Doordash quietly funded the operations of 15-minute supply app Fridge No Extra for greater than a month whereas it thought-about shopping for the corporate — then pulled out on the final second, The Put up has realized.
Earlier than Fridge No Extra abruptly introduced it was shutting down and laid off its 600 employees in New York and Boston on Thursday, the corporate had been financed virtually completely by cash from Doordash since late January, in line with sources and messages obtained by The Put up.
Doordash swept in after Fridge No Extra had struggled to lift cash and amid heated competition from other quick delivery apps together with Gorillas, Gopuff, Getir, Jokr and Buyk, in line with messages that Fridge No Extra co-founder and CEO Pavel Danilov despatched to staff on Thursday.
Doordash’s infusion of money allowed Fridge No Extra to maintain working whereas Doordash performed due diligence forward of potential acquisition. Some Fridge No Extra staff even interviewed for jobs at Doordash.
“We now have had quite a few conferences and calls with them, a few of you had interviews,” Danilov wrote in Thursday’s message to staff. “Every part appeared to be going properly and transferring ahead till Tuesday morning.”
Then on Wednesday, Doordash “unexpectedly cancelled the deal and stopped financing,” in line with Danilov.
“I used to be not offered an in depth purpose as to why,” he mentioned.
Danilov didn’t point out Doordash by identify within the messages, referring as a substitute to an unnamed “promising strategic associate,” however The Put up independently confirmed that Doordash was the corporate concerned.
A supply near Doordash advised The Put up that “the talks ended as a consequence of a number of elements that arose throughout due diligence together with operational points that may have been pricey and have taken months to remediate. These points have been communicated to the Fridge No Extra group.”
However a supply near Fridge No Extra’s management claimed that Doordash’s sudden withdrawal was due Danilov and co-founder Anton Gladkoborodov being from Russia — despite the fact that the supply acquainted mentioned the founders didn’t assist Vladimir Putin’s invasion of Ukraine.
“I believe they didn’t need the PR of buying an organization with Russian founders proper now,” the supply mentioned. “What is absolutely unhappy to me is that they choose the fellows not by who they have been or what they stood for however by their nation of birthplace.”
Doordash declined to touch upon the document and Fridge No Extra didn’t reply to a request for remark.
The Put up was the primary to report on Thursday morning that Fridge No Extra was shutting down.
One other Russia-backed speedy supply app, Buyk, furloughed 98% of its employees on Friday after US sanctions and restrictions on cash leaving Russia snarled its funding.
Buyk CEO James Walker advised furloughed staff on Thursday afternoon that Buyk had discovered a mortgage towards its belongings that may permit it to pay staff for the work they performed earlier than the corporate shut down. Nonetheless, the corporate was not in a position to safe US financing so staff would all be terminated as of Friday, Walker mentioned.