The Race to Deliver
apps taking over NYC
to have somewhat of an overlap on these
polygons.”
JOKR launched in New York City in
June with four hubs, and have since expanded
to ten, delivering to Williamsburg,
Long Island City, all of Manhattan below
35th Street, Midtown East, the Upper
East Side and the Upper West Side. The
company expects to open an additional ten
hubs before the end of the year.
Started last spring by German entrepreneur
Ralf Wenzel, the founder and CEO
of FoodPanda and former partner of Soft-
Bank, JOKR had raised more than $170
million by July from fi nanciers including
Tiger Global and GGV Capital.
Gorillas in the midst
Gorillas, a Berlin-based app launched
in June 2020 by Kağan Sümer, quickly
became 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 spokesperson
via email.
“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 spokesperson 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, 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,”
said the representative. “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.”
JOKR delivery rider Chris gets on his way to drop off some groceries.
Gorillas endeavors to tap into local
knowledge to familiarize themselves with
a city and begin community engagement,
their spokesperson said.
“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
THE RACE
TO
DELIVER
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.
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