Online grocer Farmstead has gone live with deliveries in Charlotte, NC. Currently, Farmstead offers same-day delivery to all zip codes in the city of Charlotte. The delivery area will be rapidly expanded in the coming weeks to the Charlotte suburbs.
Charlotte is Farmstead’s first expansion market - Farmstead’s “dark” warehouses greatly ease entry into new geographies, reduce food waste by 3-4x and help eliminate food deserts by making fast, inexpensive delivery available with a new model. With Farmstead, customers can get all of their groceries – high-quality local brands such as Cheerwine and Sundrop, national brands such as Kraft, Nabisco and fresh meats, dairy and produce – from one place.
Earlier this week, Farmstead announced its second expansion market - Raleigh-Durham, NC - and a $7.9M funding round intended to help the company accelerate its geographic expansion and ramp hiring.
How it Works
Farmstead works with local farmers and national distributors to stock up on consumers’ favorite products, including fresh produce and family-friendly national brands. Consumers go to Farmstead to set up an account and order, and the groceries are hand-selected and inspected by Farmstead’s team at its dark stores. Farmstead then groups deliveries together to deliver to customers and their neighbors at the same time to help reduce carbon emissions. Customers can also sign up for a regular “Weekly Program” and get a 5% discount each time they buy the same product again.
Farmstead’s proprietary AI-based software tied to its smaller-format dark stores helps determine optimal inventory levels, ensure efficient order picking/packing/delivery, and reduce food waste. These efficiencies enable Farmstead to deliver for free while keeping prices lower than local supermarkets, and making fresh, high-quality groceries accessible to all.
“Since announcing our service for Charlotte last month, we quickly filled our waitlist,” said Pradeep Elankumaran, co-founder and CEO of Farmstead. “We moved fast to begin our delivery service before Thanksgiving as we know with stay-at-home directives people will be cooking at home and looking to get high quality groceries delivered right to their doorstep. As we’ve done in San Francisco, we’ll quickly expand our service area in the greater Charlotte area to accommodate the high demand.”