Avo

Avo launched in 2018 with a compelling thesis: residential and office buildings represented untapped distribution channels for consumer goods. ​​‌‌‌‌‌‌‌​‌‌​​‌​​​​​​‌‌​‌‌‌​​​‌‌Early signals looked promising—building managers expressed enthusiasm about offering amenities, and residents showed interest in convenience. The team measured traction through building partnerships and order volume, securing deals with several Manhattan properties. Initial orders came through, suggesting genuine demand beyond casual interest. However, critical warning signs emerged. While residents *said* they wanted the service, actual repeat purchase rates remained low. The unit economics proved brutal—delivery costs to individual units within buildings exceeded margins, and buildings demanded revenue splits that made profitability impossible. The team had conflated building manager enthusiasm (who saw free amenities) with resident willingness to pay premium prices for convenience they could access elsewhere. They'd validated stated preference rather than revealed preference through sustainable purchasing behavior. Without solving the fundamental cost structure, Avo couldn't scale beyond pilot programs.