Instant groceries The delivery sector has seen its share of ups and downs over the past few years. Startups that sought to deliver groceries and other small items to customers in 30 minutes or less saw the same rush for capital, and resulting inflated valuations, in 2021 as did many other categories. And now, they collapse to the ground next to them.
But unlike other categories, where economic conditions have had more to do with demand fluctuations and broader sector declines, instant grocery delivery companies appear to have a bigger problem: their business model.
Last year was difficult for the sector. US-focused Fridge No More and Buyk closed permanently in 2022, and other startups in the space are struggling to raise money. Gorillas was sold to Getir at the end of last year for €1.1 billion, less than the $1.3 billion it had raised until then. Getir is also rumored to be raising money at a valuation lower than the last cut in December. According to the Financial Times.
But not all express grocery delivery companies are suffering. In fact, those that continue to grow in 2023 have something in common: they are not focused on Western Europe or the United States.