Gorillas restructures, may quit four markets

Flash delivery service Gorillas is shifting its focus from growth to profitability, cutting 300 jobs. The company will concentrate its efforts on five core markets and is therefore considering an exit from four other markets. 

“Looking at all strategic options”

The era of unbridled growth is over for Gorillas. In search of profitability, the quick commerce company wants to increase efficiency and will focus its efforts on the American, British, Dutch, French and German markets. Together, these countries account for 90 % of the company’s revenue today.

In these five markets, the delivery service wants to further improve its assortment, pricing, ordering experience and logistics in a bid to position the Gorillas brand as a market leader. “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 quick commerce player reports in a press release.

“Extremely difficult decision”

This strategic decision is not without consequences for employment: 300 people will have to leave the head office in the coming weeks. Talks will also be held with employees in the local departments. The company itself speaks of an “extremely difficult decision” that should help Gorillas become a stronger and more profitable business.

However, the announcement does not come as a complete surprise: the fledgling sector of quick commerce is extremely competitive, with several start-ups vying for the shopper’s favour. But the service comes at a high cost, scale remains limited for the time being and the sector is finding it harder to raise growth capital in the current difficult circumstances. Moreover, cities are taking measures against a proliferation of ‘dark stores’. There has already been a recent consolidation movement, with the takeover of Weezy by Getir, of Flink by Cajoo and of Frichti by Gorillas.