In the midst of the pandemic, startups like Gorillas and Flink entered the market out of the blue, building a dense network in major cities in Germany and beyond, hiring hundreds of distributors and promising to deliver fresh produce and groceries from supermarkets in the shortest possible time. a few minutes home. All you had to do was open the app and select your desired products at supermarket prices. Demand skyrocketed during the coronavirus crisis and investor returns were huge. However, the success of the last two years has begun to wane as the measures are lifted. So-called “fast shopping” has overtaken retail in 2021, notes Kai Hudetz, managing director of the Cologne Institute for Retail Research (IFH), in a related report by Deutsche Welle. “But even then, one had to wonder if actually delivering yogurt to the office within 15 minutes could be a viable business model in the long run,” he adds.

Of course, the war in Ukraine and inflation have not escaped the attention of this sector, which made investors hesitate. Many product distribution companies that rely on vertical growth are struggling. For example, Berlin-based startup Gorillas announced just a few months ago that it was cutting hundreds of administrative positions and recently left several distribution cities in North Rhine-Westphalia. Its competitor, Wolt, has focused mainly on food delivery from restaurants. The pressure from competition is huge due to the large number of companies in the market, and keeping warehouses for products is very expensive. Added to all this is the self-confidence of the workers, who are continually succeeding in their struggle for better pay, safety and better working conditions, and higher prices. “Now, due to shipping costs, shoppers walk the 300 meters to the supermarket themselves or order from a cheaper app,” says Mr Khudets. Of course, the opportunities available to companies are actually minimal. Flink now only offers free shipping on purchases over €50, although not all companies promise delivery within 10 minutes. However, as Deutsche Welle points out, the supply may not disappear completely, as the growth potential in this industry remains huge. Finally, according to the German Retail Association (HDE), food sales in this sector amounted to 204 billion euros last year, while online sales accounted for only 2.4% of the total.