Good Eggs online farmers' market shuts down its operation in Brooklyn, New Orleans and Los Angeles

Good Eggs, the online organic grocery store, is shutting down its operation in New Orleans, Los Angeles and Brooklyn.

"With a heavy heart, I'm announcing that effective Friday, we will be closing our operations in Los Angeles, Brooklyn and New Orleans and reducing staff at our San Francisco HQ," CEO Rob Spiro wrote on Good Eggs' blog August 5.

Headquartered in San Francisco, it's cutting back its service in Brooklyn, New Orleans and Los Angeles. The company will also cut jobs in its San Francisco office. All in all, it would sum up to 140 employees, the Silicon Bayou News reported.

Good Eggs started raising funds in 2011. Since then, it accumulated $52.5M, stated on CrunchBase.

Good Eggs was founded by Rob Spiro and Alon Salant. The concept is paralleled from a grocery store offering farm-produced goods in a more convenient way; pick your order straight from almost 300 local farmers via online, they will harvest and deliver it fresh for free.

Forbes mentioned that when it was launched in the Bay Area, San Francisco in 2013, the company focused on expanding its service immediately. They pulled it off by 18 months opening locations in New Orleans, Los Angeles and Brooklyn.

Spiro admitted their mistake. He wrote that they didn't have a full understanding of the new area they are creating, that it requires a different strategy in managing the business; from getting the produce from local farms to bringing them to customers' kitchens.

Unlike with other types of business, he explained it's more difficult to solve miscalculations in a food and logistics industry because it involves people and business partners. Though it may seem, he affirmed they need to correct it and move forward with their mission.

The remaining $21M capital intended to be used for its outlets will be used for product improvements in the Bay Area.