• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

AI CEOs from OpenAI, Anthropic, and Microsoft set aside their rivalry to warn Congress AI is making it too easy to design and create bioweapons

2

MacKenzie Scott's approach to her $26 billion giving spree was inspired by a book she read in college about writing

3

Social Security faces a 24% cut in 2032—that's a $345 billion hit to retirees nationwide, watchdog says

1

AI CEOs from OpenAI, Anthropic, and Microsoft set aside their rivalry to warn Congress AI is making it too easy to design and create bioweapons

2

MacKenzie Scott's approach to her $26 billion giving spree was inspired by a book she read in college about writing

3

Social Security faces a 24% cut in 2032—that's a $345 billion hit to retirees nationwide, watchdog says
Tech

Food startups are cookin’: Munchery raises $28 million for meal delivery

By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
April 10, 2014, 5:00 PM ET

Food has been very, shall we say, hot among venture capitalists lately. In 2013, VCs poured $2.8 billion into food-related startups. The category picked up momentum again earlier this week when Fortune reported that Blue Apron, a meal kit delivery startup based in New York, is in the process of raising $40 million to $50 million, valuing the company at $500 million.

Today, a cross-country competitor called Munchery announced it has raised $28 million in venture backing, bringing its total funds raised to $32.21 million. The round was led by Sherpa Ventures, with participation from existing investors e.ventures and Menlo Ventures. Munchery also snagged two celebrity backers: Chef Roy Choi, founder of the Kogi BBQ taco truck, and the actor and director Jon Favreau.

Munchery offers delivery of prepared gourmet meals, and so is different from meal kit delivery startups such as Blue Apron, Plated, Fresh Dish, PlateJoy and SpoonRocket. These companies send kits of ingredients with recipes, which customers then cook on their own. Munchery meals can be heated up in 10 minutes.

The advantage of Munchery’s approach is convenience for users. They don’t have to cook, and for a flat $3 delivery fee they can schedule a meal ($8 to $12 each) to come during a time slot of their choosing, anywhere from a few days in advance to a few hours. The entire site, which has 70 to 80 menu items per day, often sells out by 5 p.m.

MORE: Atlassian: The $3.3 billion software company you’ve never heard of

A downside to the Munchery model is the company has many more logistical problems to solve. It has its own delivery network of 100 part-time drivers who make up to $28 per hour, according to co-founder Tri Tran. It has its own operations team, photographers, a kitchen with 40 to 45 staffers, and 23 additional partner chefs. Earlier this year, the company decided it would make more sense to bring chefs in-house rather than have them act as independent contractors.

In this way, Munchery competes with GrubHub and restaurants offering regular old take-out. But it’s better, Tran argues, because GrubHub and its peers rely on restaurants. GrubHub is an aggregator that adds a convenience layer, he says: “But at the end of the day, it’s still the same food from the same places nearby, and it still relies on the inconsistent and completely inflexible delivery system those restaurants provide.”

The in-house business model also means Munchery is regional. To grow, it has to enter new cities, build up new delivery fleets, hire new chefs, and attract new customers. (Its growth strategy is not unlike that of on-demand transportation service Uber, the most well-known investment of Munchery’s newest board member, Shervin Peshivar.)

To be sure, Munchery has done pretty well in San Francisco, its first city. The company has sold more than 580,000 meals since its inception, averaging up to 5,100 meals per day and growing by 20% each month. Customers order an average of three to four times per month.

MORE: Timeline of the day: Apple’s 2014 rumored product roadmap

Alongside news of its funding round, Munchery also announced it is expanding to Seattle. The company has a goal of being in 15 to 20 cities within the next few years. It will focus on local tastes and preferences, hiring local chefs with each new market.

“We’re not trying to be like Blue Apron, where we ship the same recipes all across the country,” says Conrad Chu, a Munchery co-founder. Chu emphasized that the city-by-city rollout is not a hindrance to growth.

“Unlike a company like Airbnb, which is travel-based and really needs to be everywhere, we don’t need to be everywhere for the business to work,” he said. “We can roll out city by city, and there are a great number of huge cities in this country, in Europe and in other parts of the world.” Chu noted that San Francisco is ranked 15th in the country in terms of money spent on dining.

Rounding out the food-tech trend, Kitchensurfing, an online marketplace for booking private chefs, raised $15 million last week from Tiger Global Management at a valuation of at least $40 million. And the GrubHub IPO? Investors ate that up.

Correction, April 10, 2014: An earlier version of this story misstated the amount of capital raised by Munchery as $20 million. The correct amount is $28 million.

About the Author
By Erin Griffith
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

bernie
AIWhite House
Bernie Sanders and Sam Altman’s private one-hour meeting about the public ownership of AI
By Joey Cappelletti, Seung Min Kim and The Associated PressJune 6, 2026
54 minutes ago
Chinese humanoid robots dominate the market with thousands shipped a year. But most are still performative rather than functional
InnovationRobots
Chinese humanoid robots dominate the market with thousands shipped a year. But most are still performative rather than functional
By Chan Ho-Him and The Associated PressJune 6, 2026
2 hours ago
sa
CommentaryIPOs
When good money goes bad: the question SpaceX and OpenAI investors aren’t asking
By Rory McDonaldJune 6, 2026
5 hours ago
Man holding his fists together.
InnovationElon Musk
Elon Musk bullet-proofed his $1 trillion ‘Mars-shot’ pay at SpaceX after the epic battle over his $56 billion moonshot at Tesla
By Amanda GerutJune 6, 2026
5 hours ago
Upset frustrated and confused female worker folding hands on chin
Future of Workcompensation
A CEO denied raises to spend money on AI instead. Companies have ‘no idea what they’re going to need in a workforce’ when the AI race is over
By Jacqueline MunisJune 6, 2026
8 hours ago
SpaceX needs to grow 600x in a decade to justify a $1.75 trillion valuation. No company has ever come close
InvestingFinance
SpaceX needs to grow 600x in a decade to justify a $1.75 trillion valuation. No company has ever come close
By Shawn TullyJune 6, 2026
9 hours ago

Most Popular

AI CEOs from OpenAI, Anthropic, and Microsoft set aside their rivalry to warn Congress AI is making it too easy to design and create bioweapons
AI
AI CEOs from OpenAI, Anthropic, and Microsoft set aside their rivalry to warn Congress AI is making it too easy to design and create bioweapons
By Marco Quiroz-GutierrezJune 5, 2026
1 day ago
MacKenzie Scott's approach to her $26 billion giving spree was inspired by a book she read in college about writing
Success
MacKenzie Scott's approach to her $26 billion giving spree was inspired by a book she read in college about writing
By Sydney LakeJune 5, 2026
1 day ago
Social Security faces a 24% cut in 2032—that's a $345 billion hit to retirees nationwide, watchdog says
Economy
Social Security faces a 24% cut in 2032—that's a $345 billion hit to retirees nationwide, watchdog says
By Nick LichtenbergJune 5, 2026
1 day ago
Current price of oil as of June 5, 2026
Personal Finance
Current price of oil as of June 5, 2026
By Joseph HostetlerJune 5, 2026
1 day ago
Ohio city workers are covering automated license plate readers with trash bags as officials sound the alarm on 'egregious violations' of privacy
Cybersecurity
Ohio city workers are covering automated license plate readers with trash bags as officials sound the alarm on 'egregious violations' of privacy
By Sasha RogelbergJune 3, 2026
3 days ago
'Big Tech is desperate': Amazon engineers are calling out the tech giant for its $200 billion in data center spending after slashing 30,000 workers
Environment
'Big Tech is desperate': Amazon engineers are calling out the tech giant for its $200 billion in data center spending after slashing 30,000 workers
By Sasha RogelbergJune 5, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.