DoorDash Prepares For Investment In Grocery Delivery App Gorillas

U.S. food delivery group DoorDash is ready to make a new investment in Berlin-based grocery delivery app Gorillas, the Financial Times (FT) reported.

Gorillas’ goal is to make hundreds of millions of dollars in new funding at a valuation of $2.5 billion, according to FT. That amount is far lower than the $6 billion the company initially wanted to raise, and DoorDash has expressed interest in joining the round.

Gorillas was rolled out in New York City in May, FT reported. Since then, it has expanded to over 50 cities and has followed a similar trend as many other adjacent companies which have promoted rapid delivery services, including GoPuff and Getir, which have raised billions of dollars in venture capital. Investors are hoping the online ordering habits that have grown during the pandemic have legs to continue.

Gorillas has run into issues as of late, as it has recently faced protests over the way it treats its delivery riders and warehouse workers, according to FT. Riders have complained about unfair dismissals and poor working conditions. There have also been several senior executives who have left the company, which has seen revenue losses.

The issues have led to critiques of CEO Kağan Sümer, who is a former Bain consultant and has admitted to taking a “performance enhancer” at a previous job, FT reported.

In July, PYMNTS reported that Gorillas Chief of Staff Ashwin Wadekar said there would be a sustained demand for grocery delivery.

Read more: Gorillas Aims To Bring eGrocery Into The Future With Lightning-Fast Delivery

“What began as an early adopter trend pre-pandemic and suddenly became a necessity as lockdowns hit has now turned into something that consumers see as customary when it comes to their grocery shopping experience,” Wadekar told PYMNTS.

The company has micro-warehouses in every neighborhood it serves — sometimes two — and all of them are staffed with employees, which the company theorizes could build trust.