A popular food delivery service known for competing with giants like Uber Eats and DoorDash has shut down for good. After fighting to stay afloat for 11 years, the company finally gave in to financial struggles and declared bankruptcy.
Customers who relied on this service found themselves out of options overnight.
ASAP, the delivery service, officially closed its doors on April 2 after filing for Chapter 7 bankruptcy.
This means the company will sell off its assets to pay as much debt as possible, marking the end of its journey in the food delivery world.
From Waitr to ASAP: A Food Delivery Journey Ends
ASAP, once a strong competitor to big names like GrubHub, DoorDash, and Uber Eats, has shut its doors. Originally called Waitr, this food delivery service began its journey with humble beginnings.
The company was founded in 2013 by students from McNeese University. By 2015, it had officially entered the food delivery scene. Starting in Louisiana, ASAP quickly expanded, eventually serving customers across the country, including the bustling streets of New York City.
However, the road has come to an end. In a heartfelt announcement, ASAP declared it would close for good. This decision marks the conclusion of years of hard work and dedication to serving communities.
The change from Waitr to ASAP came in 2022 following a lawsuit from a similarly named company. At its peak, ASAP held 3% of the US food delivery market, a testament to its significant, yet overshadowed, presence in a competitive industry.
The company's farewell message to its supporters was sorrowful: "With a heavy heart, we share the news of the closure of our delivery and carryout business. After years of dedicated service, we've made the tough decision to cease operations."
This message signaled the end of ASAP and highlighted the volatile nature of the food delivery market, where even the most resilient can find it hard to survive.
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Waitr Liquidates Assets and Dismisses Leadership
The company has decided to liquidate everything it owns and let go of its top leaders, including CEO Carl Grimstad.
This decision affects all branches of the business, including ASAP, Bite Squad, Catering on Demand, Cova, Delivery Logistics, Dude Delivery, and Waitr itself. This major step comes after the company started scaling down its operations in February 2024.
The company warned its shareholders that they probably won't get any money back for their shares because of bankruptcy.
In 2018, Tilman Fertitta, known for owning Landry's, bought Waitr through his company, Landcadia Holdings, for $308 million. The deal made Waitr a public company through a special merger known for helping companies go public quickly.
By buying Bite Squad, Waitr delivered food in 500 cities across 22 states. Despite these efforts to grow and a strategy focused on supporting small, local restaurants in mid-sized towns, Waitr couldn't keep up with the fierce competition in the food delivery market.
Adam Stein-Sapir from Pioneer Funding noted that ASAP's Chapter 7 bankruptcy filing indicates a slow business decline rather than a sudden shock. He highlighted that the issue seemed rooted in a business model that failed to generate sufficient revenue to cover debts.
Choosing Chapter 7, which leads to liquidation, over Chapter 11, which allows for reorganization, signals deep troubles. Stein-Sapir mentioned that ASAP is unlikely to operate again, even if parts of it are sold off. He concluded that creditors typically recover less in Chapter 7 cases, signaling bleak prospects for debt recovery from ASAP's liquidation.
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