Leveraging AI technology to build a new supermarket model, Farmstead announced on October 5th their launch in the San Francisco Bay Area. The digitally-based micro-grocer uses proprietary software and a specially-designed fulfillment model to cut down on the high level of waste present in the grocery industry.
Farmhand’s fulfillment model is able to do this by cutting out the supermarket entirely, stocking the company’s micro-warehouses with minimally-packaged local foods, using reusable bags ice bags, and milk bottles, and delivering directly to the customer. Anything that isn’t purchased by customers is instead donated to Feeding America, a national food bank, to further decrease waste.
Since their founding 12 months ago the company completed over 15,000 deliveries to those within the Bay Area, using their AI technology to predict and calculate customer habits so Farmstead knows exactly how much food to order, further reducing food waste. This launch in San Francisco is possible thanks to seed funding from Resolute Ventures, Y Combinator, Joe Montana’s Liquid 2 Ventures, and Social Capital for a combined total of $2.8 million.
“In 2017, consumers shouldn’t have to drive to the store, stand in a line, and buy food of questionable quality which then goes to waste,” says Pradeep Elankumaran, co-founder and CEO of Farmstead. “By sourcing and delivering the best products to customers in just the right amounts in under an hour, we help our customers throw out less food and take fewer trips to the store each week, cutting down on waste and pollution.”
