E-commerce applications are ruling the market currently and Grocery delivery apps are one of them. Would you happen to know? According to a report by Statista, revenue generated by business owners in this segment has reached $565.30 billion in 2023. As we know China is leading this market followed by the USA and Japan and the successful number of grocery delivery customers is expected to reach 164.5 Million by the year 2027.
So, after seeing the buzz of grocery delivery app like the Gojek Clone app, you must know about the market players so that you can create a blue pint of it and can do better for your business. In addition to that, learning from market players you can make a blueprint on how they succeed in this business. This strategy will help you reach your milestone earlier than them. If we talk about the app Gorillas then let us tell you that it is one of the most popular grocery apps and in this blog, you will get to know if Gorillas Delivery is a success or failure project.
If it is successfully ruling the market then you can learn how they are working and can replicate or innovate their strategy of success to generate your success story. And if it’s a failure then you will get to know what they have done wrong in their business so that you don’t make such mistakes or just avoid them at the correct time.
As everybody knows COVID-19 has forced us to change the way we deal with our daily lives. Hence, the method of doing groceries for every individual is also changed. In today’s busy world people don’t want to go to the physical outlet and then purchase items, as it takes time and energy, most important is that visiting any physical place is not safe in the matter of health. We may connect with a person who has some transmitted disease and it can also affect our health. That is the reason people choose online grocery shopping rather than going physical.
Gorillas wants to serve every kitchen thing online so people don’t have to go out again and again. Gorillas has a huge popularity among people as it started its business with “groceries in 10 minutes” That simply means that if you order from Grillas you will get everything in 10 minutes. After some time things changed for Gorilla’s business model, slowly and steadily it gets failed in the market and nobody was interested in shopping from Grillas. So, in this latest blog of ours, you will get to know how Germany’s fastest-growing grocery delivery app failed and how it got famous initially.
In the above-given section we have pronounced the name of the Gojek Clone app, well, Gojek is an on-demand multi-service app solution that offers 110+ services such as taxi booking grocery delivery, food delivery, etc, in a single app. If we talk about its downloading stats then it must be around 190 million for both the Android app and IOS.
That was the extra information in case you want to learn about it. Now let’s get back to our topic of the Gorilla Food Delivery App.
Gorillas Stats and Facts
Here are some important stats and facts about Gorillas’ funding and other major milestones achieved by them.
- Founded: May 2020
- Founder: Kagan Sumer, Felix Chrobog, Ronny Shibley
- Headquarters: Berlin, Germany
- Target market: 9 countries including the USA and the UK
- Revenue (2021): $220 million
- Business model: Hybrid
This image will help you to see how storage was the Gorillas’ business timeline. In this image, you can easily see the rise of the Grocery delivery app and its downfall as well. Now for more detail keep reading the blog as in the next section of our blog we are going to discuss the plan of “How fast do Gorillas run”.
How Do Gorillas Work?
Here in this section, we are going to see How Gorillas Work, here we will deeply learn Gorilla’s business model. The project was started in Berlin initially, Gorillas was a food and grocery delivery service business model. Gorillas’ business model was not just for providing groceries but it was also served alcohol. That simply means it was also an on-demand alcohol delivery app . In addition to that, this model also offers access to a wide selection of things while charging them a fee for sales and delivery.
Gorillas was not only famous for its success or its failure but it was also popular for for its working model. Gorillas has a different and can say unique working model that is completely different from other grocery working models in the market for example; Apps like Instamart. It made money by buying groceries and reselling them for a profit… strange right?
The dark store business really helps Gorillas Food Delivery to make money. Want to know how? Then keep reading… actually, dark Store was a network that helped Gorilla make money by buying grocery products and selling them for a profit. Therefore, they tried to maximize their revenue through efficient inventory management.
Inventory storage in the grocery business also plays an important role and it is also a bit costly not everybody can afford that. But in the case of Gorilla, it was not like that as they owned their warehouses. This was the reason their delivery times were faster than their other competitors.
As they depend on the dark store revenue model therefore they do not charge more pennies as delivery fees for providing groceries in just 10 minutes.
Gorilla hires full-time delivery partners that’s why everybody wants to join them. They offered multiple benefits like health insurance, fixed employment contracts, and paid vacation to their employees.
We know that after reading all these points and the given stats you must be impressed with this business model and it may sound like an exciting and disruptive business model to you. To be honest, the founder of Gorillas has done something out-of-the-box that offered them this huge growth in the grocery app market and we have to say that nobody was implementing this same strategy in their grocery business so that they can also make the same kind of revenue or profit.
So, now you must be thinking why we were calling it also a failed business model if it is doing so well in the market. See, every business makes mistakes but the smart business corrects their acknowledges its mistakes and corrects them at the right time. And this is how they won the Gorillas Market. In our next section, you will see what kind of mistakes Gorillas made at that time that made it a failed business model, learn them deeply and pay your full attention to this section as this will give you the rif of what should you not do in your grocery business model app.
Also Read: Know the Grocery Delivery App Development Cost and Features
What went wrong with the Gorillas Grocery Delivery App?
As discussed in our last para making mistakes in any business is normal but not correcting them is not. Here in this part of our blog, we will see what went wrong with Gorilla’s grocery delivery app that led them to close the app. Well, they said there is nothing called failure, it’s just you succeed in something or you learn a lesson. Therefore, with the journey of the Gorillas app, you will also learn multiple important things that can help you in your business model.
Gorilla delivery app closing journey is full of insights and learnings and it will also teach the world’s most important business lessons that one can only learn after not succeeding in anything. Follow the rule of learning from someone’s mistakes, as they said, learning from someone’s mistake is the biggest learning! Let’s get started…
They Burnt Cash
Gorillas were making extra revenue, obviously not in a good sense. And they were able to do so as they have opened multiple dark stores in the market. They have generated so much amount that they cannot show that in the market and they literally have to burn that it. And this major burning step was the biggest reason for their failure. According to some reports, Gorillas has opened approximately 200+ dark stores by 2022 in just a few years. Marketers have seen that there was a low probability of making that much revenue in just a few years the users were not that must, so how did they earn this must of revenue?
It is also said that Gorillas has burnt all the revenue generated by the in 2022 and the amount of the revenue must be around $1.3 Billion. After burning this much money they started looking for new funds after that. After this huge crisis in 2022, the company lost more than €1.50 for every €1 it made in net revenue. The marketing spending of the company averaged €8 for each order; that is too much for a Grocery Delivery App like Gorillas.
Gorillas’ leaders’ focus was always on hyper-growth instead of probability. In the time when Gorillas was generating a huge amount of revenue, one investor realized that the company wasn’t profitable and was just burning cash. After knowing this shocking fact they stopped pouring money and the venture eventually failed.
Gorillas’ Business Model Was Problematic
The another major downside of the Gorilla business model was it has huge investments to build warehouses and purchase products in bulk. So, according to that, they also invest in these warehouses in a good amount but after investing in warehouses they still have a good amount of revenue. And this was the major trust breaker for Gorillas’ investors.
The Post-Pandemic Effect
The grocery delivery apps business mainly takes place in the pandemic and post-pandemic world. In the pandemic time, everybody was maintaining their lifestyle online and the Grocery delivery apps took the position. And now after the pandemic, the buzz of mobile app development is ever more. So, the market is presenting multiple on-demand grocery delivery applications that help businesses earn sitting at home and customers to shop faster and easier.
Conclusion
So, these are the main factors on which Gorillas grocery delivery app fails. To not repeat these mistakes in your business read this blog thoroughly. In addition to that, if you also want to build a grocery delivery app then you need to connect with the best mobile app development company so that they can build you the perfect one. If you want to hire a mobile app development company in the USA then you can go for TechGropse.
For more details and other information about us, you can see the given details below. In addition to that, if you want an app like Gorillas Food then also TechGropse can help you out with our expertise in developing the best Mobile apps.
TechGropse’s Proficiency in Developing Your Own Grocery App
If you want an App Like Gorillas then you will need to hire a mobile app development company and when it comes to getting you the best application then nobody can beat TechGropse.
From TechGropse you can Hire developers In Hourly Basis so, that they can only build the best mobile apps. In addition to that, we have the world’s best developers to get you your customized app. Well, nobody can beat TechGropse when it comes to building the best mobile app or providing digital web solutions. Our expertise extends across various industries, and we ensure that we provide the most user-friendly and innovative solutions to our clients.
You can Hire dedicated developers from the TechGropse team who will provide you with the best app that will significantly enhance your services and it will boost your revenue. So, what are you waiting for? Contact us, and let’s embark on the journey of an on-demand grocery delivery app together.
Thanks for your time!
FAQs
Gorilla’s business model success depends on multiple factors but one of the major factors was the right time to open the platform. In addition to that, Gorillas also provides the products in just 10 mins that really impresses the customers to engage with them.
Pros of Gorillas Business Model: Cost-effective Creative Cons of Gorillas Business Model: Difficult to manage
Hello All,
Aman Mishra has years of experience in the IT industry. His passion for helping people in all aspects of mobile app development. Therefore, He write several blogs that help the readers to get the appropriate information about mobile app development trends, technology, and many other aspects.In addition to providing mobile app development services in USA, he also provides maintenance & support services for businesses of all sizes. He tried to solve all their readers’ queries and ensure that the given information would be helpful for them.
