Fast delivery service Gorillas is looking for partnerships


gorillas

To ensure that the company does not run out of money, 300 administrative employees were laid off in May.


(Photo: Reuters)

Dublin, Amsterdam, Berlin The German fast food delivery service gorillas relies on partnerships in its struggle for financial progress. The aim is to work with large supermarket chains, said co-founder and chairman Ugur Samut at a conference in Dublin on Wednesday.

The “Tescos and Alibabas of this world” would gorillas offer more purchasing power and higher margins. So far, the Berlin startup, which is writing high losses, has only been able to participate in test runs tesco secure and a delivery alliance with the organic supermarket Alnatura. The Berlin competitor Flink, however, works with rewe and Carrefour together.

Gorillas needs to cut costs to meet its own goals. “We believe that we will be profitable operationally in three months and as a group in 12 months,” Samut said. Gorillas is suffering from high inflation, economic slowdown and Technology stocks plummet and therefore had to say goodbye to the expansion course that had started during the Corona crisis. So that the company doesn’t run out of money, 300 employees in administration were laid off in May and the shops in Italy, Spain, Denmark and Belgium were put in the shop window.

Getir from Turkey and the British provider Zapp are also cutting jobs. “We realized we have to adapt, correct course and we have to do it quickly, so there have been some tough decisions and now the whole focus is on profitability,” Samut said. Atlantic Food Labs gorillas investor Christophe Maire told Reuters the strategic realignment is the right move to build a long-lasting business.

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Fast food delivery services such as Gorillas, the DoorDash holding Flink and Getir from Turkey have sprung up like mushrooms in the Corona crisis. Financial investors willingly made capital available to the loss-making start-ups. In view of the turnaround in interest rates, money is no longer so loose. Gorillas was last able to collect around 860 million euros in October. At that time, the global food delivery service came along Delivery Hero as an investor with a capital injection of 200 million euros on board.

According to an insider, Gorillas has now hired investment bank JPMorgan to negotiate with investors about a fresh cash injection and other strategic options, including a sale. Gorillas are a good catch for food delivery services that are open to consolidation, said the person familiar with the matter.

More: Gorillas’ search for new financiers falters – sale as a way out?



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