Gorillas Leaves Belgium, Hands Off Some Business to Efarmz

On-demand grocery delivery startup Gorillas is closing its warehouses in Belgium and handing off some of its business for undisclosed terms to Belgium organic and seasonal products delivery firm Efarmz, Reuters reported on Friday (June 24).

Like many delivery firms bringing supermarket food and other essentials to people’s doorsteps during the pandemic, Gorillas experienced high demand followed by fast-paced expansion.

Post-pandemic consumer habits and tight competition, along with inflation and other conditions affecting the worldwide economy, have brought about changed demand. Gorillas is also reviewing operations in Belgium, Denmark, Italy and Spain.

Launched in 2020 by CEO Kağan Sumer and CTO Ronny Shibley and based in Berlin, Gorillas, the startup offered ultrafast grocery delivery in as little as 10 minutes.

See also: German Delivery Service Gorillas Cuts 300 Jobs

Gorillas said last month that it was planning to lay off about 300 people as it focuses on profitability. Since last October, the company tripled in size following a $921 million funding round, PYMNTS reported. Germany, France, Britain, the Netherlands and the U.S. comprises about 90% of the firm’s business.

Read more: Gorillas Talks Merger, Sale Potential with Grocery Delivery Rivals

Last week, Gorillas had merger and acquisition talks with Gopuff, Jokr and other competitors. JPMorgan Chase & Co. is working with Gorillas to weigh options as the German-based food-delivery startup tries to strategize in a competitive, post-pandemic, high-inflation time, PYMNTS reported.

The company is suspending plans to launch in New York City and has also pulled the plug on expanding to Los Angeles and Chicago.

Related: Daily Grocery Aggregator Use Is Spiking, PYMNTS Research Reveals

In the U.S., daily use of same-day restaurant and grocery aggregators is on the rise, according to data from the May edition of PYMNTS’ ConnectedEconomy Monthly Report. One in 16 consumers uses a same-day grocery aggregator like Instacart every day, up from about one in 21 in April.