Business is losing. Now it’s about getting economies of scale through size as quickly as possible.
(Photo: Umit Bektas)
Berlin For Kagan Sümer, speed is an end in itself: within a few months, the founder of the fast delivery service Gorillas turned his company into a unicorn, i.e. a start-up with a value of more than one billion dollars. And his bicycle couriers often delivered the groceries ordered faster than the competition.
However, gorillas then ran into problems faster than ordinary companies. Losses piled up, and the nearly $1.3 billion raised from venture capitalists soon dwindled to nothing.
Shortly before the collapse, Getir took action and made gorillas the first unicorn to get a new owner in the economic crisis. The previous number three, which has financially strong investors from the Middle East behind it, hopes that the takeover of the German competitor will give it a better position in Germany. But above all on the very important British market. There, milk, beer and bread are ordered online to a much greater extent.
Only sheer size can save the business model. Because so far the providers, to which Flink belongs in Germany, are in the red.
Top jobs of the day
Find the best jobs now and
be notified by email.
The mega deal in the fast delivery service industry is unlikely to be the only takeover in the start-up industry. Since almost unlimited capital was available for years, the start-up scene experienced a veritable gold rush.
The end of the gold rush in the start-up industry
However, this one is over. In Germany, venture capital investments have almost halved due to higher capital market interest rates and higher risks. Investors are paying attention to the substance again.
>> Read also: Gorillas, Taxfix and Co. – Will these 36 billion German start-ups survive the crisis?
Many companies can only buy this substance – especially those that offer services that differ only in the shape and color of backpacks or bicycles. Or put the e-scooters with different looks on the street or sell goods on Amazon.
There will be massive consolidation in these areas, highlighted for the first time by the Gorillas deal. For those affected, it’s all about speed now. Not only because they otherwise run out of money like gorillas, but also because the good deals probably come about at the beginning of the wave.
Those companies that remain are threatened with bankruptcy. This is what happened with Flink’s Austrian subsidiary. It hurts, but improves Flink’s prospects in the long term.
If you want to keep the chance of a good deal, you have to prepare for the sale. This usually means laying off employees. Gorillas and Getir have also demonstrated this.
More: Getir from Turkey buys Berlin delivery service Gorillas