NEW YORK—COVID-19 accelerated demand for food delivery services, which jumped from a $8.7 billion business in 2015 to $26.5 billion in 2020, according to BussinessOfApps.com, and new service providers are vying for their share of the market.
One of those startups is Gorillas, Europe’s on-demand grocery delivery service via bicycle courier. The German-based company launches U.S. service in Brooklyn on May 30 with promises of under-10-minute deliveries of products like fresh produce, dairy and pet products, Business Insider reports.
“Gorillas exists to create a world with immediate access to your needs. We are not business people building a delivery company—we are delivery people building a business,” said Kağan Sümer, CEO of Gorillas.
Gorillas employs a fleet of bike couriers who deliver products from so-called dark warehouses. Consumers order using an app and pay $1.80 delivery fee in the U.S., with no minimum purchase required. Shoppers may order a single item or a basket of goods. However, there are some weight limitations as groceries are delivered by bike.
“We are also eyeing other urban markets, and you can expect to see Gorillas launch in other East, Central and West Coast cities by the end of the summer,” a company spokesperson said.
Gorillas will compete with Fridge No More, a startup that delivers groceries by couriers on electric bikes within 15 minutes to the Williamsburg neighborhood of Brooklyn.
Despite business restrictions easing in the U.S., the meteoric growth of online grocery orders may be slowing. Edison Trends, which tracks online grocery transactions, said e-commerce grocery spending was up 88% in February 2021, compared with February 2020. In March, overall spending increased 37%.
Gorillas believes consumers will continue to use online grocery services because they’re now addicted to the convenience it provides.
NACS Research last year released its landmark “NACS Last Mile Fulfillment in Convenience Retail” study, outlining the opportunity for convenience retailers to grow sales and expand customer reach as the market evolves. Download it free here.