Food Service & Agriculture, Small Business & Startups, and Technology

E-commerce company buys grocery delivery service

December 4, 2019
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Doorganics
Courtesy Doorganics

A West Coast e-commerce company has acquired a local grocery delivery service.

San Francisco-based GrubMarket acquired Grand Rapids-based Doorganics, according to GrubMarket today.

Doorganics is a farm-to-table delivery service that provides local and organic fruits, veggies, dairy, pastured proteins, artisan breads and other specialty groceries to customers throughout Michigan.

Terms of the deal were not disclosed.

Mike Hughes founded Doorganics in 2011. The company’s headquarters will stay in Grand Rapids, and Hughes and the rest of the leadership team will remain in place.

“This acquisition is another key step in GrubMarket’s nationwide expansion plans, and we are incredibly excited to welcome Mike Hughes and his team into the GrubMarket Family,” said Mike Xu, CEO, GrubMarket.

Hughes said Doorganics will be able to “leverage GrubMarket’s established e-commerce network and supply chain capabilities,” which will allow Doorganics to expand delivery in the Midwest.

“GrubMarket believes in the importance of supporting local farmers and producers, while recognizing the essential role that technology can play in food e-commerce,” Hughes said. “We look forward to working with the GrubMarket team to further enhance and expand our service.”

GrubMarket

Founded in 2014, GrubMarket's online storefront allows sellers to offer their farm-fresh goods and restaurant menus to customers for delivery.

GrubMarket has acquired several competitors to expand its delivery and supplier network.

It is backed by about 51 venture capital investors, including Yahoo! founder Jerry Yang, GGV Capital and Y Combinator, according to the company’s LinkedIn page.

The company most recently closed a Series C1 funding round of about $30 million in April, according to the financial research and data firm PitchBook.

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