did Take Eat Easy Shut Down?

Take Eat Easy shut down in 2016 due to intense competition and financial struggles. Despite raising significant funding, the company was unable to secure additional investment, leading to its eventual bankruptcy.

Why Did Take Eat Easy Shut Down?

1. Capital and Profit Issues:

   Take Eat Easy struggled with high operational costs and an insufficient contribution margin, which made it difficult to cover fixed expenses. The company failed to secure a third round of funding after a French state-owned logistics group withdrew their offer, leading to severe financial constraints.

2. Intense Competition:

   The food delivery market was highly competitive, with established players like Deliveroo, UberEATS, and Delivery Hero’s Foodora. One of Take Eat Easy's main investors also invested in a direct competitor, further intensifying the competition and making it difficult for the company to maintain its market position.

3. Investor Challenges:

   Due to the saturated market, Take Eat Easy faced significant challenges in attracting new investors. Venture capitalists were hesitant to invest in a market with fierce competition, leading to a lack of necessary funding to sustain and grow the business.

4. Operational Inefficiencies:

   Despite its innovative approach, Take Eat Easy faced operational inefficiencies that hindered its ability to scale effectively. The complex logistics of coordinating between restaurants and couriers added to the operational burden, making it difficult to achieve profitability.

5. Market Saturation:

   The rapid expansion of food delivery services led to market saturation, making it increasingly difficult for Take Eat Easy to differentiate itself. The crowded market environment limited growth opportunities and contributed to the company's eventual downfall.

Lessons Learned from Take Eat Easy's Failure

• Secure Sustainable Funding: Ensure a robust financial plan and secure sustainable funding to cover operational costs and unforeseen challenges.
• Understand Market Dynamics: Thoroughly analyze market conditions and competition to develop strategies that differentiate your business.
• Maintain Operational Efficiency: Streamline logistics and operations to minimize inefficiencies and enhance scalability.
• Adapt to Investor Expectations: Align business goals with investor expectations to attract and retain necessary funding.
• Focus on Profitability: Prioritize achieving a positive contribution margin to sustain long-term growth and stability.
• Innovate Continuously: Keep innovating to stay ahead of competitors and meet evolving customer needs.
• Build a Resilient Business Model: Develop a resilient business model that can withstand market fluctuations and competitive pressures.

We Shut Down Startups

Take Eat Easy's failure underscores the complexities and challenges startups face, especially in highly competitive markets. If you're navigating a similar situation, Sunset can help you manage the legal, tax, and operational burdens of winding down your startup.

Don't let the stress of shutting down overwhelm you. Book a demo with Sunset today to smoothly transition to your next venture.