Food delivery startup Wonder said it slashed 150 jobs – or 7% of its workforce – this week as it invests in robotics and automation.
Helmed by serial entrepreneur Marc Lore – who founded Jet.com and Diapers.com and headed up Walmart.com until 2021 – Wonder operates 140 retail locations in the Northeast. Diners can order gourmet take-out meals based on recipes from celebrity chefs like Bobby Flay or well-known restaurants.
The layoffs were across “multiple corporate teams,” and allow Wonder to “focus on areas key to our growth like physical expansion and investments in robotics and automation,” the company said in a statement.
The company added that no stores were shuttered and that it plans to end the year with 175 locations.
“As Wonder enters its next chapter, we made the difficult decision to eliminate a number of roles to focus our resources on key growth areas,” a Wonder spokesperson said in a statement. “We recognize the impact this will have on our colleagues and are committed to supporting them through this transition.”
The cuts come on the heels of a $650 million investment in July valuing the New York City-based company at $9 billion. It has raised more than $3 billion since it launched in 2018 and is gearing up for an initial public offering in the next year or two.
Wonder has made a series of high profile acquisitions, including food delivery platform Grubhub for $625 million last year and mealkit company Blue Apron in 2023 for $103 million.
Lore previously told The Post that the company has been able to expand quickly because of its “unique all-electric kitchen design which eliminates the typical need for hoods, gas and open flames.”
It began as a mobile kitchen that parked outside of customers’ homes and prepared chef-designed meals.
In 2023, Wonder pivoted to its current concept of bricks and mortar kitchens geared towards take-out.
One of its investors ARK Invest described the company as “disruptive” because it can churn out “restaurant-quality food at scale,” said CEO Cathie Wood in a statement about its July investment.
It’s menu offers meals from some 30 restaurant brands and Wonder acquired Blue Ribbon Chicken, Mighty Quinn’s BBQ and most recently Salt Hank’s.
Wonder also has financial challenges.
It does not expect to be cash flow positive until 2030 and projects burning nearly $2.7 billion in cash through 2029, according to a report by The Information.
“Wonder is blitzscaling to create the perception that they’re a growing company with big demand,” said retail consultant Brittain Ladd, adding that the company “is opening up new restaurants as fast as possible to try and attract investors and have a successful IPO.”