The ultra-fast bicycle delivery service Gorillas is shifting its focus from growth to profitability and is now concentrating on five core markets. The startup is cutting 300 jobs and considering an exit from Belgium.
“View all strategic options”
The era of rampant growth is over for Gorillas. In search of profitability, The Flash delivery company wants to increase efficiency and therefore focuses on five core markets: Germany, France, the Netherlands, the United Kingdom and the United States. Together, these countries now account for 90% of the company’s revenue.
In these countries, the delivery service wants to further tinker with the range, pricing and logistics in order to offer customers the best possible service and position the Gorillas brand as the market leader. “In Italy, Spain, Denmark and Belgium, which are in themselves very attractive markets, we are exploring all possible strategic options for the Gorillas brand,” The Flash Delivery Company reports in a press release. The service may therefore disappear from Belgium less than a year after the start.
“Extremely difficult decision”
That strategic decision will not be without consequences for employment: 300 people will have to leave the headquarters in the coming weeks. Discussions also follow with employees in the local departments. The company itself speaks of an “extremely difficult decision” that should help Gorillas become a stronger and more profitable business.
However, the announcement does not come as a surprise: the fledgling sector of ‘quick commerce’ is particularly competitive, with various startups working in the shopper’s favor. However, the provision of services is associated with high costs, the scale remains limited for the time being and the sector is finding it more difficult to obtain growth capital in the current difficult circumstances. In addition, cities are taking measures against a proliferation of ‘dark stores’. There was a recent consolidation movement, with the acquisition of Weezy by Getir, of Flink by Cajoo and of Frichti by Gorillas.