A new crop of start-ups in Europe are offering to deliver people’s groceries in just 10 minutes, fueled by venture capitalists and an acceleration of online commerce during the coronavirus pandemic.
Turkey’s Getir, Germany’s Gorillas and Britain’s Dija are just a few of the apps promising users 10-minute grocery deliveries. It’s an increasingly crowded market with many new entrants attempting to gain a strong foothold in local markets.
“The acceleration in the grocery space has been huge and went together with what has been happening in the pandemic,” Alberto Menolascina, co-founder and CEO of Dija, told CNBC in an interview.
Dija, which operates in London, Paris and Madrid, raised $20 million in seed funding in December. Menolascina, a former Deliveroo employee, founded the firm with colleague Yusuf Saban. Both Getir and Gorillas entered the U.K. capital earlier this year.
These firms operate what’s known as “dark stores,” fulfilment centers designed to carry out online orders rather than serve customers in person. Dija and Gorillas hire their couriers rather than relying on contractors like Deliveroo and other players in the gig economy.
Venture capital investors are gushing over speedy delivery start-ups. Venture-backed grocery delivery firms have raised around $1.56 billion in Europe so far this year, according to PitchBook, easily surpassing the $687 million that flowed into the sector in 2020.
And the deals are only getting more competitive. According to Bloomberg, both Getir and Gorillas are seeking investment rounds of at least $500 million, which would value them at $7 billion and $6 billion, respectively.