Gopuff, DoorDash, Gorillas, Jokr, Getir, and Buyk may sound like Pokemon, but Pokemon don’t lose money delivering groceries.
These companies promise near-instant delivery, and they’ve raised $5.5B+ in VC money since 2020.
But the economics are sketchy, at best. Last year, Fridge No More was losing $3+ per order, excluding the $70 it was spending to acquire each customer.
To deliver quickly, you need hyperlocal warehouses, instant labor, and, ideally, high-value non-perishable products. “If it’s a toothbrush and banana, that’s not going to work,” one industry insider told WSJ.
The idea is that with enough scale — and the right items — some companies could turn profitable. But it’s likely many will turn out like Kozmo.com, which shut its doors in 2001 after raising $200m+ a year earlier to deliver goods in one hour.
Get the 5-minute roundup you’ll actually read in your inbox
Business and tech news in 5 minutes or less
