What is Gorillas, Europe's fastest ever startup to be valued at $1b and now expanding rapidly across London?
Photograph: Gorillas.io
Gorillas, the Berlin-based grocery-delivery startup that claims it serves customers within 10-minutes, could be the next big thing in the e-grocery market. Having reportedly raised $290 million in Series B funding in March 2021, Gorillas are already looking to raise another $1 billion, which could put the company at a $5-6 billion valuation.
What is Gorillas?
Founded in May 2020, Gorillas is the fastest ever European startup to achieve unicorn status (a valuation of $1 billion or more) having reached this landmark a mere 9-months after launching. While they were originally founded in Berlin, the company now operates in more than 30 major European cities, with their most recent launch in London this year.
Unlike Deliveroo or Uber Eats, Gorillas operates a vertical ‘dark store’ model – produce is held in ‘micro-fulfilment centers’ or warehouses where drivers collect the food and then deliver it to hyper-local markets. You can get your fruit, veg, meat, milk etc. - pretty much anything you can get in a supermarket – but in rapid time, and from your sofa. Customers can choose from a selection of 2000 items, all at retail prices, while deliveries are charged at a fixed rate of around £1.80 (or $2).
This type of delivery could change the world
This new, spontaneous delivery model offers an alternative to the traditional weekly shop, which at the moment accounts for ⅓ of the market, according to Gorillas CEO & co-founder, Kagan Sümer. “The current model is broken,” says Sümer. “⅓ of the market is super-served – you buy things when you don’t need them and ⅔ of the market is underserved – you need things and you cannot get them”.
More than just meeting immediate consumer needs, a move away from bulk purchasing will account for huge reductions in food waste, “You bulk buy things, why? Because you know you will be underserved next week, you need things and you store them and then half of those things go to waste” says Sümer.
What makes them different?
Along with a commitment to reducing food waste, Gorillas boast a strong commitment to their driver and employee welfare. Unlike driver’s of Deliveroo, Gorillas couriers are paid a salary and afforded more of the protections of a company employee.
Alongside their $1 billion fundraise, Gorillas decided to share a $1 million bonus across their employee base. However, despite a fair amount of public praise, Gorillas employees in Berlin are looking to unionise later this month, according to the Gorillas’ Workers Collective Twitter account – they are seeking an increase in wages as well as more investment in rider equipment.
They’re not alone
Despite this, Gorillas don’t look like they are slowing down any time soon. However, they aren’t alone. Competition within the grocery-delivery sector is vast – competitors Weezy, Getir, Flink, Zapp, Cajoo & Dija are all looking for a slice of the VC pie.
Getir alone announced a $500-600 million round in January this year, which took the Turkey-based startup’s valuation to a tidy sum of $7 billion. Other US competitors such as GoPuff raised over $1.15 billion in March 2021, putting them at a valuation of $9 billion. While unconfirmed, the Philadelphia-based company reportedly plans to expand into European and UK markets soon.
Who will last in this increasingly tight race to the top of the on-demand delivery totem pole?
If you’d like to hear more powerful insights from Kagan Sumer, co-founder of Gorillas, then have a listen to our podcast episode with the man himself.
