Venture Capital: Rapid Delivery Service Gorillas Lays Off 320 Employees, Mulls Withdrawal From A Few EU Countries

May 24, 2022 | News, Venture Capital
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The reorganization comes as the poster child of on-demand grocery deliveries refocuses on profits instead of growth.

Gorillas, the delivery startup that made waves with its nearly $1 billion Series C funding round in October, has redrawn its growth plans with an eye, instead, on long term profitability. As a result, it is letting go of about 300 employees worldwide and looking at “strategic options” for its operations in Italy, Spain, Denmark and Belgium. (Gorillas)

Gorillas to focus on five “key” markets

“As of now, 90% of our revenue comes from five key markets which have entered a clear path to profitability: Germany, France, UK, Netherlands and the US,” said the Gorillas announcement. “For this reason, we have decided to sharpen our focus and continue to grow these five markets, where we see huge potential in the near future.”

“In Italy, Spain, Denmark and Belgium, very attractive markets in their own rights, we are looking at all possible strategic options for the Gorillas brand.”

The company’s priorities, as a result of the new direction, are customers, the brand, pricing, products offered, ordering experience and logistics.

Manning needs reviewed, adjusted

Gorillas had a relook at their staffing needs in the light of the new focus on fewer territories and thrust towards profitability.

As a result, the delivery startup has decided to lay off about 300 workers from its office infrastructure across the globe.

In a parallel announcement explaining the job cuts, co-Founder and CEO Kagan Sumer laid out his insight on the unfolding global situation, saying the world economy is changing as a result of “a unique wealth and money transfer in the capital markets.”

This transfer was triggered by the markets turning upside-down in March, with investors taking a stick to low or negative margin tech companies.

“The result of this new reality is that wealth and money are being transferred to low risk profitable businesses,” wrote Sumer. “This will kick-off a natural selection process in our q-commerce industry.”

Sumer sees his company among the players left standing after these “challenging times.”

“In January 2020 there were 30 players in our industry.

In January 2021 only 15 remained.

In January 2022 you can count 4.”

In the “finals” (a year from now), Gorillas will be one of the 1-2 players remaining, according to Sumer’s vision.

Related Story: Delivery Hero Takes $235M Chunk Of Gorillas’ $1B Funding Round

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