Gorillas closes in Spain, Denmark and Belgium. The company has confirmed, in a statement on the web, that the claims from now on of the super fast food delivery service will be limited to those markets in which they are more profitable. And it does so just a year after arriving in Spain with great publicity.
The food delivery service confirms that this is the result of your new approach to long-term profitability and not so much in super growth, which has undoubtedly been its strategy in Spain, offering super fast shipments at low prices and with an unprecedented strategy of coupons and discounts.
In this sense, the company affirms that currently 90% of its income comes from the markets in which it is strongest: Germany, France, the United Kingdom, the Netherlands and the United States, and that for this reason, the idea is to reduce number of countries in which they operate and focus on being sustainable in the long term in those with the highest penetration:
After closing our latest funding round in October 2021, we shifted our focus from hyper-growth to a clear path to profitability, allowing us to significantly increase the efficiency of our business.
Gorillas is the first to leave by boat, but it will not be the only one
The departure of Gorillas from Spain leaves the track clear for the rest of the companies that operate in the same market segment: super fast last mile food delivery. Getir and Gopuff, two of the best known, have also recently entered Spain with a business model similar to that of Gorillas.
Proximity warehouses, delivery in the center in 15 minutes, a reduced producer catalog but very suitable for fast delivery, and above all, a very aggressive strategy of attraction, retention and customer loyalty based on discounts and promotionshave led these companies and their delivery men to become one more element of the urban landscape.
However, the doubts of many of the greats in the delivery sector, about when the party for the newcomers would end, it seems that they already have answers. Gorillas is the first to leave Spain, but without a doubt, Given rising food costsand the reduction in consumption will not be the last.
The most visible consequence is that users will no longer be able to order from home, the most serious is that, as confirmed by Gorillas, they will significantly adjust the size of their global workforce. That is to say, they will fire a large part of their staff. Confirmed almost 300 members of the global office will leave Gorillas, and logically, all those from the countries in which they will stop operating, including Spain, will also leave.