Singapore-based food delivery platform Gobble shuts down

Singapore-based food delivery platform Gobble shuts down

Photo: Unsplash

Singapore-based food delivery platform Gobble has shut down due to low profit margin and lack of positive cashflow, according to a LinkedIn post by the company’s co-founder, Domenico Tan.

The company’s profit margin and cashflow remained low despite having a high volume of sales. Tan also cited the sole reliance on B2C model as a cause for the shutdown and stated that the company will not be able to generate enough revenue just from Singapore to extend Series A funding.

“A big thank you to our investors for their support and partnership. They were more than just funding; they were incredibly supportive and talented individuals who were always there to help us ideate and grow,” wrote Tan.

Founders Ashwin Purushottam and Tan are the shareholders of the company, according to DealStreetAsia’s DATA VANTAGE, holding 58% and 42% of the shareholding.

Founded in 2021, Gobbles is a food delivery platform focused on group ordering and gifting food. Gobbles had raised $1.3 million in a seed funding in February last year with Flash Ventures and BEENEXT acting as lead investors, according to Crunchbase.

Singapore-based Grab, Indonesia-based GoJek, Zomato, and FoodPanda are some of the prominent food delivery apps in Southeast Asia.

Grab accounted for 54% of the region’s food delivery gross market value last year, followed by rivals Foodpanda at 19% and Gojek at 12%, Nikkei reported recently based on estimates by Momentum Works.

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