10 minutes or much less: The Gorillas grocery supply service launches in some components of Brooklyn
BROOKLYN – A German e-commerce startup aims to disrupt the New York grocery store with deliveries to customers’ homes in 10 minutes or less.
Gorillas, which were founded in Berlin last year and are now available in more than 25 European cities, will begin shipping in a handful of Brooklyn neighborhoods this month. Brooklyn will be the first gorillas location in the US and is slated to expand into Manhattan next month. The company aims to move to other major US cities in the future.
Gorillas has small warehouses in its delivery area and stores them with a limited selection of items – around 2,000 groceries and essentials. Customers charge a $ 1.80 delivery fee for orders. There are no minimum order sizes for customers.
The company is betting that it is the right time to enter the US.
Online grocery shopping, which fueled the pandemic, rose 81% from 2019 to $ 55.5 billion in 2020, according to Coresight Research, a retail consulting and research firm.
“Now that this industry has seen the long overdue drive into e-commerce, it will stay here,” said Kaill Sümer, Gorillas CEO and co-founder, in an announcement on Monday.
Gorillas will face stiff competition in New York, where shoppers can quickly pick up groceries and staples at their local bodegas.
Other ecommerce startups like Fridge No More and 1520 offer delivery times similar to Gorillas in New York City, while Instacart, FreshDirect, and Amazon offer same day delivery of a much larger selection of items than Gorillas can offer from its mini-warehouse .
“It’s not a game changer,” said Phil Lempert, food analyst and founder of Supermarketguru.com, of gorillas coming to New York City.
He sees consumers using gorillas and other on-demand food delivery apps like Fridge No More and 1520 for cooking emergencies – someone who makes a cake and forgets they didn’t or didn’t have any frosting when they cooked a pizza Bell pepper flakes have more – and not a real alternative to longer trips to the grocery store or a complete online order.
New York City is one of the few U.S. markets that can handle gorillas and similar services, Lempert said due to its dense neighborhoods. And he’s not sure if these apps can ever be profitable unless they put high shipping costs on buyers or require brands to store their items.
There is also the labor cost. Unlike most food and grocery delivery apps, Gorillas directly employs all cyclists who deliver customer orders. In New York City, gorillas will offer them a minimum wage of $ 15, health and social benefits, and will provide them with bicycles and equipment. According to reports, some gorilla drivers in Europe are trying to form a union.
Gorillas raised $ 290 million during its most recent funding round in March. The company reportedly intends to raise more than $ 6 billion in additional funding. Gorillas declined to comment on his assessment.
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