Gorillas is an on-demand grocery delivery startup founded by Kağan Sümer and Jörg Kattner in May 2020. This company was established in Straßen and Rheinland-Pfalz. Then, it began to operate in Berlin and Cologne.
Gorillas – Ten Minute Grocery Delivery in Germany
According to Kağan Sümer, a founder of this company, Gorillas was started based on the concept of micro fulfillment and to address grocery markets outside of weekly bulk shopping. They collect customers’ data in a particular area and offer single sale items in a 10-minute grocery delivery format by charging a delivery fee of 1.80 Euros with no minimum order size.
They aim at providing the grocery to be delivered within ten minutes by utilizing hyperlocal fulfillment centers. It completed its second round of funding in December 2020 at a valuation closed at $44 million. In the third funding round, it has raised $290 million at a valuation that surpasses $1 billion.
Gorillas Specialize In Delivering Fresh Groceries
Recently, Gorillas company is working on starting a local delivery-only grocery store and employing their own riders. Their targeted customers are people who do weekly shopping for fresh groceries, odd household items, ingredients for a dish they are cooking right then, and essentials like milk.
The founder of this company points out that large supermarkets tend to manage the delivery service on every side of the supply chain instead of fulfilling the customers’ needs. In this, they focus on groceries with a long shelf life for a weekly shop.
Whereas, Gorillas’s business model focuses on providing fresh groceries to the customers. What if people need any ingredients when they cook? The company serves them by providing fresh essentials at the right time. It is not only eyeing the hyper-local delivery market.
How Does A Grocery Delivery App Like Gorillas Work?
Most grocery delivery businesses are linked to mobile apps. Similarly, the Gorillas app has the basic features of the on-demand grocery delivery service in which customers can track the delivery status using the geolocation system.
It is not that complicated to use the app. Customers can install the app from the Google Play Store or App Store and sign up for the app using the required details. The app shows different categories, including fruits, vegetables, organic products, beverages, cleaning, babies, pets, and much more. The local producers section stands out to reinforce the idea of proximity trade.
Customers can choose any items they need and add them to the cart. Once they make a payment using the available payment modes, the ordered items will be delivered to their doorsteps in about 10 minutes. The primary value of this business model is simplicity, speed, and proximity. This was the main reason why people prefer the app, especially during the Covid-19 pandemic.
Reinventing The Grocery Delivery Service With Accordance To The Ever-Changing Market
Unlike other grocery delivery service companies, Gorillas is focused on servicing convenience grocery stores and providing groceries to people whenever they need it. The app is not an alternative solution to the e-commerce of supermarkets. As mentioned earlier, supermarkets are only focused on their business needs rather than putting the customers’ needs first.
Gorillas aim to provide a seamless user experience as they prioritize the customers’ needs in which the customers get their ordered products in 10 minutes. This is a greater advantage of this business model. In addition to this, offering fresh products at a competitive price (less than 2 euro per delivery) makes this a revolutionary business model. Yes, a dark store is a promising concept as it is more beneficial to the online store and customers.
You might think, how could this business model be profitable? It is no surprise that they have raised 36 million euros even in the first round of financing. Notably, important investors in Europe are on board. This company operated in Berlin in the initial stage and it is expected to expand its network in more German cities.
Plans Funding At $6 billion Value In The Upcoming Funding Round
According to Bloomberg, Gorillas Technologies is raising funding at a valuation of $6 billion. It is likely to target $500 million from investors. This information is based on the early stage of funding, and it might change once the funding round ends.
The latest craze in-home delivery is the primary reason that ignites the investors’ desire to fund a grocery delivery app like Gorillas. Considerably, the Covid-19 lockdown has changed the traditional business and shifted it to the digital space.
The previous funding round was in March 2021, as it raised about $290 million at a valuation that put it above $1 billion. In this funding round, the prominent investors are Coatue Management, DST Global, Tencent, Atlantic Food Labs, Dragoneer, and Fifth Wall. Till date, Gorillas is operating in 18 cities in Germany, Netherlands, London, and Paris. Currently, it has a team of 1000 riders and users have access to purchase 2000 items via the app.
Cost Estimation To Develop An App Like Gorillas
If you intend to develop an app like Gorillas, you should consider several factors like finding a niche, choosing the features, deciding on revenue models, and so on. We have gone through more about Gorillas and its working model in detail. The next thing you must know now is the cost of developing a similar app like Gorillas. Let’s discuss this in detail.
There is no specific cost in developing an app like Gorillas as it is a variable parameter depending mainly on the individual holistic business requirements. To a rough estimation, the app development cost depends on the following elements.
- Application type (native or cross-platform)
- Development team size
- App complexity
- Feature-set integration
- Location of the app development company
- Technology stack
The prominent element that affects the cost structure is feature-set integration. When you want to integrate more features, the cost will be elevated significantly. To know the exact pricing details of the Gorillas like app development, reach out to us.
The dark store concept has revolutionized the remunerative grocery delivery market. It is the out-of-the-box approach that includes a strong infrastructure and a sustainable business model prioritizing the customers. Then, what’s next? Make use of this opportunity and set foot into this industry with an app like Gorillas.
We at UberLikeApp, proffer the white-label grocery delivery app solution that empowers you to launch the Gorillas clone app today and dive into the thriving industry.