The $500 million robot pizza startup you never heard of has shut down, report says

A robot pizza startup that raised almost $500 million has shut down, The Information reported.

Zume, the pioneering startup in robot-assisted pizza delivery, has come to an unfortunate end, as reported by The Information. Despite its ambitious vision and successful fundraising efforts, the company has faced a series of technological hurdles, ultimately leading to its closure. Initially established in 2015 with the goal of automating the pizza-making process, Zume encountered significant challenges along the way and eventually shifted its focus to becoming a sustainable-packaging manufacturer.

The closure of Zume is noteworthy considering the substantial amount of funding it secured from prominent investors such as Softbank and AME Cloud Ventures. The company raised close to $500 million in total, according to Crunchbase. However, The Information’s sources indicate that Zume is now deemed “insolvent,” prompting the involvement of Sherwood Partners, a restructuring firm tasked with liquidating the company’s assets. The cessation of its operations reportedly occurred in May, corroborated by an individual familiar with the situation.

Zume faced a multitude of difficulties throughout its journey, including the challenge of preventing melted cheese from sliding off pizzas as they cooked within mobile trucks, as reported by Bloomberg. These obstacles resulted in notable setbacks, including the departure of key personnel and financial struggles. In 2020, the company made significant workforce reductions, cutting over 500 employees, which encompassed its robotics and food-delivery truck divisions, as previously disclosed by Insider.

In an internal email leaked to Insider at the time of the layoffs, Alex Garden, Zume’s co-founder and CEO, attributed the job cuts to failed funding agreements and the economic repercussions of the pandemic. Despite Insider’s attempt to solicit a comment from Zume, the company did not respond at the time of reporting, likely due to the request being made outside regular business hours.

The closure of Zume serves as a reminder of the formidable challenges faced by startups, even those armed with substantial funding and ambitious visions. While the company’s innovative approach to automating pizza delivery captured attention and investment, the road to success proved more arduous than anticipated, culminating in its unfortunate demise.

Delivery Hero-owned Baemin to exit Vietnam in December Author: Borys Gitelman
Uber Shuts Down Instant Delivery In NYC Author: Borys Gitelman
Swiggy gears up for $1 billion IPO, SoftBank may sell stake Author: Borys Gitelman
The EU Wants to Fix Gig Work, but Uber Has Its Own Ideas Author: Borys Gitelman
Just Eat Growth Momentum Stalls In Ireland Author: Borys Gitelman
Amazon to sell Hyundai vehicles online starting in 2024 Author: Borys Gitelman
Britain’s Ocado secures first deal beyond grocery retail Author: Borys Gitelman
Amazon Expands Grocery Delivery to Non-Prime Members Author: Borys Gitelman
Bolt Food to exit Nigerian food delivery market by December Author: Borys Gitelman