Grocery delivery services have proven to be a necessity for many people throughout the COVID-19 pandemic. The demand for delivery products has increased greatly as people look to avoid places with high foot traffic. It was reported on Thursday that Gorillas, a speedy grocery delivery startup and app company, raised $290 million in funding.
What Is Gorillas?
Gorillas is a Berlin-based grocery delivery and app startup company that delivers everyday items in as little as 10 minutes. Founded in 2020, the business has since expanded to 12 other cities across Europe, including Amsterdam, London, and Munich. The delivery company even owns 40 micro fulfillment centers around Germany, the United Kingdom (UK), and the Netherlands.
Kağan Sümer, co-founder and CEO of the delivery business, said, “We believe that the weekly grocery run is outdated because people’s lives are increasingly spontaneous and shopping habits change accordingly...Additionally, this pandemic has accelerated the need for grocery deliveries. If we can order clothes and trinkets and have them delivered to our door, the same should be said for our essential needs. Gorillas helps customers get what they need when they need it, whether this is their weekly grocery list or the tomatoes they forgot for tonight’s pasta recipe.”
Crunchbase data indicates the startup app company has raised $335.4 million over several financing rounds with investments from Coatue, DST Global, Tencent Holdings, and Atlantic Food labs. Startup Savant reported the delivery business raised $44 million in a Series A funding round back in December.
New Funding, New Status, New Plan
TechCrunch reported Thursday that the startup app company smashed the previous funding record when it raised $290 million in a Series B funding round, valuing the business at more than $1 billion and giving Gorillas unicorn status — one of the fastest European startup companies to achieve this.
With its new unicorn status, Gorillas will be providing the rider crew and warehouse staff $1 million bonuses, although the startup app company did not detail how those disbursements will break down whether through cash, stock, or a combination of both. Riders for the business are allegedly organizing a union with the Free Workers’ Union, or FAU, in Germany.
Backed by the Financial Times, Sifted reported that the delivery business will be using its new funding to expand to 10 more countries and 50 cities, including New York and Paris. In addition, the delivery app company will invest capital in business technology.
About the Industry and Gorillas Competitors
Gorillas is not the only successful item delivery startup app company in this industry. In a report published with Research and Markets, Technavio projects the grocery delivery market to grow $631.84 billion between 2020 and 2024 — a CAGR of 29%.
Elsewhere around the world, food and grocery delivery startup companies are finding success as well. London has several of these companies, including Deliveroo, Jiffy, Dija, Weezy, and Zapp. France has Cajoo, and the United States (US) has businesses like DoorDash, goPuff, Shipt, Instacart, Postmates, and more.
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.