Losses Mount for Startups Racing to Deliver Groceries Fast and Cheap

Wall Street Journal (WSJ) (01/30/2022)
  • The convenience offered by NYC startups Gorillas, Jokr and Getir (10-20 minute rapid-delivery groceries) has generated millions in losses.
  • To entice customers, these VC-backed startups have spent billions on marketing, offering discounts without minimum orders; some lose $20 per delivery.
  • Instead of relying on less costly independent contractors (eg Uber), rapid-delivery services employ full-time on call couriers.
  • Since 2020, investors have poured $5.5B into six (6) NYC rapid-delivery startups.
  • Similar early 2000s dot-com bubble startups (eg Kozmo, raised $200M) eventually went bankrupt (never profitable).