Gorillas seeks support (and profit) from large retailers

More collaborations like the one between Gorillas and Jumbo are to come. Gorillas’ ultra fast delivery service needs these partnerships to become profitable.

Focus on profitability

A quarter of Gorillas’ more than 230 ‘dark stores’ are currently profitable, reports Charged Retail. However, the Berlin-based company is confident that it will be operationally profitable within three months and profitable at group level within twelve months. The quick commerce company announced this at the Consumer Goods Forum Global Summit in Dublin.

By partnering with retailers such as Tesco and Alibaba, Gorillas can take advantage of their buying power and higher margins, says co-founder Ugur Samut, while they in turn can use the delivery company’s technology and logistics. These partnerships should make the business more financially sustainable.

Changing course

Gorillas has had to make some “very tough decisions” recently, Samut admitted. Last month, the company cut many jobs and reviewed its operations in Belgium, Italy, Spain and Denmark to cut costs.

After the Covid pandemic, demand for online groceries has calmed down, while this year the sharp rise in food prices is affecting consumer confidence. “We realised that we need to adapt, course correct and we have to do it fast, so there were really tough decisions,” says Samut. “Now the whole focus is actually going towards profitability.”