ASAP Food Delivery Startup Files for Bankruptcy

ASAP, formerly known as Waitr, has announced the cessation of its delivery and carryout business operations, accompanied by a Chapter 7 bankruptcy filing. The decision, communicated through an 8-K form submitted to the U.S. Securities and Exchange Commission on April 2, 2024, marks the end of a journey fraught with both achievements and setbacks.

The resolution to file for bankruptcy follows a weekend announcement from Waitr Holdings, Inc., the parent company of ASAP, declaring the cessation of operations. This move signals the termination of nearly all business activities conducted by ASAP.

ASAP’s origins trace back to its inception as Waitr in 2013 at McNeese State University in Lake Charles, Louisiana. Initially, the company experienced rapid expansion, buoyed by its acquisition in 2018 by Landcadia Holdings, owned by Tilman Fertitta. The subsequent public listing through a SPAC merger added momentum to its growth trajectory.

However, challenges emerged along the way. A legal dispute over trademark infringement prompted a rebranding in 2022, leading to the adoption of the name ASAP. Despite efforts to diversify its services, including ventures into retail items and in-stadium ordering at sporting events, ASAP struggled to maintain its competitive edge in an increasingly crowded marketplace dominated by industry giants like DoorDash and Uber Eats.

The fallout from ASAP’s closure extended beyond its operational boundaries. In January 2023, more than 50 employees were laid off from its Lafayette office following reported losses of $74.5 million in the third quarter of 2022. These layoffs underscored the broader financial challenges faced by ASAP and its parent company.

The bankruptcy filing represents a significant turn of events for a company that once operated in approximately 1,000 cities across the United States.