Gorillas declined to provide a reason for hitting the pause button on its U.S. expansion, but recent reports have noted that the German startup has struggled to raise funds, contended with worker protests in its home country and been advised to slow its expansion.
The news, which was first reported by Business Insider Germany, also presents a twist in the narrative for ultrafast delivery, which up until now has centered on breakneck growth. Startups fueled by pandemic demand have expanded throughout Europe and Latin America, burning through investor cash as they lay claim to a new market opportunity for rapid, impulse-driven grocery fulfillment.
Although Gorillas is only committing to pausing its U.S. expansion for a few months, that constitutes a lengthy period of time in the budding industry. Several firms have launched in New York City this year, and at least one has expanded to a new market. Zachary Dennett, U.S. co-founder at Jokr, said the company aims to open in several new U.S. cities, including Boston, by the end of 2021, while Getir, a Turkey-based company that pioneered the quick-commerce model, plans to be in New York, Boston and Chicago by the end of this year, CEO Nazim Salur said in a recent podcast interview.Grocery Dive