Unfortunately seemed like there were hints of this eventual demise when Gagan was interviewed by Jason Calacanis: http://thisweekinstartups.com/gagan-biyani-sprig/.

YC-backed SpoonRocket had just announced their shutdown, and Gagan was put on the defensive. Touting unit economics, an optimized menu, and food delivery innovation, the reality was, as others have mentioned, the company was a glorified restaurant with delivery. Ultimately I do think these companies made an impact but may have been a few years to early (pre self-driving). High-quality, healthy, on demand food is an inevitability but the labor costs are still prohibitive. I'm genuinely excited for the day I can get a delivered grilled, free-range chicken breast and seasonal veggies for $6!