Delivery startup Imperfect Foods bumps prices on logistics woes

Grocery delivery startup Imperfect Foods Inc. is the latest company to raise its prices as a result of widespread supply-chain issues.

The San Francisco-based company, which operates as a subscription service, said disruptions ranging from port congestion to labor shortages, coupled with higher costs for materials such as fuel and cardboard, are having an impact on both Imperfect Foods and its suppliers, Chief Operating Officer Neil Neufeld wrote in an email to customers. In an effort to counter some of these issues, the firm is requesting customers return packaging and using more efficient delivery routes that consume less fuel. 

“This means that you may see a price increase for some of our items the next time you shop with us,” Neufeld said in the email.

Imperfect markets itself to environmentally conscious consumers, advertising that its model reduces waste by using produce that is superficially blemished and otherwise would be thrown out. As of 2020, the company reporting having more than 400,000 customers nationwide. The company didn’t immediately respond to a request for comment.

U.S. shipping has experienced record-breaking backlogs this year due to bottlenecks at ports, labor shortages, aging infrastructure and stretched rail networks. Pandemic workplace restrictions have exacerbated problems. 

These bottlenecks have persisted despite companies’ best efforts to overcome them, prompting the creation of a White House-led task force.