Progressive Grocer 2021

Farmstead Moving Into Miami

By Bridget Goldschmidt  01/20/2021

The expansion of Farmstead continues apace: The e-grocer has opened the waitlist for service in its latest market, Miami. Waitlist signups will be limited to the first 1,000 customers, with service slated to begin late in the first quarter of 2021.

Miami will be Farmstead’s fifth market. The Burlingame, California-based company started out in the San Francisco Bay area, and now also serves Charlotte, North Carolina. It has also opened waitlists for service in Raleigh-Durham, North Carolina, and Nashville, Tennessee. Service in both of those markets will roll out in the first quarter of 2021.

"Miami is excited to see yet another company realize and take advantage of the opportunities that our city presents,” said Mayor Francis Suarez. “We welcome anyone who wants to bring their ideas and their talents to the ‘3-0-5,’ especially a company like Farmstead that is so committed to the community they serve."

“There are many reasons why Miami is a great fit for Farmstead,” noted Michael A. Finney, president and CEO of the Miami-Dade Beacon Council, the county’s official economic development organization, which is working closely with Farmstead to facilitate its expansion to Miami. “A network of local farmers and food producers offer a variety of high-quality local goods. Expertise in cold-chain logistics ensures a deep bench of diverse talent and established partners, while our vibrant tech ecosystem supports Farmstead’s continued innovation and growth.”

According to Farmstead, its “dark” warehouses, built for delivery only, enable it to expand more easily into new markets, reduce food waste by three to four times, and help eliminate food deserts by making fast, low-cost delivery available with an agile new model. In Miami, the company will provide, from one place, local brands such as Floribbean, Jennifer’s Homemade and Zak the Baker; national brands like Kraft and Nabisco; international/Latino brands; and fresh meats, dairy and produce.

Farmstead uses proprietary AI-based software, tied to the smaller-format dark warehouses, to determine optimal inventory levels; ensure efficient order picking, packing and/delivery and reduce food waste. These efficiencies enable the company to offer free delivery while keeping prices lower than those of local supermarkets and making fresh, high-quality groceries more widely available.

“We are thrilled to bring Farmstead from the Bay Area to Miami,” said Pradeep Elankumaran, the company’s co-founder and CEO. “Miami is a vibrant, modern city with a growing tech scene, the perfect profile for Farmstead’s online grocery service. We're excited to improve access to high-quality food, delivered right to their doorsteps, to every resident in Miami.”