Food delivery startup Wonder has eliminated 150 jobs, representing 7% of its workforce, to reinvest in robotics and automation. The company, founded by Marc Lore, who previously led Walmart.com, operates 140 retail locations primarily in the Northeast, offering gourmet takeout meals from celebrity chefs and well-known restaurants.
In a statement, a Wonder spokesperson said the layoffs affected "multiple corporate teams" and were made to "focus our resources on key growth areas like physical expansion and investments in robotics and automation." The company emphasized that no stores were closed and it plans to increase its number of locations to 175 by the end of the year.
These cuts follow a $650 million investment round in July, which valued Wonder at $9 billion. Since its launch in 2018, the New York City-based company has raised over $3 billion and is preparing for a potential initial public offering within the next one to two years. Wonder has also made significant acquisitions, including the food delivery platform Grubhub for $625 million last year and meal kit company Blue Apron in 2023 for $103 million.
Wonder's business model utilizes an "all-electric kitchen design" that does not require traditional restaurant hoods, gas, or open flames, allowing for rapid expansion. The company initially operated as a mobile kitchen before pivoting to its current brick-and-mortar take-out concept in 2023.
Despite its rapid growth and investment, Wonder faces financial challenges. The company does not anticipate becoming cash flow positive until 2030 and is projected to burn nearly $2.7 billion in cash through 2029, according to a report by The Information. Retail consultant Brittain Ladd suggested that Wonder is "blitzscaling" to create an image of high demand and attract investors for a successful IPO, opening new restaurants rapidly.
Wonder's menu features meals from approximately 30 restaurant brands, and it has acquired several food businesses, including Blue Ribbon Chicken, Mighty Quinn's BBQ, and Salt Hank's.