Food Delivery Service Is Now At High Risk of Bankruptcy

April 2, 2024

A food delivery service is now at high risk of bankruptcy after its business model failed to keep up with its innovative competitors.

Back when it was known as Waitr, the company that later became ASAP became a fast success in the food-delivery space.

The company, which listed on Nasdaq in 2018, offered delivery services in 500 cities across 22 states.

Rebranded as ASAP, the company fell out of compliance with Nasdaq, and despite a short-term covid lockdown comeback, it has struggled for years, reports TheStreet.

Now, the company has officially closed its doors.

Visitors to ASAP’s homepage are greeted with a letter that’s headlined “Goodbye for now.”

“With a heavy heart, we share the news of the closure of our delivery and carryout business,” the company posted.

“After years of dedicated service, we’ve made the tough decision to cease operations.

We write to you today filled with gratitude for your unwavering support and loyalty throughout our journey.”

The former Waitr adopted the ASAP name in 2022 to signal a change in its business model.

“ASAP’s new vision is delivering to consumers, same day, from any type of business,” the company said at the time.

“In preparation for the rebrand, the company accelerated the expansion of its services in recent weeks, signing agreements to launch delivery of a wide variety of items such as alcohol, sporting goods, luxury apparel, auto and electrical parts, and other need it now products.”

Uber, DoorDash and others have also experimented with the model, but it’s also a crowded space with Instacart as the established leader.

It was not a success for ASAP, which on April 1 filed an 8-K with the Securities and Exchange Commission detailing its shutdown and potential next steps.

“On the evening of March 29, 2024, the online ordering services segment of Waitr Holdings Inc. which includes operations related to the company’s technology platform for online ordering, ceased operations with respect to carryout services,” according to the post.

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Also Read: Famous Retailer Is Now Laying Off 614 People in California

Other Economy News Today

A massive bank is now laying off 430 workers in June according to four notices posted Monday with the state’s Department of Labor.

Citi has announced that 430 workers will be laid off on June 29.

The staff cuts encompass 363 employees in Citi’s primary banking unit, 62 in its global markets broker-dealer, four in technology and one in its Citishare unit, according to the Worker Adjustment and Retraining Notifications.

Monday’s cuts follow a wave of 286 New York-based job reductions, set to take effect by early May, that the bank posted in February.

Citi announced last week it had “concluded the major actions” associated with its multi-stage reorganization, which the bank launched in September.

The moves eliminated five layers of leadership and consolidated roles with overlapping responsibilities, reports Banking Dive.

Citi CEO Jane Fraser said in January the bank had cut 1,500 managerial roles.

The bank is aiming to trim 20,000 roles from its headcount by 2026.

The reorganization is meant to save the bank $1 billion in annual costs.

Among the hardest-hit units in Citi’s most recent cuts is technology, media and telecom, people familiar with the matter told Bloomberg.

Yaseen Choudhury and Abhi Singhal, both managing directors on the financial technology team, have left the bank, sources told the wire service.

Equity capital markets, debt capital markets, financial sponsor coverage and clean technology banking also saw cuts, the sources told Bloomberg.

Juan Carlos George, the managing director leading Citi’s equity capital markets efforts for Latin America, is among those who have left the bank, the wire service reported.

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Also Read: A US Bank is Now Denying Customers Access to Money

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