DoorDash in talks to invest in German grocery app Gorillas
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DoorDash, America’s largest food delivery group, is set to make its first investment in Europe by taking a stake in Gorillas, the fast-growing Berlin-based grocery delivery app.
Gorillas was looking to raise hundreds of millions of dollars in new funding at a valuation of around $ 2.5 billion, according to people familiar with his plans, a far cry from his initial aspiration for a $ 6 billion prize. DoorDash had expressed interest in joining the tour, the people said.
The deal has yet to be finalized but could be done later this month, they said. The size of DoorDash’s stake could not be learned, as talks with investors continue.
The talks come after Gorillas faced protests over how he treats his delivery men and warehouse workers, as well as the departure of senior executives, fueling criticism from Kağan Sümer, his hard-line managing director.
Gorillas has already raised more than $ 300 million from investors including Tencent, DST Global and Coatue Management, reaching a valuation of $ 1 billion with its final round in March. Some of these existing investors are likely to participate in the new cycle.
Spokesmen for DoorDash and Gorillas declined to comment.
DoorDash has become the largest food ordering app in the United States in terms of customer spend, according to Edison Trends, with a market cap of $ 58 billion.
Its investment in Gorillas would be a rare case where DoorDash purchases a minority stake in a similar company. In 2019, he acquired American meal delivery company Caviar for $ 410 million in cash and stock.
It would also mark another important move by DoorDash to strengthen its presence in Europe, particularly in Germany. In May, the Financial Times reported that DoorDash had started preparing to launch its food delivery services in the country, posting 15 jobs for a Berlin-based team.
Gorillas launched in New York in May and has spread to more than 50 cities across Europe in recent months.
Express delivery services offering groceries and convenience items, such as Getir and GoPuff, have raised billions in venture capital funds this year, reflecting investors’ hope that online ordering habits have developed. during the pandemic will persist as economies reopen.
Several startups have emerged in the United States and Europe over the past year, promising deliveries from a network of small local warehouses, or “dark stores,” to customers’ homes in just 10 minutes.
The market is already starting to consolidate. GoPuff has acquired UK-based Fancy and is reportedly in talks to buy Dija, a similar start-up founded by former Deliveroo executives. The FT reported earlier this year that DoorDash discussed a potential investment or acquisition with several of Europe’s grocery delivery apps.
It is not yet clear whether DoorDash will integrate Gorillas into its own restaurant delivery service as part of the investment. In May, Uber partnered with GoPuff to feature their pick in the Uber Eats app.
The interest in DoorDash comes as Gorillas has faced a series of negative headlines in recent months, including the protests in Berlin this summer. Some runners complained about unfair dismissals and poor working conditions. Like most of its competitors, it also remains heavily in deficit. Customer data was leaked online following a breach in May.
In an interview last month with The Information, Sümer – a former consultant at Bain – admitted to taking “performance enhancers” when working at a previous start-up, but said his drug use was “dubious. pass “. Two of Gorillas’ co-founders left the company earlier this year.