Once heralded as one of Canada’s rising stars in the tech scene, Ritual Technologies Inc. saw its fortunes plummet following the COVID-19 pandemic. The popular food-takeout app, which boasted revenues exceeding $50 million and a valuation over $300 million by late 2019, faced a dramatic downturn as office workers began staying home—all but obliterating its customer base.

Fast forward to the present day, and the co-founders of Ritual, Ray Reddy and Larry Stinson, have made the strategic decision to leave their once-thriving enterprise to join Shopify Inc., the powerhouse e-commerce platform that thrived during the pandemic. Their move marks a significant transformation for both the founders and the company they leave behind.

On social media, Reddy announced that alongside several exceptional members of Ritual's research and development team, they would bring their talents to Ottawa-based Shopify, Canada’s second-most valuable publicly traded company. Shopify's president, Harley Finkelstein, and CEO Tobi Lütke were quick to welcome the new cohort, affirming their excitement over Reddy's expertise and vision. On X (formerly Twitter), Lütke emphasized how Shopify's ethos revolves around empowering founders to innovate and create new markets.

As Reddy transitions into the role of vice president of retail at Shopify, focusing on the company’s point-of-sale products, he reassured followers that Ritual would continue to operate under new leadership, although his comments on the company’s future were sparse. Insider sources have described the move as an "acqui-hire,” suggesting Shopify’s interest in acquiring talent rather than the struggling business itself. While Ritual is anticipated to find new buyers—preliminary discussions are already in motion with at least two interested parties—Ritual's future hangs in the balance.

Ritual, co-founded by Reddy and Stinson in 2014, emerged from the remnants of their previous startup, PushLife, which Google acquired in 2011. With initial backing from prominent venture capitalists like Greylock Partners and Insight Partners, Ritual quickly gained traction, integrating its service into over 10,000 restaurants across North America, Europe, Asia, and Australia. Users loved the seamless experience of ordering and paying through the app, allowing them to skip the line at their favorite eateries.

The onset of the pandemic dealt a devastating blow to Ritual, causing a staggering 70% drop in traffic by March 2020. Restructuring efforts led to significant layoffs, with the once-booming workforce reduced to fewer than 50 employees. Despite this harsh reality, the leadership team sought new avenues to keep the product relevant, even pivoting data-driven AI technologies to help local businesses, which provided some revenue relief.

Nevertheless, despite attempting to innovate, Ritual’s revenue projections continued to decline, plummeting from $11 million in 2021 to a projected $3.9 million in the first half of 2024. The company's financial health worsened following multiple funding rounds, leading it to struggle under a weighty ownership structure overwhelmed by loss-making investors.

In the wake of Ritual's demise, the survival of the company's legacy remains uncertain as the founding duo embarks on a new venture with Shopify. This transition presents a bittersweet chapter: it underscores the harsh realities faced by many startups in a post-pandemic world while highlighting the resilience required to adapt to an ever-evolving technology landscape. Will Shopify’s new recruits reignite their entrepreneurial spark, or will they merely fade into a mere footnote of a once-promising narrative? Only time will tell!