Gorillas has started fast grocery delivery pulling out of several regions in Europe to target its key markets, including the UK, as the company shifts its focus from “hyper-growth to a clear path to profitability”.
The grocery delivery company based in Berlin said it will reduce some 300 roles within its global workforce in an effort to extend its escape in difficult economic times for the technology industry.
Most of the roles being eliminated are based at the company’s German headquarters in Berlin.
In addition to the staff cuts, Gorillas has announced plans to end operations in Italy, Spain, Denmark and Belgium, in order to better focus on what it describes as its main UK markets. Netherlands, USA, France and Germany.
The company has stated that 90% of its revenue comes from these five markets, so it will focus on trying to achieve profitability for those before pursuing services elsewhere.
Founded in 2020, Gorillas is one of a handful of fast delivery businesses that emerged during the pandemic to deliver courier grocery orders to consumers in 20 minutes or less.
Fast growing gorillas
The growth of Gorillas is as rapid as its delivery service, receiving $ 1.3bn in funding, including overflows. $ 1bn Series C round in September last year. The last publicly shared valuation was $ 3.1bn, just over a year after its first seed round.
However, while start – ups have spent large sums of money in the fast delivery market – especially during the industry’s pandemic boom – profitability remains a global challenge, as Gorillas are concerned. they may not be able to meet their enormous expectations continue on.
Despite rising astronomical financial figures in a short period of time, sources close to the company have claimed that suppliers are facing significant debt and are operating at a monthly burnout rate of up to $ 75m, as reported. TechCrunch.
Gorillas are just one of many tech companies that feel the heat of hard economic times. Buy now pay later The firm Klarna has announced it will cut 10% of its staff, and London-based Hopin online events platform lost about 12% of its staff back in February.
Gorillas to target ‘key markets’, including the UK, after shooting 300 staff
Source link Gorillas to target ‘key markets’, including the UK, after shooting 300 staff