Where Groceries Thrive

Fortune: An online startup called Thrive is attempting “to offer natural and organic goods at the price of the conventional non-organic equivalent … Thrive prices products to only cover the company’s costs to fulfill and ship, instead making the bulk of its money through a subscription model. The company charges a $60 membership fee, pegged to the cost of a Costco membership.”

“It’s Whole Foods-type products at Costco-like prices,” says co-CEO Nick Green. Thrive sells only non-perishables. “It’s where no one else wants to play,” Green says. “Fresh food is a blood bath right now. We said, let’s look at the part of the grocery that really shouldn’t be in the grocery store.” Thrive launched about two years ago and now has “about 150,000 members.” “We can’t scale the infrastructure fast enough to service the demand,” Green says.