Inside the economics of 10-minute grocery delivery startups, which eke out higher margins with pricier convenience store goods and less choice

Posted On: May 11, 2021   |   Posted By: Business Insider

Inside the economics of 10-minute grocery delivery startups, which eke out higher margins with pricier convenience store goods and less choice

Summary List Placement Walk around parts of central London right now and you'll spot outdoor ads for an array of new startups promising grocery deliveries in 10 minutes or less.
Insider has spotted ads over the last week for Getir, Weezy, and Gorillas. Others also operating in the UK capital include Dija and Zapp. All are trying to out-compete each other in various European cities for customers.
These ads have ballooned in volume over the last three months, funded by an influx of venture capital cash into the sector.
The apps are also pushing a slew of money-off deals that give savvy users the opportunity to buy £15' worth of groceries for as little as £1 .
Startup investors have been fighting to invest in these firms , meaning they are already valued in the hundreds of millions, or even billions, of dollars despite being only weeks or months old in some instances.
According to data compiled for Insider by Pitchbook, venture capitalists have plowed $1.6 billion into grocery delivery startups in...

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