Fast grocery apps face slowdown as lockdowns end

STORY: Fast grocery apps boomed while consumers were stuck at home.

Lockdowns helped drive growth for services that promised to deliver shopping within minutes.

But now consumers are out and about again, and the sector faces tougher times.

In Europe, analysts say only a few will survive in each market.

Turkey-based Getir - the biggest and oldest such service - is cutting jobs.

14% of staff will go.

Jobs are also being cut at Germany’s Gorillas, and UK-based Zapp.

Some firms are already disappearing, with London’s Jiffy ceasing operations last month.

Analysts at Citi estimate that seven or eight smaller outfits have been forced to seek buyers or cease operations.

Competition from takeaway food apps hasn’t helped.

Uber Eats and Just Eat Takeaway have both pushed into the grocery delivery market.

Acquisitions should see the sector emerge with a smaller number of bigger players.

Germany’s Delivery Hero has already agreed to take a controlling stake in Spain’s Glovo, which is valued at $2.6 billion.

Flink has bought France’s Cajoo for an undisclosed sum.

Fast deliveries are here to stay, it seems, but shoppers may soon have fewer apps to choose between.

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