Poor harvest in grocery funding
This year, VC investment in grocery delivery is 4x down to $2.9 billion. Investors are worried grocery delivery, and especially ultra-fast grocery delivery, might not turn profitability any time soon.
According to new data by Quartz, leading ultrafast grocery delivery services have relied on discount offers to push the topline. The average percentage of orders that are discounted since August 2021 by market:
🇺🇸 USA: Gopuff 24% of orders
🇬🇧 United Kingdom: Gopuff: 48%, Gorillas: 36%
🇩🇪 Germany: Getir: 74%, Gorillas: 30%
🇫🇷 France: Getir: 81%, Gopuff: 62%, Gorillas: 43%
The large percentage of discount orders implies unclear path towards profitability. Consolidation is required to reach a larger scale and bring prices down.
Price inflation and supply-chain bottlenecks are impacting how consumers buy and consumer food. How many consumers will be willing to pay a premium to receive a grocery item in under 30 minutes?
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