Food delivery startup Munchery is looking to get more people ordering more meals. And to do that, it’s lowering its delivery fees, while also launching an Amazon Prime-like yearly unlimited plan for Munchery fans.
For its most regular customers, the company has launched a $39 per-year unlimited delivery plan. Called Munchery Plus, the membership program will enable anyone to order as many meals as they want, without having to worry about delivery fees each time.
That delivery plan comes at the same time Munchery is lowering delivery fees in general. The company has been testing various prices and is now cutting prices in San Francisco and the Bay Area by up to 40 percent, from $4.95 to $2.95 for each delivery. That delivery fee is the same across Munchery’s entire delivery area, from Palo Alto to Berkeley.
For those who can’t do math, that basically means customers need to order about 13 Munchery meals to make up for the yearly fee. That shouldn’t be a problem, according to co-founder Tri Tran. In fact, at about one order per month, Munchery believes many regular customers will surpass the cost of regular delivery fees with that subscription price.
After spending the last few years refining its business in San Francisco, Munchery recently raised $28 million led by Sherpa Ventures and announced its plan to expand into Seattle. That brings total funding to about $36 million since being founded.
With that new funding closed, the company has also made a number of new hires. It’s brought on former Goldman Sachs executive Kris Fredrickson as its new VP of Operations. He’ll be leading the company’s expansion plans as it enters new markets in the U.S.
It’s also hired a couple of chefs to lead its Seattle launch. That includes MOMA NYC executive chef Meg Grace Larcom and Kickin’ Boot Whiskey Kitchen executive chef Bo Maisano as principal chefs there.