Gorillas (company)

Gorillas is a German on-demand grocery delivery company with the promise of delivering groceries within 10 minutes of ordering by using dark stores.[2] The users can order and receive the grocery products through the Gorillas app. As of November 2022, it has been serving in circa 40 cities across nearly 200 warehouses in six countries, following the sale of its Belgium stores to Efarmz and its withdrawal from both Italy and Spain.[3][4][5]

Gorillas
IndustryOnline platform for convenience delivery
FoundedMay 2020; 2 years ago (2020-05) in Berlin, Germany
FounderJörg Kattner, Kağan Sümer, Ronny Shibley (co-founder)
Headquarters,
Areas served
Germany, Netherlands, United Kingdom, France, Denmark, United States
Number of employees
~10,000 (as of November 2022)[1]
Websitegorillas.io/en
Gorillas bikes outside one of their dark stores

HistoryEdit

The company was founded in May 2020 by Kağan Sümer, Jörg Kattner, Jeff Hester, and Ronny Shibley in Berlin. They promised to deliver groceries and other supermarket goods ordered through its app via bike courier at the same prices as they charge in the supermarket. Although, it initially started in Berlin, it rapidly spread to dozens of European cities as well as opening stores in America. Today, Gorillas operates in numerous European cities including Amsterdam, London, Paris and Munich, in addition to New York, USA.[6] In December 2020 the company raised $44 million in Series A funding, followed by $290 million in Series B funding in March 2021 and almost $1 Billion in Series C funding in October 2021.[7][8][9] After the last investment round, the startup is valued at 1 billion, thus reaching unicorn status as the fastest startup ever in Germany (after only 9 months).[10]

Sümer has stated the aim to raise $700 million dollars of new financing this year to scale-up the company and turn it into a profitable business.[11][12]

In June 2022, Gorillas announced it would launch its own products for sale in Germany, France, the Netherlands and England. Among the items sold under the new Gorillas label are spreads, pasta, coffee and beer.[13]

Following its rapid expansion in the first two years of its existence, Gorillas subsequently failed to live up to financial expectations. As such, throughout 2022 it was forced to close all its stores in Belgium, Italy, Spain and England (with the exception of London) as well as having to snuff out plans of entering the market in other nations such as Switzerland and Australia, among others. Amid its poor economic performance, Gorillas entered negotiations to sell itself to the Istanbul-based competitor Getir. The acquisition of Gorillas by Getir was announced on 9 December 2022.[14]

Business modelEdit

Gorillas uses the slogan faster than you to emphasize the speed of delivery.[7]

The business model is based on the American model goPuff, which was founded in Philadelphia in 2013.[15]

Gorillas stores offer a selection of over 2000 products including fresh fruits and vegetables, drinks as well as favorite household items, which are delivered by employed bicycle couriers. Exhibiting an environmentally-friendly attitude by minimizing the traffic and exhaust gas emissions with its concept of delivery by bicycle, Gorillas prioritizes another of its corporate responsibilities by obviating the need to stock food at home and thereby vastly reduces food wastage.[6] Any food not sold within the best-before date is either handed to employees for free, given to charity or local food banks, or sold to customers at a significantly reduced cost.

ControversiesEdit

Gorillas has been the subject of criticism by its workers for terrible working conditions, including inadequate equipment, high pressure to deliver quickly, and deliveries weighing too much, causing many to complain of back pain. Additionally, riders report not being paid correctly or on time for their work.[16]

In October 2021 Gorillas fired dozens of employees for participating in a wildcat strike.[17] According to the Gorillas Workers Collective, which "represents the company's non-unionised delivery workers", the number of fired workers was 350.[18]

Since November 2021, Gorillas reported that it has taken new steps to improve the working conditions of its cyclists. The company, which purchased 1,200 state-of-the-art e-bikes specially designed to meet the cyclists’ needs, renewed all its cyclists’ equipment including PPE.[19] The company offers its 10,000 employees benefits such as health insurance, a salary above the minimum wage, paid leave and a complete riders' kit. In Germany, the Netherlands and England, Gorillas has introduced a bonus scheme for its riders.[20]

InvestmentsEdit

Gorillas, which has been the focus of high-value investments since the day it was founded, has become one of the companies with the fastest rising value and has become a leader in Europe. Gorillas, which rose in value in the Series A funds by $44 million in December 2020, in the Series B financing by $290 million in March 2021, and in the Series C funds by approximately $1 billion in October 2021, has added a new one to its investment and business partners. Gorillas is tightening its grip on the European flash delivery market: the Berlin-based company has acquired French competitor Frichti and concluded a remarkable alliance with Just Eat.[21][22][23]

LocationsEdit

Gorillas operates in approx. 40 cities across six countries as of November 2022.[24]

Country Cities
Germany Augsburg, Berlin, Bonn, Bremen, Cologne, Darmstadt, Dresden, Düsseldorf, Essen, Frankfurt, Fürth, Hamburg, Hannover, Heidelberg, Karlsruhe, Leipzig, Mannheim, Munich, Nuremberg, Offenbach, Stuttgart
Netherlands Amsterdam, Arnhem, Eindhoven,The Hague, Groningen, Haarlem, Leeuwarden, Leiden, Nijmegen, Rotterdam, Tilburg, Utrecht
United Kingdom London
France Bordeaux, Lille, Lyon, Nice, Paris
Denmark Copenhagen
USA New York City

See alsoEdit

ReferencesEdit

  1. ^ "Gorillas held its first ever Partner Conference".
  2. ^ Darmody, Jenny (March 26, 2021). "Grocery delivery start-up Gorillas hits unicorn status". Silicon Republic.
  3. ^ "Gorillas announces deal with Efarmz in Belgium".
  4. ^ "Gorillas lascia l'Italia e licenzia i suoi dipendenti". 4 July 2022.
  5. ^ "Groupe Casino: Casino Group and Gorillas announce the signing of a strategic memorandum of understanding". Bloomberg.
  6. ^ a b "Gorillas is carbon neutral in all own operations". Gorillas Blog.
  7. ^ a b "Gorillas, the on-demand grocery delivery startup taking Berlin by storm, has raised $44M Series A".
  8. ^ "Gorillas, the on-demand grocery delivery startup, raises $290M and 'surpasses' $1B valuation".
  9. ^ "Gorillas grabs 'close to' $1BN, Series C values the on-demand grocery delivery biz at $2.1BN".
  10. ^ Mrz 2021, Lisa Ksienrzyk 31 (March 31, 2021). "Exklusiv: Gorillas steigt mit 245-Millionen-Runde zum Unicorn auf". Business Insider.
  11. ^ "Startup Gorillas Planning to Raise $700 Million of New Funding". Bloomberg.
  12. ^ PYMNTS (2022-02-27). "Delivery Startup Gorillas Looks to Raise $700M". www.pymnts.com. Retrieved 2022-02-28.
  13. ^ "Gorillas enters the private label market".
  14. ^ Cantrill, Aggi; Kandemir, Asli; Tan, Gillian (9 December 2022). "Rapid-Delivery Startup Getir Buys Rival Gorillas in $1.2 Billion Deal". Bloomberg. Retrieved 9 December 2022.
  15. ^ "Der rollende Supermarkt: Gorillas verspricht die 10-Minuten-Lebensmittel-Lieferung in Berlin". Supermarktblog (in German). 2020-06-08. Retrieved 2022-01-21.
  16. ^ Geiger, Gabriel. "Riders for Europe's Delivery 'Unicorn' Report Grueling Delivery Times and Back Pain". vice.com. Vice. Retrieved 5 December 2021.
  17. ^ Geiger, Gabriel. "Gorillas Delivery App Fires Workers for Striking". vice.com. Vice. Retrieved 5 December 2021.
  18. ^ Bateman, Tom (8 October 2021). "Gorillas delivery app fires hundreds of Berlin workers for strikes over pay and working conditions". euronews.com. Euronews. Retrieved 5 December 2021.
  19. ^ "Gorillas is renewing its fleet with 1,200 e-bikes". Gorillas Blog.
  20. ^ "It Pays To Ride With Gorillas". Gorillas Blog.
  21. ^ "Gorillas to acquire Frichti in latest instant grocery consolidation". TechCrunch.
  22. ^ "Gorillas finalises Frichti acquisition". Charged.
  23. ^ "Gorillas acquires Frichti, joins Just Eat collaboration". RetailDetail.
  24. ^ "Delivery areas". gorillas.io.

External linksEdit