Is there a future for 15-minute delivery services? — Vophs

The wreckage of the super-fast delivery market stretches across 14th Street in Manhattan, New York. About a year ago, storefronts with opaque window coverings and fancy names — Buyk, JOKR, Fridge No More, Gorillas — dotted the street. Each pledged to deliver groceries and other items in 15 minutes.

Today, only the Gorillas remain in business on 14th Street.

Fridge No More and Bike, both based in New York, Went out of business Same week in March 2022. JOKR, Headquarters In Berlin, three months later Exiting the US market to focus on Growth in Latin America.

Michelle Cheng

Completion of JOKR closed in Chelsea, New York.

Michelle Cheng

Closed refrigerators near Union Square, Manhattan More completions.

Zach Seward

The hastily abandoned JOKR fulfillment center on the Upper West Side.

Michelle Cheng

No ex-refrigerator in Chelsea, New York.

The rapid rise and fall of superfast delivery

According to Pitchbook, venture capitalists invested $28 billion in fast delivery startups in 2021, double the amount in 2019. The excitement in the market allowed these startups to grow bigger and faster.

But a sustainable business model for ultra-fast delivery still lies. The biggest ultra-fast delivery companies will depend on huge order volumes and changing consumer shopping habits to make a profit. This is incredibly difficult to achieve in a crowded marketplace that includes companies like Amazon, Walmart, Instacart, DoorDash, and even Uber that offer food delivery.

Sulaiman Sharabi, managing director of commercial real estate firm Kasin Sabagh Realty, worked with JOKR in its one year. Expansion in New York. He said it’s the fastest business he’s seen open and close with multiple locations in New York City. “The main reason is the amount of competition in the New York market and in the US as a whole,” said Sharabi.

What is the future of 15-minute delivery?

Still, the gorilla, that is Which is worth 1.3 billion dollars.According to PitchBook, remains in business in New York. To differentiate itself from other quick-commerce players, Guerrilla, which has about 20 fulfillment centers and 200 stores globally, said it has not diversified its focus through traditional retailers such as local bodegas and liquor stores. Focused on offering go-to products. At competitive prices.

“We are not an epidemic,” Alex Gabriel, head of external and government affairs at Guerrilla, wrote in an email. He said that stability would help the gorillas to gain profits.

The startup also collaborates with more than 25 local community fridges, suggesting it wants to make good with the city. Earlier this year, the New York City Council said it wanted to. Strict regulation Along with micro-fulfillment centers, there are concerns VC-backed delivery companies, hired to help fulfill deliveries faster in urban areas, are taking away retail space. From small businesses and bodegas.

Michelle Cheng

Gorillas fulfillment center, which replaced Bayk, in Bay Ridge, Brooklyn.

In the future, it’s “unlikely” that Gorilla will offer 15-minute delivery beyond groceries and household needs, Gabriel said. He added that “emerging tech” could allow Gorillas to offer consumers a more personalized experience, such as the time of day or even your health conditions, based on both the purchases you’ve made before. Providing recommendations based on this.

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