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Amazon, Gopuff Both Seek To Acquire Grocery Startup Flink

 |  June 9, 2021

Amazon and US delivery company Gopuff, which is backed by SoftBank, are both looking at buying up Germany-based Flink, sources told Bloomberg. Flink has already spurned a bid from Gopuff.

The status of Amazon’s and Gopuff competing buyout bids is unclear, but delivery apps are increasingly looking at buying up potential rivals in Europe.

Flink, a grocery-delivery startup, raised US$240 million earlier this month. Backers included Prosus, investment company Bond and Mubadala Capital. The Berlin-based Flink, which launched just six months ago, has partnered with the Rewe Group supermarket chain.

“The order growth we have seen over the past weeks has been explosive,” said Co-founder Oliver Merkel. Flink stated it already has more than 50 local hubs and is opening a new hub every two days. The delivery company also noted that it reaches more than three million customers every day. Flink — which means “quick” in German — delivers groceries in Germany, France, and the Netherlands.

Meanwhile, Gopuff has big expansion ambitions. Last month, the company announced it was acquiring the on-demand delivery platform Fancy in the UK. The value of the deal was not disclosed. In a press release, the company noted that the deal marked its first foray into international markets. Daniel Folkman, Gopuff’s senior vice president of business, said his company plans to expand onto the continent as well. “At Gopuff, we have been consistently focused on responsible growth, strategically establishing the physical infrastructure and footprint needed to bring Instant Needs to new geographies and customers,” said Folkman.

Fancy vows to deliver products in 30 minutes or less using “micro-fulfillment centers” in six cities across the UK. The goal of using micro-fulfillment centers is to supply products to the actual consumer, thereby cutting down on the time needed to deliver online orders. Fancy and Gopuff share similar delivery models, as Gopuff calls itself the go-to platform for consumers’ immediate, everyday needs.

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