Farmstead Sets Up Shop in Miami

Online grocer Farmstead is now live and delivering in Miami, the Burlingame, Calif.-based company announced.

South Florida—as far north as Boynton Beach and as far south as Key Largo—becomes the fourth market in which Farmstead is up and running. Besides its Bay Area home market, the company also currently operates in Charlotte and in Raleigh-Durham, N.C. Service in Austin is expected to debut later this summer, and the company aims to be open in at least a dozen markets by the end of 2021.

Farmstead, which earlier this month expanded its Refill & Save grocery reorder offering, stated in a news release that it already has signed up thousands of customers in the Miami area. "We are particularly thrilled to tap into South Florida's vibrant agricultural community in order to offer their produce to shoppers in the region," CEO Pradeep Elankumaran said. 

Farmstead delivers national CPG brands as well as local produce and other regional offerings from its dark-store warehouses, which serve customers within a 50-mile radius. The company offers same-day delivery and targets midmarket shoppers who typically make three to four grocery purchases a week, Farmstead business development director Linda Lee told WGB. "We know that our customers are also going to be shopping elsewhere, but we want to capture as much of that basket as possible," Lee said. 

More than 80% of Farmstead customers use the service weekly, according to the company. In April, Farmstead announced a partnership with DoorDash meant to boost the former delivery specialist's profile in new and existing markets and expand customers' access to one-hour delivery. The company has brought in more than $14 million in funding as it seeks to gain ground in the increasingly competitive grocery-delivery marketplace.