Image credit: Gorillas
Gorillas, a Berlin-based on-demand grocery delivery startup, announced on Friday, June 24, the exit of its business from Belgium.
Gorillas is closing its warehouses in Belgium and handing off some of its businesses to Belgium organic and seasonal products delivery firm, Efarmz. The price of the deal will not be disclosed by the parties.
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The German company, which expanded rapidly during the COVID-19 pandemic, has struggled to raise capital and is now reviewing operations in Belgium, Denmark, Italy, and Spain.
As a part of the agreement, Efarmz acquired Gorillas’ local business intelligence on quick commerce, and will take over some of its office crew.
According to Belgian newspaper De Standaard, the 240 employees who lost their jobs after the exit are to receive almost double the legal redundancy compensation.
“This decision has important implications for our crew in Belgium. All of them have already been informed of our plans for this market. We have ended the consultation period and have negotiated a social plan with trade union representatives. We are extremely proud and grateful for what our people in Belgium have achieved and are already in discussions with other companies interested in hiring them,” writes the company.
The announcement comes one month after slashing 300 jobs to cut costs and extend the company’s runway.
The company is also looking to shut shop in other markets such as Spain and Denmark.
The Berlin unicorn plans to focus on reaching profitability in its five key markets – Germany, France, the UK, the Netherlands, and the US – where the startup sees huge potential in the near future. Over 90 per cent of the company’s revenue comes from these markets, says the startup.
In October 2021, the company raised close to $1B (approx €858.4M) in its Series C round of funding at a $2.1B valuation led by Berlin-based Delivery Hero.
Currently, the company is working with JPMorgan on its fundraising plans and other strategic options, including the sale of some or all of its business, reports Reuter.
Earlier this year, the German company inked a strategic partnership with Noord-Brabant-based Jumbo Supermarkets in the Netherlands and the Flanders region in Belgium.
Gorillas: What you need to know
Founded by Kağan Sümer in 2020, Gorillas is a grocery delivery provider that claims to deliver goods to its customers’ doorstep in just 10 minutes.
The platform has access to more than 2000 essential items at retail prices for a delivery fee of just over €1.80. The company provides all riders with fixed employment contracts, health insurance, employer-financed accident insurance, and paid vacation.
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