The ascendence of rapid grocery delivery is slowing
In 2021 and early 2022, venture-capital investors poured billions of dollars into several app-based grocery retailers that promise delivery in as little as 15 minutes. But by mid-2022, the quick-delivery grocery retail model wore off some of its shine as the investment climate changed.
The ascendence of rapid grocery delivery is slowing
In 2021 and early 2022, venture-capital investors poured billions of dollars into several app-based grocery retailers that promise delivery in as little as 15 minutes. But by mid-2022, the quick-delivery grocery retail model wore off some of its shine as the investment climate changed.
Smaller players, such as New York-based startup Fridge No More and Buyk, the New York-based U.S. subsidiary of Russia-based Samokat, have gone out of business. In Buyk’s case, the service shut down due to sanctions after Russia invaded Ukraine. Fridge No More permanently closed after talks with DoorDash Inc. to buy some of its business fell through. The two retailers closed during the same week in March 2022.
Other fast-delivery grocery operators are cutting costs and exploring strategic alternatives. According to news reports, Gopuff, one of the best-funded and fastest-growing quick-delivery grocery retailers, laid off about 3% of its global workforce in March 2022 to cut costs.
Smaller players, such as New York-based startup Fridge No More and Buyk, the New York-based U.S. subsidiary of Russia-based Samokat, have gone out of business. In Buyk’s case, the service shut down due to sanctions after Russia invaded Ukraine. Fridge No More permanently closed after talks with DoorDash Inc. to buy some of its business fell through. The two retailers closed during the same week in March 2022.
Other fast-delivery grocery operators are cutting costs and exploring strategic alternatives. According to news reports, Gopuff, one of the best-funded and fastest-growing quick-delivery grocery retailers, laid off about 3% of its global workforce in March 2022 to cut costs.
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