Kune

Kune, a Kenyan food delivery startup, attempted to solve the fragmentation problem in Nairobi's restaurant market, where customers struggled to discover and order from local eateries efficiently. Small and mid-sized restaurants experienced this acutely—they lacked direct customer access and relied on foot traffic or word-of-mouth. The problem was measurable: Nairobi's growing middle class demanded convenience, and restaurants lost sales to competitors with better visibility. Alternatives like WhatsApp ordering and direct phone calls existed but lacked scale and consistency. However, Kune's fundamental miscalculation was underestimating unit economics in a price-sensitive market. The company charged commissions that squeezed already-thin restaurant margins while offering discounts to customers to drive adoption. Rising food costs worsened this dynamic. Warning signs emerged early: the business model depended on venture funding to subsidize growth rather than generating sustainable revenue. By June, unable to achieve profitability or secure additional investment, Kune collapsed after just one year, revealing that solving a real problem doesn't guarantee viability if the solution's economics don't work.