Paris: Joseph Boyle and Collentin Dortrep, Glenn Chapman in San Francisco, Thomas Irvine in New York, and Cat Burton Platamesh Jasser in Seoul unload groceries and drive through the city of Berlin in just minutes after an order is placed. One of the many brightly dressed riders. A 25-year-old master’s student from Mumbai could be a child of a multi-billion dollar “quick commerce” poster, but instead he symbolizes fatigue.

“Working conditions are terrible,” he said, complaining that his employer, the Turkish startup Getir, could not provide safety equipment or management support and did not tolerate unionization. Worker dissatisfaction, reduced investment, and lower demand all suggest a hard landing from the growth of stars in the pandemic era.

Millions turned into grocery delivery companies during the pandemic blockade, and the company ate up billions of dollars in venture capital and other investments. But Getir recently announced that it would “heartily” dismiss 14% of the world’s workforce, or thousands of staff. Germany-based gorillas have fired 300 people, and French boss Pierre Guionin told AFP that it is a necessary step to “be stronger and more profitable in the long run.” However, the road to profitability suffers from potential pitfalls.

Capital flight

Hendrik Laubscher, an analyst at Blue Cape Ventures in South Africa, said: Getir reached a valuation of nearly $ 12 billion earlier this year, and US startup Gopuff was valued at $ 15 billion. However, rising inflation and slowing economic growth have fled investors from more risky technology investments, and many consumers are at risk of living costs. Small businesses like Fridge No More and Buyk are hitting the wall, and analysts say some of the remaining platforms are running out of cash in search of customers and may face a tricky future. I am saying.

According to a recent survey by McKinsey consulting firms, the surge in customer numbers could be over. Almost a quarter of Europeans using ultra-fast delivery will reduce or end their use of such apps. As competition intensifies and companies seek margins, online bulletin boards are flooded with complaints from staff on all major platforms, and a group of workers is beginning to emerge.

Prathamesh Jahar said his treatment was equivalent to exploitation. Other Getir workers in Berlin said they had a similar experience. “We reject all allegations,” a Getir spokesman told AFP, listing all the equipment and the support it provides to workers. He also rejected the anti-union label, saying, “The opposite is true. Getir Germany supports the efforts of employees to form a labor-management council.” Getir and Gorillas offered workers contracts and emphasized moving away from casual work associated with the gig economy.

Dark store

Another problem that has plagued the industry is the backlash against so-called dark stores. This is a city center warehouse that businesses use as a delivery hub. Both companies were able to buy stores cheaply during a pandemic, but the prospect of a closed warehouse taking over the shopping street was severely diminished by local governments in the United States and Europe.

The industry is looking for a solution. For example, Gopuff has begun opening some of its hubs to New York shoppers. Therefore, combative start-ups are essentially what they wanted to destroy. “What’s the difference if they’re just convenience stores,” said Blake Droesh, an analyst at Insider Intelligence. In addition, several companies have begun trading with large supermarket chains and are further integrated into the existing ecosystem.

“Marketing gimmick”

The future of the industry depends on whether people are willing to pay for ultra-fast delivery. Analysts and industry figures believe that business definitely has a future. “The way people move forward is to provide faster deliveries,” Droesch described himself as “bullish.” “That’s how Amazon got to the current situation, and they figured out how to get the products they need to people much faster than others.”

But some of the turmoil and revolutionary claims are “marketing gimmicks,” and Laubshire said the future is likely to be slower and less dramatic than promised. “I don’t think it’s really important if the item arrives in 10 to 20 minutes,” he said, explaining that 60 minutes is perfectly appropriate.

In support of his analysis, the Korean company Coupang has 9 million customers and runs a profitable business that operates services on the same day. With a larger basket and smaller promises, Coupang’s strategy could show its way to a more unruly Western cousin. Lee Seung-yeon, a 35-year-old office worker in Seoul, said, “I can’t imagine my life without Coupang.” “You don’t have to go home with heavy groceries, it’s cheap.” – AFP

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