Garg: Gobble aims to create a Spotify-like personalized taste map for meals
“Long term, we think about what is best for you to eat based on your genetics, your age, your background, your taste preferences, and we try to personalize food in the same way that Spotify has developed a fingerprint for music. We want to own that fingerprint …”
Garg: Gobble meal kits allow customers to cook fresh meals in 10 minutes
“We do all the prep work so that you can control the end result and cook in one pan in 10 minutes and have a fresh home-cooked meal for your family.”
Garg: Gobble relies on surveys and historical data for ingredient forecasting
“We rely so heavily on on user surveys, on past year behavior, and on watching how people evolve every single week to forecast exactly how much to procure of every single ingredient, and then to make the very best menus every single week, and especially for the…”
Garg: Modern food companies must operate as technology companies
“I think a modern food company has to be a tech company.”
Garg: Gobble's top holiday menu items are classic comfort foods
“The top selling items off our Thanksgiving menu are things like homemade biscuits and mashed potatoes. Even simple mashed potatoes above the sweet potato mash.”
Garg: Gobble maintains buffer inventory and standby trucks for failed deliveries
“We actually have emergency you know, trucks ready for overnight shipments, a certain buffer amount of every single dish. We did, we've been doing this for long enough to where we know how much buffer to make and how many missed deliveries we expect on any one …”
Garg: Gobble meal preferences shift from heavy comfort food to healthy options in January
“We go from all of our, all those biscuits and mashed potatoes to lots of salads and, you know, like shredded chicken or salmon and that kind of thing.”
Garg: 10% of Gobble's active user base is vegetarian
“About 10% of our user base right now is vegetarian.”
Garg: Consumers increasingly want meat as a garnish, not the main course
“We can see more people caring about health and food transparency and where their food comes from and so I slowly see more people eating they want meat as a garnish on their food as opposed to a center of plate every single time, which I think is, is great and …”
Garg: Gobble started with an $8-a-plate Craigslist ad for home-cooked meals
“Gobble just started very organically by me solving the problem for myself and posting a Craigslist ad and asking, hey, can anyone make me home cooked food for eight dollars a plate?”
Garg: Startups must scale without compromising LTV to CAC ratio and runway
“There's this sort of grow as fast as possible without breaking your core metrics, without breaking your LTV to CAC ratio and your cash burn and runway.”
Garg: Gobble reduced Facebook marketing dependency by 50% through channel diversification
“First thing she did is took our Facebook dependency down by 50% and started planting the seeds into other channels that are growing such that we can genuinely turn knobs up and down.”
Garg: Gobble achieved the highest customer LTV in the meal kit industry
“Even when our economics were strong and our customer LTV was the best in the industry”
Garg: Gobble avoided dirty VC terms that trapped competing meal kit startups
“I've been really conscious about the number of venture capitalists we work with, the amount of dilution we take, and expectations we set for ourselves, and avoiding any kind of tricky terms underneath the table, which I think other meal kit companies weren't a…”
Garg: Gobble originally launched as an Airbnb-like peer-to-peer food marketplace
“And the first version of Gobble was what we called peer-to-peer lasagna, and it was a marketplace similar to Airbnb, but for home cook to make food and deliver to everyday people”
Garg: Keith Rabois invested immediately after first meeting and recruited Reid Hoffman
“And by the end of the meeting, we had commitment and investment. And then he was messaging folks like Reed Hoffman, who then came in and other folks.”
Garg: Meal kit industry only serves 10-15% of population by income
“We're only serving 10 to 15% of the population by income, and I think there's a huge opportunity for the UberX of our industry to serve the mass market that actually needs this the most”
Garg: Gobble plans to hit multi-billion dollar valuation and revenue levels
“We have our plan to reach the multi-billion dollar valuation and revenue levels in the next upcoming years with a number of these efforts, and we just recently closed a deal with Walmart”
Garg: Tracking growth attribution from day one is critical for startups
“One of the first valuable innovations or features that we released into our product was the ability to accept promo codes, because attribution of your growth is extremely important from day one, or else I can't tell you what's working or not working.”
Garg: Gobble had 75% enterprise revenue when raising Series A
“When we went to raise Series A, the investors asked, how much of your money is from families, and the model you're pitching, and how much of your money is from catering, and from enterprise? And at that point, some 75% was from enterprise, because when you do …”
Garg: Made initial sales without a website for both startups
“In both my businesses, in the recruiting business and the chef business or the food business I have now I made initial sales without a website, and I proved our concept in the first three months before any other kind of funding.”
Garg: Gobble maintained a $40,000 average monthly burn before product-market fit
“Over those three and a half years of finding product market fit, our monthly burn was 40,000 dollars on average.”
Garg: Gobble had about $8,000 left before joining Y Combinator
“There was a time in 2013 when no one would invest in me, and I was running out of all of my money, and we had like one payroll in the bank. I think our bank was like 8000 dollars or something and that's when I did YC.”
Ooshma Garg: Selling Gobble Now Would Leave Billions on the Table
“Now we've started, like, you know, doubling or tripling year on year, And so, if someone were to acquire us now, and we can't weather the storm of a bad meal kit market, I think we're, like, leaving billions on the table.”
Garg: Great products require cross-industry domain experts over homogenous engineering teams
“What I would suggest to an entrepreneur is that real entrepreneurship comes from diverse perspectives and from innovating at the edge of different industries. It's really hard just to get 10 homogenous engineers in a room and, like, make something incredible. …”
Garg: Gobble raised only $200,000 on Y Combinator Demo Day
“Like, we raised 200 K on demo day.”
Garg: Gobble shut down previous business model at $1.5M to $2M ARR
“I shut down that personalized dinner service, and we were doing maybe, like, one and a half to two million in ARR, but it wasn't going anywhere, and the food wasn't different enough”
Garg: Gobble Aims to Become the 'Disney of the Home'
“In the 50 to a hundred year vision, I actually want Gobble to be, let's call it the Disney of the home, and I, my thing with Gobble is about creating magical experiences at home that are easy and fit into this busy life for any kind of person”
Garg: Gobble Employs Overseas Engineers Due to 14-Month Visa Delays
“Gobble actually has an engineering team in India and in South Africa, and, like, we're just waiting for the visas. And it's been, some people have been waiting for, like, 14 months, and they're still working for us remotely.”
Garg: Solo founders should crowdsource co-founder support from peer networks
“In the early days, what I say for single founders is, you kind of have, like, if you're swimming in the ocean, it's kind of like a net buoy system, so you have to find, like, three or six people that are, like, those orange buoys, and you're swimming by yourse…”
Garg: Gobble's Series B was hindered by Amazon-Whole Foods and Blue Apron
“Last year for our Series B, I had a very difficult time raising money. Like, it all looks fantastic, and there's lots of news and videos, but it, like, took every ounce of my being. It was the hardest fundraising, and it's because Amazon acquired Whole Foods, …”
Livingston: YC does not avoid startups stuck in the trough of sorrow
“We don't care if someone's in the trough of sorrow. That is our job to help you get out of the trough of sorrow. We've done it before. We'll continue to do it. There are ways out.”