Quick commerce app Gorillas is growing in Europe-where it is launching five lines of own-brand, so-called private label products-but faces critical issues, including in Italy, leading to 300 layoffs.
Gorillas, off to private label
On 9.6.22 the Gorillas app debuts in Germany, France, Britain and the Netherlands with four food brands of its own. 50 products in 11 product categories, pasta, mozzarella di bufala campana DOP, sliced meats, dairy products, pesto, snacks, etc. (1)
There are four private labels :
– Gorillas daily, for everyday shopping,
– Gorillas premium, for specialties,
– Hot damn, cafeteria,
– start-up beer, a line of beers in principle consisting of two craft products.
Gorillas-branded products are proposed as consistent with the company’s policies of transparency and sustainability. It is a pity that this propensity manifests itself in the use of renewable energy and recycled packaging, but not also in the selection of organic food.
Relaunch and layoffs
The initiative is part of the relaunch plan, announced by Gorillas by press release 24.5.22, in the 5 markets source of 90 percent of revenues. Germany, France, Britain, the Netherlands-where the project meets with strong resistance, as we have seen-and the United States.
‘We will work even harder on our assortment, our pricing, our order experience, and our logistics to offer our customers the best possible shopping experience. At the same time, we will continue to develop the Gorillas brand and position it as a market leader to further build a bold, authentic and value-oriented brand’.
However, the plan also includes 300 layoffs. Labor remains the first expendable factor even in 4.0 apps. The company’s co-founder and CEO, Kagan Sumer, explained the contingency that dictated the downsizing. And addressing his former employees, he concluded
‘I know you may feel frustrated above all else. This same frustration led me to build Gorillas after I was also affected. I encourage you to be frustrated. To me, to the markets, to the company. And then channel that frustration to create your new legacy‘. (2)
Away from Italy? Meanwhile, the surcharge
Of the other countries in which it operates-Italy (31.5.21), Spain, Denmark, and Belgium-the company speaks of ‘very attractive stand-alone markets, we are evaluating all possible strategic options for the Gorillas brand.’
One ‘option’ already applied in Italy is the introduction of asurcharge of 2.10 euros for orders under 10 euros, in addition to the fixed delivery charge of 1.80 euros. With one euro tip to the delivery man, it comes to 5 euro. A little too much to still believe that Gorillas is the app that delivers that missing ingredient in 10 minutes while you’re cooking. Too much at least for exhausted Italian pockets.
Notes
(1) Press release. Gorillas enters the private label market. 7.6.22 https://gorillas.io/en/blog/gorillas-enters-the-private-label-market
(2) Press Release. A Message from Co-Founder and CEO Kagan Sumer. 5/24/22 https://gorillas.io/en/blog/a-message-from-co-founder-and-ceo-kagan-sumer
Professional journalist since January 1995, he has worked for newspapers (Il Messaggero, Paese Sera, La Stampa) and periodicals (NumeroUno, Il Salvagente). She is the author of journalistic surveys on food, she has published the book "Reading labels to know what we eat".
