Bite Squad bails on three Minnesota cities

Bite Squad, the restaurant delivery service, will halt service in St. Cloud, Rochester and Duluth next month, just months after launching in the Minnesota cities.

The St. Cloud Times reports on the announcement by Bite Squad, which got its start in the Twin Cities market but was bought earlier this year by Waitr Holdings Inc. (NASDAQ: WTRH) of Lake Charles, La., for $321 million.

The Post Bulletin earlier this month had spotted an email sent by Bite Squad to restaurants in Rochester, saying the last day of service would be Dec. 5.

The company began service in all three cities in August as part of a growth strategy charted after the Waitr acquisition. But the company has run into trouble since then: Waitr reported a net loss of $220.1 million earlier this month and has cut much of its former Bite Squad staff. It also wrote off a big chunk of the $321 million purchase price, and warned that it would exit many of its newest markets.

A spokesman for Bite Squad said the company hadn’t been able to grow revenue quickly enough in the three Minnesota cities.

Other food-delivery services are also having a bumpy time; Chicago food delivery giant GrubHub (NYSE: GRUB) cut its outlook for the year, saying the market was becoming commoditized.


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