TO DELIVER
delivery apps taking over NYC
COURIER LIFE, OCTOBER 22-28, 2021 7
the fi rst European startup
to achieve “unicorn status,”
raising more than $1 billion in
less than a year with the help
of investors including Coatue
Management, DST Global and
Atlantic Food Labs.
With warehouses dotted
across Europe, New York City
has always been “the biggest
prize,” said a Gorillas spokesperso.
“The grocery shopping culture
here is uniquely suited
for our business model, especially
when you consider how
frequently you see lines down
the street to get into the grocery
store,” the person said.
“NYC is a fast-paced city that
needed an on-demand delivery
service that could deliver
what New Yorkers need exactly
when they need them.”
The company made its fi rst
foray in the city in May, Dimini
said, making deliveries
in Bushwick and Downtown
Brooklyn. It has expanded
rapidly in the following fi ve
months, operating more than
11 warehouses citywide and
delivering to wide swaths of
Manhattan, Long Island City,
and Williamsburg, with plans
to open more in the coming
weeks — including one in
Prospect Lefferts Gardens on
Oct. 30.
“Each Gorillas warehouse
is strategically located to target
a specifi c neighborhood,
reaching a dense population,”
they said. “We only place a
warehouse if we feel fully confi
dent that we can deliver to
the specifi ed radius on time.
That said, larger neighborhoods
have two warehouses
if necessary, and customers
must physically be within
range of one at the time of ordering.”
When setting out for expansion,
JOKR used a tool
that broke down “the whole
world” by population density
and food and drink consumption,
Trerotola said, then
picked out the most attractive
markets. High population
density is critical for their
business model since each
hub delivers to such a small
area.
“We largely are targeting
young adults to young families,
I would say ages 23-40,”
Trerotola said. “People who,
at some point, need convenience
and speed in their life.
Anything from families who
are busy and don’t have the
time to cook for their children
to the young professional who
is trying to put together a recipe
and doesn’t have the time
to go grocery shopping for
that last minute ingredient.”
the spokesperson said Gorillas
endeavors to tap into local
knowledge to familiarize
themselves with a city and begin
community engagement.
“This process entails
thorough research into each
neighborhood we enter, from
as broad as the customer demographic
to as specifi c as
the busiest intersection in
the neighborhood, all for the
purpose of offering an assortment
of groceries that refl ect
the specifi c needs of a community.”
Business models
If the expansion of Fridge
No More, which started operations
in Brooklyn just a year
ago, is any indication, shoppers
won’t have to wait long
before they have their pick of
delivery apps.
The app, which raised
more than $15 million in
funding last April, now delivers
to nearly all of Manhattan,
from 143rd Street to
Thames Street, as well as
Long Island City, Astoria,
and Brooklyn neighborhoods
from Greenpoint to Prospect
Lefferts Gardens.
Both apps also carry products
from much-loved local
businesses. Customers buying
groceries from JOKR
can add Flatbush-based Justin’s
Nut Butter to their cart,
and Gorillas offers meat and
charcuterie from Brooklyn
Cured.
Neither app has a minimum
purchase threshold and
JOKR doesn’t charge a delivery
fee. Gorillas’ is nominal,
at just $1.80 per order.
Trerotola said JOKR’s
prices are comparable to a
traditional grocery store, if
not a little bit lower.
JOKR buys directly from
the source, Trerotola said, often
in bulk and at a discount.
With fewer overhead costs because
of the smaller footprint
of the micro-warehouses versus
a large grocery store and
more control over their stock
and food waste, he said, they
can pass on the money they
save to their customers.
“I think we set out, as any
startup does, with a fairly
aggressive roadmap on expansion,”
he said. “It was yet
to be seen whether this was
something that took off in a
city like New York where you
already have so many convenience
items.”
“To my shock, I think we’ve
grown faster than we ever expected.
The demand has outpaced
what we expected, and
I think it has really shown
there is a product market fi t
here, and that people do demand
more convenience in
this world, especially when it
comes to grocery shopping.”
Our next story in The Race
to Deliver series will include
comparison shopping between
these grocery store apps and
items sold at traditional grocery
stores and supermarkets.
One of the “Fridge No More” locations is on 4th Avenue in Park Slope,
Brooklyn. Photo by Gabriele Holtermann