Gorillas and Getir’s Operational Struggles Raise Doubts About Express Delivery Model

Gorillas and Getir's Operational Struggles Raise Doubts About Express Delivery Model

The once-promising express delivery service companies, Gorillas and Getir, are facing considerable challenges in their operations, leading to supply gaps and potential financial woes. Customers are experiencing shortages of various products through the Gorillas app, a sign of the startup’s struggles, while competitor Flink gains an advantage in this situation.

Gorillas, a Bengaluru-based startup that previously captivated the industry with its promise of ultra-fast grocery deliveries, is currently grappling with a default situation with its suppliers. This has resulted in significant product shortages, with items like milk, bread, and cold cuts missing from their offerings. This faltering performance raises concerns about the viability of their business model and is causing skepticism among venture capitalists who had initially shown interest in the company.

Insiders suggest that Gorillas has been struggling to meet its financial obligations to suppliers for months, leading to the temporary suspension of deliveries by its business partners. While the company acknowledges the existing gaps, a spokesperson assures that efforts are underway to address the issue and restore a complete range of products. However, there is no confirmation on whether payment default has occurred.

Gorillas’ situation became more complex after its acquisition by Turkish rival Getir in April. Although expectations were high for improved services and a broader product range, it appears that challenges persist for the merged entity.

The express delivery industry, which was once flooded with capital investment, is now facing caution from venture capitalists due to rising interest rates and economic uncertainties. The sector’s future is at stake as companies like Getir, which burns through significant amounts of cash each month, grapple with securing funding amidst a challenging economic environment.

Getir’s financial predicament is evident as it reportedly sought fresh investor capital to the tune of $500 million, yet lead investor Mubadala is only inclined to provide a fraction of that amount. The situation is further complicated by the need to achieve specific savings goals before funds are disbursed.

Both Gorillas and Getir are witnessing gaps in their product ranges. Getir is also dealing with strained relationships with delivery partners and integration issues arising from Gorillas’ merger. In contrast, Flink, backed by supermarket operator Rewe, is capitalizing on its solid supply chain relationships and maintaining a steady range of products.

Experts predict consolidation in the delivery services sector, with Flink emerging as a potential front-runner due to its strategic importance for investor and wholesaler Rewe. As the competition intensifies and financial pressures mount, the industry is at a crossroads, and the coming months could significantly shape the future of these express delivery startups.

Meituan Plans Share Buyback Valued at Up to $1.0 Billion Author: Borys Gitelman
Deliveroo Sees Expansion Into Non-Food Driving Growth Author: Borys Gitelman
Meituan’s Profit Tripled on Rising Chinese Consumption Author: Borys Gitelman
Instacart Adds Peacock As First-Ever Streaming Partner Author: Borys Gitelman
Delivery Hero-owned Baemin to exit Vietnam in December Author: Borys Gitelman
Uber Shuts Down Instant Delivery In NYC Author: Borys Gitelman
Swiggy gears up for $1 billion IPO, SoftBank may sell stake Author: Borys Gitelman
The EU Wants to Fix Gig Work, but Uber Has Its Own Ideas Author: Borys Gitelman
Just Eat Growth Momentum Stalls In Ireland Author: Borys Gitelman
Amazon to sell Hyundai vehicles online starting in 2024 Author: Borys Gitelman
Britain’s Ocado secures first deal beyond grocery retail Author: Borys Gitelman