Rapid grocery delivery start-ups Getir, Gorillas slash jobs - 0 views
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Fears of an impending recession are forcing rapid grocery delivery companies to slam the brakes on growth.This week, two of the largest instant grocery apps, Getir and Gorillas, announced decisions to lay off hundreds of employees. Another firm, Zapp, said it is proposing redundancies in its U.K. team.Getir told staff Wednesday that it plans to reduce its global headcount by 14%. The Turkish company employs more than 6,000 people worldwide, according to LinkedIn.
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Gorillas on Tuesday said it was making the “extremely hard decision” to let go about 300 of its employees, citing the need to reach profitability in the long run.The Berlin-based company is also evaluating a possible exit from Italy, Spain, Denmark and Belgium, among other “strategic options,” as it shifts focus to more profitable markets like the U.S., U.K. and Germany.
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Getir and Gorillas have raised $1.8 billion and $1.3 billion to date, respectively. Getir scored a $12 billion valuation in March, while Gorillas was last valued at $3 billion. Both firms have burned through significant amounts of cash to expand in the U.S.London-based grocery start-up Zapp on Wednesday confirmed reports that it is considering making layoffs of up to 10% of staff. A final decision hasn’t yet been made as a consultation is underway with the firm’s U.K. employees.
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