Gorillas is closing its business in Italy and leaving its employees at home. The German startup, which has become one of the most used home grocery delivery apps in the world in a few months, has announced that it will focus on more profitable markets. In Italy it was present in 5 cities: Rome, Turin, Milan, Florence and Bergamo. Here he employed 540 people, of whom 75 were permanent contracts (including directors) for which he began mass dismissal procedures, union sources assure Italian Tech.
Gorilla success during the pandemic
Founded in Germany in May 2020, right after the Covid-19 pandemic, Gorillas has had one of the most exciting success cases for a startup in the era of lockdown: through an app, it allowed its users to order shopping and get it at home in ten minutes. In just a few months, it raised $1.3 billion, reaching a record valuation of three billion a year and six months after its founding. Funds that allowed it to launch an international expansion strategy, which saw thousands of people employed in Europe and the United States. But after reopening first, inflation and the war in Ukraine changed the picture.
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The company has not raised, after the last investment round last October (one billion dollars), its new capital. New capital is necessary for these companies if they are to continue to stand out and pay the massive operating costs that a strong market takeover requires.
The crisis of reopening, inflation and changing the macroeconomic framework
Gorillas announced last May that it would cut its staff to cut costs. The company said it will now focus on Germany, France, the United Kingdom, the Netherlands and the United States, “in order to boost growth in the key markets from which it has derived the most revenue (90%),” it wrote. in a report. note. The gorilla arrived in Italy just over a year ago.
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The company announces that it has evaluated various alternatives and is still “carefully evaluating” such as selling the company or entering new investors. A tangible level is like assuming a good result.” Hence the decision to “start a gradual process of closing business in Italy”.
Trade unions were the first to denounce the company’s plans. Gorillas, along with other food delivery companies, have agreed to apply the National Logistics Workers’ Collective Agreement to delivery workers. “This decision has important implications for our Italian team, who have already been informed of our plans for the market, and in connection with which we have started the procedures required by law and collective union consultation agreements, in preparation for the separation of the entire workforce.”, concludes the note.
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