Austin, Texas-based delivery startup Favor announced on June 17 that it was shutting down service in five major U.S. cities — among them Chicago, Atlanta, Miami, Philadelphia and our very own Washington, D.C. Favor initially launched in D.C. in late September 2015.

In a prepared statement Favor CEO Jag Bath was careful to paint the departures as a natural part of a startup learning about its ideal market though experimentation. “At Favor, we fully embrace learning about the communities we serve,” he wrote. “After experimenting in cities of varying size, Favor is choosing to employ our smart-scaling growth plan in tier 2 markets.”

Evidently, D.C. is not a tier-two market. But what does that mean, exactly?

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