Farmstead shakes up traditional supermarket model
Farmstead, the new AI (artificial intelligence)-powered digital micro-grocer, has launched in the San Francisco Bay area.
Farmstead, the new AI (artificial intelligence)-powered digital micro-grocer, has launched in the San Francisco Bay area. The company’s goal is to reinvent the supermarket model with technology that sources and delivers local food from farm-to-fridge in 60 minutes. Founded 12 months ago, Farmstead has completed more than 15,000 deliveries to San Francisco area customers, and has raised $2.8 million in seed funding from Resolute Ventures, Social Capital, Y Combinator, and Joe Montana’s Liquid 2 Ventures.
“Farmstead’s goal is to fundamentally transform the American grocery experience with AI technology,” said Pradeep Elankumaran, Farmstead CEO and cofounder. “In 2017, consumers shouldn’t have to drive to the store, stand in a line, and buy food of questionable quality that then goes to waste. 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.”
Using proprietary software, Farmstead customers select items from an array of local farm produce and grocery products. After just one order, Farmstead’s AI calculates and predicts users’ habits to know exactly how much food to order from local sources daily, weekly, seasonally, and annually, reducing food waste.
By stocking a constellation of micro-warehouses in the San Francisco area with the right amount of local, minimally-packaged foods, Farmstead delivery drivers are algorithmically routed to use the most efficient, traffic-free, eco-friendly routes, resulting in less congestion. Farmstead has chosen minimal packaging and reusable ice packs and bags, which drivers collect along with milk bottles from prior Farmstead deliveries for reuse.
Farmstead matches local supermarket prices and won’t force users to meet a minimum amount after their first order. Customers can choose flexible delivery options including one-hour, same-day, and weekly services. If a customer joins a weekly eco-optimized delivery route, their order is delivered for free. Otherwise delivery is $3.99 and one-hour delivery is $4.99.
Any food that isn’t purchased by Farmstead customers is donated to national food bank network Feeding America.