Slew Of Job Cuts As Grocery Delivery Players Rein In Costs
Grocery delivery start-ups were rocked this week with major players announcing rounds of layoffs.
On Tuesday, Gorillas, the $3 billion Berlin-based outfit that has been scooping up wads of VC cash the last two years, announced that it was laying off 300 employees and exiting three markets.
“Two months ago in March, the markets turned upside down, and since then the situation has continued to worsen,” chief executive Kağan Sümer said in a blog post.
Most of the jobs cuts will be at Gorilla’s Berlin headquarters.
Gorillas is pulling out of Spain, Italy, Denmark and Belgium and will focus its time and resources now on its home market of Germany, the UK, France and its ongoing expansion into the US.
A day later, Getir, one of its chief rivals, made a similar move. The $12 billion Turkish company has been rapidly expanding in Europe but TechCrunch reported on Wednesday that the company is cutting up to 14% of its staff.
In a memo sent to employees, Getir management cited “rising inflation and the deteriorating macroeconomic outlook around the world” as the driver behind its decision.
“With a heavy heart, we today shared with our team the saddening and difficult decision to reduce the size of our global organization. At a global headquarter base, our reduction will be about 14%. Numbers will vary by country.”
That same day, Sifted reported that British start-up Zapp, another major player in the recent trend of rapid grocery delivery, was looking to slash its workforce by 10%.
In a similar tone, inflation and supply chain issues were flagged as challenges for the company and its business. The company had already been downsizing, shutting operations in some cities in the UK.
It is the latest chapter of upheaval for this spate of grocery delivery firms, which operate on tight margins. Consolidation has picked up with several acquisitions of late while in the US player Jokr exited the European market entirely.