Gorillas, Buyk, and Gopuff are opening dozens of rapid delivery warehouses across Manhattan.Getir is the latest arrival in NYC but one of the most experienced of the rapid delivery players.The launch comes as one ultrafast player, 1520 , shut down last week.More than 100 rapid-grocery-delivery services are operating worldwide, with some of the most experienced players coming out of Germany, Russia, and Turkey.
The operators behind some of those ultrafast-delivery services, along with US upstarts, are taking on the Big Apple.
The New York City battleground, as of early February 2022, includes DoorDash, Gorillas, Buyk, Gopuff, Fridge No More, Jokr, and Getir.Most promise delivery within 10 to 15 minutes in New York.
As the competition heats up, some are looking to possibly go public like Gopuff while others are looking for an exit.One player, 1520, which was previously on this list, shut down in early December.Jokr also is reportedly discussing a potential sale to rivals, according to The Information .But other startups say they’re seeing early wins.
“The New York City launch has been a massive success,” Buyk cofounder Slava Bocharov told Insider in an October 2021 email.
“There is no more appropriate city to launch ultrafast-grocery-delivery service than New York.It’s the quintessential fast-paced, go-getting city where time is an extremely valuable resource.”
Insider has been tracking the ultrafast-delivery players across the US.
Here’s what you need to know about the startups competing in New York City.
DoorDash CEO: Tony Xu
Year founded: 2013
Headquarters: San Francisco
DoorDash said Monday, December 6, that it is launching 10 to 15 minute delivery in New York City, entering the crowded space months after rapid delivery startups Gorillas and Buyk launched in the city.
The restaurant delivery provider is kickstarting its rapid delivery service from a new DashMart store in Chelsea, which will carry about 2,000 items such as fresh and frozen groceries and snacks.DashMarts supply DoorDash’s direct-to-consumer grocery delivery service.
The so-called “dark store” in Chelsea is the first DashMart in New York City, though DoorDash has been delivering food in the city since 2015.
The company is betting big on the future of rapid delivery.It has created a new company, dubbed DashCorps, that will support the future expansion of 10- to 15-minute deliveries from a variety of retailers, including grocery and convenience store partners.
“We’re really excited about this space and how DoorDash can position itself in the market,” Fuad Hannon, vice president of operations at DoorDash, told Insider.
As such, the company has been looking at the ultrafast space for a while as the new service will give DoorDash customers “time back in their day,” Hannon said.
“As we think about customer expectations, they’re really moving in one direction — and that’s just for increased convenience,” he said.
Unlike DoorDash’s restaurant delivery business which uses gig drivers, DashCorps couriers are W-2 employees.They will be stationed at the DashMart location in Chelsea, where they will use bikes to make deliveries from 7 a.m.to 2 a.m.
daily.There are no caps or minimums for orders.
Delivery fees range between 99 cents to $1.99, depending on the delivery location, Hannon said.That’s on par with rivals in New York who charge about $2 for each delivery.Delivery is free to members of DoorDash’s subscription service, DashPass.
Buyk Total funding : $46 million
Notable investors : CM Ventures, Fort Ross, Citius
Founder: Slava Bocharov
CEO: James Walker
Year founded : 2021
Headquarters: New York City
Buyk , pronounced “bike,” launched its dark-store operation in parts of Manhattan in August.
It was founded by Bocharov and Shishkov, the cofounders of ultrafast-delivery service Samokat in Russia.Buyk is a separate company from Samokat, which the cofounders scaled and sold last year.
Buyk’s dark stores stock 2,000 to 3,000 items, including fresh produce, that are delivered by couriers on bikes.The company’s tech stack, which was developed in-house, takes a “hyperlocal” approach to ensure each dark store is stocked according to the specific needs and desires of consumers in each neighborhood.
Bocharov said Buyk’s technology gave “us a competitive advantage over new players in the market who are using off-the-shelf or untested solutions.”
Buyk promises delivery within 15 minutes and does not charge delivery fees.Its couriers are gig workers who are paid for their time, not for the number of orders, a company spokesperson told Insider.
Bocharov said Buyk was seeing daily orders “steadily rise” since its launch, with users coming back frequently.
“We are starting to see more customers with three or more orders per month, which demonstrates that New Yorkers are catching on to the idea of ultrafast grocery delivery,” he told Insider.
In November, Buyk brought on James Walker, formerly of Nathan’s Famous, to run US operations.He has since expanded into private-label goods .
Fridge No More Total funding: $16.9 million
Notable investor : Insight Partners
Founders : Pavel Danilov and Anton Gladkoborodov
Year founded : 2020
Headquarters : New York City
Fridge No More started offering 15-minute grocery delivery in a few Brooklyn neighborhoods earlier this year, including Park Slope and Williamsburg.
Since then, it has expanded into Queens and most of Manhattan, according to a map of areas that Fridge No More serves .
Powering that expansion is a $15.4 million Series A funding round announced in March and led by Insight Partners.
Fridge No More’s approach to attracting customers is simple, cofounder Anton Gladkoborodov told Insider in March.Delivery is free, and there’s no minimum purchase that customers need to make.
That means shoppers can order something small, even a single apple, to try out the service, Gladkoborodov said.
“A few hours after that order, they buy something bigger, and they say, ‘Wow, it works.Let’s try it once again,'” Gladkoborodov told Insider.
At Fridge No More’s dark stores, full-time couriers assemble orders in no more than five minutes.Then, they ride off to their delivery destination on scooters.
In New York, Fridge No More’s stores deliver to addresses within 1 mile of each of its dark stores.But cofounder Pavel Danilov told Insider in March that Fridge No More was thinking about expanding its model to the suburbs, which would involve serving customers over longer distances.
Gopuff Total funding : $3.5 billion
Notable investors : SoftBank Vision Fund, Baillie Gifford, D1 Capital Partners, Luxor Capital
Co-CEOs : Rafael Ilishayev and Yakir Gola
Year founded : 2013
Headquarters : Philadelphia
Gopuff launched in the Big Apple in October and delivers from more than a dozen locations in Manhattan, Brooklyn, the Bronx, and Queens.The company said it planned to expand to Staten Island and double its New York City locations by the end of the year.Most deliveries in New York City are available 24 hours a day, seven days a week.
The delivery operator said it operated “hybrid” stores in New York City.The vast majority will eventually have a retail component, where residents can shop, eat, or pick up items, the company told Insider.
Gopuff delivers directly to customers using fulfillment centers, as well as BevMo and Liquor Barn stores, across the US.
It charges $2 per delivery, and packages arrive within 20 to 40 minutes.In New York, the company said it was striving for 15-minute deliveries.
With Gopuff, New York City is getting a grocery-delivery player that has been in the game for eight years.In July, the company raised a $1 billion funding round , growing its valuation to $15 billion.
Last month, Gopuff laid off about 100 workers on its warehouse and operations team and paused plans to open new warehouses, Insider reported.
The company is considering an IPO later this year, according to Reuters.
Cofounders Rafael Ilishayev and Yakir Gola launched Gopuff as a delivery service for colleges after Gola grew tired of driving around fetching snacks and drinks for his friends.The idea was to deliver convenience-store items, including smoking supplies (but not cigarettes), at any time of day.
Over the years, the company has expanded its product mix to roughly 4,000 items, including alcohol, baby-care items, pet supplies, drugstore goods, eggs, and ice cream.In January, it launched items including flavored almonds, batteries, and bottled water under Basically, its first private label .
In July, Gopuff began delivering prepared foods and beverages such as specialty coffee, breakfast sandwiches, specialty pizzas, chicken fingers, tater tots, and salads.
Since fall 2020, the company has been on an acquisition tear after raising millions of dollars in venture-capital money.The delivery unicorn has used that massive war chest to buy BevMo, the UK delivery startup Fancy, Liquor Barn, and the logistics firm RideOS.In August, it also bought the British grocery-delivery startup Dija to fast-track its delivery footprint in Europe.
Gopuff operates in 1,000 US cities, including Miami, Chicago, Boston, Dallas, Houston, Washington, DC, Philadelphia, Atlanta, Phoenix, and Boston.
Gorillas Total funding : $1.2 billion
Notable investors : Delivery Hero, Tencent Holdings, DST Global, and Coatue Management
CEO : Kağan Sümer
Year founded : 2020
Headquarters : Berlin
Gorillas, a German delivery startup, will alter the way US consumers shop for groceries, CEO Kağan Sümer told Insider when it entered New York City in May.
“So if this model is executed the right way, it is going to be transformative in a big way,” he said at the time.
Unlike Buyk and Gopuff, Gorillas does not rely on gig workers to fulfill deliveries.
Instead, it employs a fleet of bike couriers who deliver goods in 10 minutes from strategically placed dark stores that carry a selection of 2,000 to 2,500 items.Goods are kept in temperature-controlled backpacks worn by couriers.
The ultrafast-delivery operator announced nearly $1 billion in Series C funding on October 18.The round was led by the European delivery operator Delivery Hero.Its war chest has led to rapid growth for the year-old startup.Of the more than 200 locations it operates in nine countries, 140 have opened in the past six months.
In New York City, Gorillas delivers from 12 dark stores that serve nearly all of Manhattan, as well as several more areas in Brooklyn, and parts of Queens and the Bronx.On Saturday, Gorillas launched a dark store in the Little Caribbean neighborhood in Brooklyn, the company said.
Sümer said once customers experience the convenience of ultrafast delivery, they become hooked.That seems to be the case in Brooklyn so far.
Customer feedback “has been extremely positive,” with the average customer shopping with Gorillas more than twice a week, the company told Insider over the summer.The company has also expanded its selection of vegan options based on demand.
Gorillas, which charges a flat $1.80 delivery fee on all orders, initially said it planned to expand operations to other US cities on the East and West coasts, as well as the Midwest, by the end of the summer.
But in October, the company said its journey in the US was just starting.”For now, we are focused on growth in New York City to reinforce our existing footprint before expanding to new states.”
Getir Total funding: $1.2 billion
Notable investors: Sequoia Capital and Tiger Global
CEO and Cofounder: Nazim Salur
Year founded: 2015
Headquarters: Istanbul, Turkey with US offices in Chicago and New York City.
Getir, founded in Turkey in 2015, is the second most experienced of the rapid delivery players.
The company, now operating in nine countries, recently joined the fray of rapid delivery players entering the US market.In late 2021, it launched operations in Boston, New York City, and Chicago.
CEO Nazim Salur is not concerned about entering the crowded New York City space later than others.
The newer startups in the space “don’t have the expertise” of “running such a complex business” in other markets for a long time like Getir, he said.
“They’re trying to make it in New York, and they’re trying to learn the business at the same time.Whereas, we know what we’re doing,” he said.”We know how to run it, how to supply our products, how to build the campaigns, what works, what doesn’t, how to open the stores, how to run a shift, how to use AI, how to plan everything.”
For example, while some fast players offer as many as 3,000 to 4,000 items, Getir sticks to selling about 2,000 items.
“Bigger is not always better,” he said.
If you have too many items, that leads to waste and ultimately hurts margins, he said.
The same is true for staffing of its W-2 employees.The company leverages data and technology to ensure they have adequate staffing during peak and non-peak periods of the business, he said.
Jokr Total funding: $170 million (Series A only.Jokr said it was not disclosing its initial seed-investment amount.)
Notable investors : SoftBank, Tiger Global
CEO and founder : Ralf Wenzel
Year founded : 2021
Headquarters : New York
Jokr started 15-minute delivery on groceries in parts of Brooklyn and Queens, as well as in Manhattan between 35th Street and the border of the financial district, in June.
Since then, it has added the Upper East Side, the Upper West Side, and the financial district to the areas it serves, a company spokesperson told Insider.Last month, Jokr also started delivering beer, hard seltzer, and hard cider.
But less than a year after venturing into the city, Jokr is already considering a sale of its New York operations, The Information reported Monday.
The report cited losses and investor pressure to focus on less-competitive markets in Latin America as reasons for the potential exit.
That marks a big shift from the expansion plans Jokr had in NYC: In April, real-estate firm Kassin Sabbagh Realty told The Real Deal that the company was interested in opening as many as 100 stores in four boroughs.The report did not specify a timeline for opening that many locations.
Ralf Wenzel, a former SoftBank managing partner, founded the company in March.Within months, it secured a $170 million Series A round , among the largest early-stage funding rounds in history.
Unlike some other recently founded players, Jokr has global reach.Besides New York, Jokr operates dark stores in Europe and Latin America, including Warsaw, Poland, and São Paulo.The company told Insider in July that it was opening about one delivery hub a day across the world.
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