Gorillas (company) explained

Gorillas
Industry:Online platform for convenience delivery
Defunct:May 2024
Hq Location City:Berlin
Hq Location Country:Germany
Areas Served:Germany, Netherlands, United Kingdom, United States

Gorillas was a German ultrafast grocery delivery company which used dark stores between its founding in 2020 and its end in May 2024.[1] Users could order grocery products through the Gorillas app.

In December 2022, the company was acquired by Getir.[2] As of July 2023, it operates in around 35 cities from roughly 130 locations in four countries. It sold its Belgium operations to Efarmz and withdrew from Italy, Spain, Denmark, and most recently France.[3] [4] [5] In June 2023, it was announced that Getir-owned Gorillas would begin withdrawing from France. In April 2024, Getir and Gorillas announced their withdrawal from all its operating locations with only Getir remaining in operation in its home market of Turkey.[6]

History

The company was founded in May 2020 by Kağan Sümer, Jörg Kattner, Jeff Hester, and Ronny Shibley in Berlin. They aimed to deliver groceries and other supermarket goods ordered through its app by bike courier, charging supermarket prices.

Initially starting in Berlin, it rapidly spread to dozens of European cities and expanded in America. Today, Gorillas operates in cities including Amsterdam, London, Paris, Munich and New York, USA.[7]

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.[8] [9] [10] The last investment round, valued the startup at 1 billion, making it a unicorn in just 9 months, the fastest company in Germany to do so.[11]

Sümer stated in 2022 that his aim was to raise $700 million of new financing to expand the company and make it profitable.[12] [13]

In June 2022, Gorillas announced it would launch its own products for sale in Germany, France, the Netherlands and England. Items sold under Gorillas label include spreads, pasta, coffee and beer.[14]

Following its rapid expansion in the first two years of its existence, Gorillas failed to live up to financial expectations. As a consequence, in 2022 it ended operations in Belgium, Italy and Spain. In England it closed all operations with the exception of those in London. It also cancelled plans to enter other markets such as Switzerland and Australia.[15]

In December 2022 Getir, a competitor based in Istanbul, acquired Gorrilas for $1.2bn.[16] [2] [17]

Business model

Gorillas' slogan is faster than you, emphasizing speedy delivery.

The business model is based on that of goPuff, which was founded in Philadelphia in 2013.[18]

Gorillas sells over 2000 products including fresh fruit and vegetables, drinks and some household items, which are delivered by bicycle couriers. Food not sold within the best-before date is either given employees, given to charity or local food banks, or sold to customers at a significant discount.

Controversies

Some employees have criticized Gorillas for bad working conditions, including inadequate equipment, pressure to deliver quickly, and deliveries weighing too much, causing many to complain of back pain. Riders also report not being paid correctly or on time.[19]

In October 2021 Gorillas fired 350 employees in Berlin for participating in a wildcat strike.[20] According to the Gorillas Workers Collective, which "represents the company's non-unionised delivery workers".[21]

In November 2021 the company purchased 1,200 state-of-the-art e-bikes specially designed to meet its cyclists' needs and renewed all its cyclists' equipment including PPE.[22] The company said that it offered its 10,000 employees benefits including health insurance, a salary above the minimum wage, paid leave and a complete riders' kit. In Germany, the Netherlands and England, Gorillas introduced a bonus scheme for its riders.[23]

In February 2023, The Independent reported that Gorillas' “Whatever London Wants” advertising campaign had been "banned over ‘irresponsible’ drug, sex and alcohol content" and for "featuring 'irresponsible' references to drug use and excessive alcohol consumption." The watchdog stated "that the adverts normalised illicit drug use and harmful drinking."[24]

Investments

Gorillas has been the focus of high-value investments since it was founded. Gorillas' value in round A funds rose by $44 million in December 2020, in round B financing by $290 million in March 2021, and in round C funds by approximately $1 billion in October 2021. The company acquired French competitor Frichti and entered into an alliance with Just Eat.[25] [26] [27]

Locations

Gorillas used to operate in around 35 cities across four countries, prior to it closing permanently in May 2024.

CountryCities
GermanyAugsburg, Berlin, Bonn, Bremen, Cologne, Darmstadt, Dresden, Düsseldorf, Essen, Frankfurt, Fürth, Hamburg, Hannover, Heidelberg, Karlsruhe, Leipzig, Mannheim, Munich, Nuremberg, Offenbach, Stuttgart
NetherlandsAmsterdam, Arnhem, The Hague, Haarlem, Nijmegen, Rotterdam, Utrecht
United KingdomLondon
United StatesNew York City

See also

Notes and References

  1. Web site: Grocery delivery start-up Gorillas hits unicorn status. Jenny. Darmody. March 26, 2021. Silicon Republic.
  2. News: Turkish quick delivery company Getir to buy rival Gorillas in $1.2b deal. Tuncay. Ebru. Dey. Mrinmay. DealStreetAsia. 2022-12-09.
  3. Web site: June 23, 2022 . Gorillas announces deal with Efarmz in Belgium . Gorillas Blog.
  4. Web site: Simonetta . Biagio . Gorillas lascia l'Italia e licenzia i suoi dipendenti . Gorillas leaves Italy and fires its employees . 4 July 2022 . it . Il Sole 24 Ore.
  5. News: 4 November 2021 . Groupe Casino: Casino Group and Gorillas announce the signing of a strategic memorandum of understanding. Bloomberg .
  6. Web site: Knieps . Lisa Ksienrzyk, Stephan . 2024-04-24 . Lieferdienst: Getir und Gorillas verschwinden Mitte Mai aus Deutschland . 2024-04-29 . www.wiwo.de . de.
  7. Web site: March 14, 2022 . Gorillas is carbon neutral in all own operations. Gorillas Blog.
  8. Web site: O'Hear. Steve. December 11, 2020. Gorillas, the on-demand grocery delivery startup taking Berlin by storm, has raised $44M Series A. TechCrunch.
  9. Web site: O'Hear. Steve. March 25, 2021. Gorillas, the on-demand grocery delivery startup, raises $290M and 'surpasses' $1B valuation. TechCrunch.
  10. Web site: Lomas. Natasha. October 19, 2021. Gorillas grabs 'close to' $1BN, Series C values the on-demand grocery delivery biz at $2.1BN. TechCrunch.
  11. Web site: Exklusiv: Gorillas steigt mit 245-Millionen-Runde zum Unicorn auf. Exclusive: Gorillas rises to Unicorn with 245 million round. Lisa. Ksienrzyk. March 31, 2021. Business Insider. de.
  12. News: Levingston . Ivan . Tan . Gillian . Tse . Crystal . February 25, 2022 . Startup Gorillas Planning to Raise $700 Million of New Funding . Bloomberg .
  13. Web site: . 2022-02-27 . Delivery Startup Gorillas Looks to Raise $700M . 2022-02-28 . PYMNTS . en-US.
  14. Web site: June 6, 2022. Gorillas enters the private label market . Gorillas Blog.
  15. Web site: Lunden . Ingrid . 2022-05-24 . Berlin's Gorillas lays off 300, exits four markets . 2023-04-17 . TechCrunch . en-US.
  16. News: Cantrill . Aggi . Kandemir . Asli . Tan . Gillian . Rapid-Delivery Startup Getir Buys Rival Gorillas in $1.2 Billion Deal . 9 December 2022 . Bloomberg . 9 December 2022.
  17. Web site: Cameron . Isabel . 2023-03-01 . Getir to cut hundreds of jobs as it delays office move . Charged . 2023-03-13 . en-US.
  18. Web site: Schader. Peer. 2020-06-08. Der rollende Supermarkt: Gorillas verspricht die 10-Minuten-Lebensmittel-Lieferung in Berlin. The rolling supermarket: Gorillas promise 10-minute food delivery in Berlin. 2022-01-21. Supermarktblog. de-DE.
  19. Web site: Geiger. Gabriel. May 24, 2021. Riders for Europe's Delivery 'Unicorn' Report Grueling Delivery Times and Back Pain. 5 December 2021. vice.com. Vice.
  20. Web site: Geiger. Gabriel. October 5, 2021. Gorillas Delivery App Fires Workers for Striking. 5 December 2021. vice.com. Vice.
  21. Web site: Bateman. Tom. Gorillas delivery app fires hundreds of Berlin workers for strikes over pay and working conditions. 5 December 2021. euronews.com. 8 October 2021. Euronews.
  22. Web site: Gorillas is renewing its fleet with 1,200 e-bikes . Gorillas Blog . 23 November 2021. Berlin.
  23. Web site: Riders share their feedback on new bonus program. Gorillas Blog . 14 January 2022.
  24. Adverts for food delivery service banned over 'irresponsible' drug, sex and alcohol content. Andy. Gregory. The Independent. 16 Feb 2023. 16 Feb 2023.
  25. News: Dillet. Romain. January 24, 2022. Gorillas to acquire Frichti in latest instant grocery consolidation . TechCrunch .
  26. News: Cameron . Isabel . 11 March 2022 . Gorillas finalises Frichti acquisition . Charged .
  27. News: Neerman . Pauline . 10 March 2022 . Gorillas acquires Frichti, joins Just Eat collaboration . RetailDetail .