The pandemic served as an opportunity for new industries and business models to rise and serve unmet needs. However, everything happening in the tech industry and the global supply chain is telling us one thing: nothing is certain.
Gorilla Forced to Exit Belgium After Lockdowns Ease
According to reports, Gorilla has finally given up the battle in Belgium as it is forced to close its warehouses in Brussels and Antwerp. The news came after a slew of lay-offs that did not effectively resolve their financial dilemma.
Back in October 2021, Gorilla was already worth a staggering $1 billion. With warehouses located near delivery points, Gorillas was definitely also able to provide jobs. In Belgium, however, the company chose to leave only around a year after they had arrived due to the declining value of the industry. Belgian news has reported that over 200 people had lost their jobs after closing all six warehouses in the country.
In the season of lockdowns, quick-commerce apps' near-instant services quickly served the solution for most people's needs and challenged what seemed to be an already viable option offered by e-commerce services.
Investors were quick to make their moves in favor of innovative startups. Yet, in what some deem as expected, the current global economic crisis has heightened the reluctance of many investors to push through. The outcome of German q-commerce company Gorillas demonstrates the fate of many rapid-delivery services, particularly in Europe.
Experts Talk About What to Expect After Rapid Delivery Boom Comes to a Close
Analysts claim that Gorillas' exit may serve as a wake-up call to startups that don't operate the way businesses normally should. At the expense of profitability, the very goal of a business, the company has promised radical convenience. Even so, their ratings were recorded as poor.
Another identified problem was low demand. Orders slowed down once the lockdowns were lifted, leaving rapid-delivery apps' selling proposition futile. Because of the many inconsistencies brought about by many economic issues, investors are not taking the risk of waiting for these companies to profit. Now, companies are forced to adjust to prioritize profitability to stay alive and running.
Gorillas are bound to leave Denmark and Spain where both branches search for buyers or investors. These decisions were made in line with the strategic change in their business framework to focus on profitability finally. The company's Danish branch failed to meet sales targets and had employee-related concerns such as days with no delivery rider showing up to work. While in Spain, about 300 of their employees are expected to be laid off.
Getir, Gorillas' known competitor, is already showing signs that they might suffer from the same fate. Getir claims that they are expecting to lay off over 800 employees globally. Jiffy, another rapid delivery service, has stopped its delivery services entirely to focus on technology and software within the rapid grocery industry. There is no question about the toll quick commerce taking.
