Evaluating only Merqueo’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Full Analysis
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Documented cause
Merqueo built an online grocery delivery service operating in Colombia, Brazil, and Mexico. After raising $50M it expanded aggressively to three countries before achieving sustainable unit economics in its home market. Delivery costs, high perishable inventory waste, and low average order values in the Colombian market made scaling unprofitable. Merqueo shut down Colombian operations in 2023.
Lesson
“Online grocery requires a minimum basket size to cover delivery economics. If your target market's average household grocery spend doesn't support the required basket, the model doesn't work regardless of execution quality.”
FAQ
Why did Merqueo fail?
Merqueo, a Colombian online grocery startup, shut down its Colombian operations in 2023 after failing to achieve sustainable unit economics. Delivery costs and low average order values in Colombia made the model unprofitable despite $50M in funding.