Popular during the pandemic, but economically more in need than ever: According to a report, the number of competitors in the fast delivery service industry is decreasing. According to this, the company Gorillas is to be swallowed up by the rival Getir.
According to a newspaper report, negotiations over the purchase of the Gorillas express delivery service by rival Getir are on the home stretch. The contract should be signed on Friday, wrote the “Handelsblatt”, citing insiders. In this context, Gorillas will receive bridge financing of 40 to 50 million euros.
Company boss Kagan Sümer will probably take his hat off. In addition, both Gorillas and Getir would have to accept a significant devaluation. As part of the deal, the companies would only be valued at seven billion dollars, half as much as before. Gorillas declined to comment on the matter. Getir was initially unavailable for comment.
Grocery delivery services have boomed during the pandemic. As a result, gorillas achieved so-called unicorn status within a few months. Stock marketers use this to describe startups that are valued at more than one billion euros. However, there is fierce cut-throat competition in the industry, which is also home to companies like Flink and Jokr.
In addition, companies are struggling with rising prices and high personnel costs. Gorillas therefore cut hundreds of jobs a few months ago and withdrew from some countries. Experts expect further mergers and acquisitions in this sector. There is only room for one or two providers in the market if the business is to pay off in the long term.
