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Food Doesn't Leave Alone: ​​The Challenges of Fast Delivery Startups

International fast delivery services are going negative, laying off thousands of employees and correctly and streamlinedly report a change in strategy.

In the wake of the pandemic, almost every startup that promised food delivery in 15 minutes raised money from investors. For example, just six successful New York companies received about $8 billion from venture capital funds during 2020-2021. Back in October, the German unicorn Gorillas announced that a billion had been credited to its accounts. And in early July, he left the Italian market, leaving 540 people without work. In parallel, a business in Belgium was closed (minus another 200 people). Denmark and Spain are getting ready.

Another delivery service, Getir, plans to cut its staff by 800 people, and Jiffy has switched to software altogether.

The reasons? - It turned out that the fast business of fast delivery does not imply a quick profit. And here, the removal of pandemic restrictions allowed potential customers to go to supermarkets the old fashioned way, on foot. And now you can’t lure the consumer with one wellcome banana (Gorillas feature). Therefore, companies are changing their strategy, abandoning expensive delivery costs, optimizing stocks in warehouses and establishing partnerships with large retail chains (they at least have large reliable refrigerators).

Food Doesn't Leave Alone: ​​The Challenges of Fast Delivery Startups