Continuing a rapid U.S. expansion, Farmstead has begun a customer waitlist for online grocery service in Nashville.
The Burlingame, Calif.-based online grocer, which uses proprietary technologies and a “dark store” model enabling it to offer free delivery of groceries at prices comparable to or lower than stores, earlier this year launched service in Charlotte, N.C., and plans to begin service in Raleigh Durham, N.C., early next year. Founded in 2016, Farmstead has ambitions to launch in 14 new cities in 2021, coming off a round of financing announced last month.
Nashville service is expected to begin late in first-quarter 2021.
“Nashville is a great fit for Farmstead delivery; it’s a thriving, densely populated city that fits our mid-market profile customers who want their favorite brands and fresh groceries, all delivered to their doorstep with no markups,” Pradeep Elankumaran, co-founder and CEO of Farmstead, said in a release. “Farmstead cracked the code on how to make grocery delivery fast and inexpensive without sacrificing quality or wasting food, and we’re excited to roll out our service to Nashville residents in early 2021.”
Farmstead said it would expand by opening a series of “dark stores,” or small warehouses, that can support deliveries in a 50-mile range and can be rapidly and affordably acquired and opened. About 75% of Farmstead’s customers are part of a weekly recurring delivery program, which reduces complexity and helps to manage costs. Farmstead said it its system also reduces food waste.
An earlier version of this story misidentified the number of new markets.