Gorillas, the ultra-fast delivery operator from Germany, plans to make its US debut in New York City this month

Gorillas warehouse
Gorillas fulfills grocery orders from a network of “dark” warehouses. The German startup has announced plans to enter the US market.

  • The on-demand grocery delivery startup will launch its service in Brooklyn using bike couriers.
  • Goods such as fresh produce, milk, and cat litter will be delivered in under 10 minutes.
  • ‘We are in love with the model,’ CEO Kağan Sümer told Insider in an exclusive interview.
  • See more stories on Insider’s business page.

The red hot on-demand grocery delivery war is about to intensify with the US debut of European startup Gorillas this week.

The ultra-fast delivery operator based in Germany told Insider that it plans to kickstart its 10-minute delivery service in select Brooklyn neighborhoods starting May 30. They’ll be competing directly with Fridge No More, a startup that delivers groceries within 15 minutes to parts of the New York City borough.

Read More: NYC’s Fridge No More specializes in 15-minute grocery deliveries using scooters.

Unlike grocery-delivery operators Instacart, DoorDash, and Uber, Gorillas does not rely on gig workers to fulfill deliveries. Instead, it employs a fleet of bike couriers who deliver goods from strategically located “dark” warehouses.

The delivery fee in the US will cost $1.80 with no minimum purchase required. Consumers can order one item or a basket of goods. However, there are some weight limitations as groceries are delivered by bike. Each warehouse will hold about 2,000 to 2,500 items ranging from fresh produce and milk to cat litter.

“We are in love with the model,” CEO Kağan Sümer told Insider in an exclusive interview. “So if this model is executed the right way, it is going to be transformative in a big way.”

Gorillas employs bike couriers to delivery goods.

Depending on the neighborhood, Gorillas’ delivery choices will also include artisan foods from local businesses. In Brooklyn, Gorillas will carry bagels, ice cream, and chocolate truffles from Black Seed Bagel, OddFellows Ice Cream Co., and Fine and Raw, respectively.

On US launch day, the warehouses in Brooklyn will support the following neighborhoods: Bushwick, East Williamsburg, and parts of Downtown Brooklyn including Boerum Hill, Cobble Hill, and Carroll Gardens.

In the coming weeks, Gorillas said it plans to “expand quickly” to other parts of Brooklyn, as well as neighborhoods in Manhattan and Queens.

“We are also eyeing other urban markets and you can expect to see Gorillas launch in other East, Central and West Coast cities by the end of the summer,” a company spokesperson told Insider.

Fridge No More also announced plans to expand beyond Brooklyn after its $15 million Series A funding round earlier this year.

Gorillas, which launched in June 2020, has more than 80 warehouses in 25 cities in Germany, the Netherlands, UK, and France. It plans to expand to Italy later this month, as well.

In Europe, Gorillas competes with Berlin-based Flink, Turkish delivery service Getir, and 10-minute delivery service Dija. Gorillas raised $290 million in a Series B round in March led by hedge fund Coatue.

A highly contested US grocery market

Gorillas enters a crowded US space where multiple e-commerce players like Instacart and startups like Gopuff are competing for market share. These services erupted over the past year as consumer adoption of online ordering accelerated during the pandemic.

Online grocery sales grew 54% in 2020, reaching nearly $96 billion, according to eMarketer. The segment is projected to surpass $100 billion in spending this year.

Instacart is dominating the space and saw huge growth during the pandemic, according to market research firm 1010data. The firm, which analyzes consumer behavior, said Instacart saw a 323% surge in year-over-year sales in 2020.

Read More: Here are the 13 companies competing for dominance of the $100 billion grocery industry.

Still, with business restrictions easing in the US, the meteoric growth of online grocery orders appears to be slowing.

Edison Trends, which tracks online grocery transactions, said e-commerce grocery spending was up 88% in February 2021, compared to February 2020. In March, overall spending increased by just 37%.

This, however, doesn’t concern Sümer. While some consumers will return to “traditional” in-store shopping, Gorillas is betting more people will stick to online grocery shopping because they’ve grown addicted to fast delivery services.

“These people adapted, tasted this convenience, so they will want to keep on,” he said.

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I tried Walmart’s grocery pickup and now I’m never going back to shopping in store

Walmart grocery pickup
  • I started using Walmart’s grocery pickup service last summer.
  • I order through Walmart’s app and pickup groceries at my nearest location.
  • It’s my preferred way to shop now, and I have no plans to stop using it.
  • See more stories on Insider’s business page.
Curbside pickup got a major boost because of the pandemic as customers avoided going into stores.

walmart black friday
A Walmart on Black Friday.

Experts predict that the shift to online grocery delivery will continue even as the pandemic subsides, and COVID-19 advanced the industry several years.

Walmart grocery pickup
eople talk outside a Wal-Mart Pickup-Grocery test store in Bentonville, Arkansas, June 4, 2015.

Source: Insider

I’ve been doing curbside pickup at Walmart since the summer using Walmart’s app. Here’s what it’s like.

Walmart Grocery pickup app

When you open the app, it prompts you to choose your nearest location for pickup, or add your address for delivery.

Walmart Grocery pickup app

The time slots come in hour-long blocks. At the beginning of the pandemic it was hard to find a spot, but now I rarely need to book more than a day or two in advance to get my choice of time.

Walmart Grocery pickup app

Once you’ve selected a time, create your list. The app is organized into sections that change seasonally, like spring produce, but you can also search for items or look through past orders.

Walmart grocery pickup

See what’s available, and get suggestions for similar items to picks that are out of stock. Just add enough items to hit the $35 minimum and pickup is free.

Walmart grocery pickup

Once your order is created, you have until about midnight the night before to continue adding to your list. For me, this is one of the most useful features, because I almost always realize we need something else before it’s actually time to pick up groceries.

Walmart grocery pickup

A few hours before pickup, Walmart will send a text notifying you about any substitutions or weight adjustments on produce.

Walmart grocery pickup app

I’ve always had good experiences with substitutions that are nearly identical to what I ordered, at the same cost.

Walmart grocery pickup app

Once you accept or reject any substitutions, the shoppers start preparing your order.

Walmart grocery pickup app

You’ll also get a text letting you know your order is ready for pickup.

Walmart Grocery pickup

Check-in on the app when you leave home so Walmart has an estimate of when you’ll arrive.

Walmart grocery pickup app

A side area of the parking lot was marked for grocery pickup. When you pull into a spot the app knows you’ve arrived and prompts you to enter your spot number and color of your car.

Walmart grocery pickup

My Walmart has about ten pickup spots. I’ve occasionally had to wait, but the process usually moves quickly.

Walmart grocery pickup

Walmart shoppers use small carts to pull crates with grocery orders.

Walmart grocery pickup

Masked shoppers come up to the driver’s window to double-check the name on the order with a handheld tablet that they carry.

Walmart grocery pickup

Then, groceries get loaded into the trunk.

Walmart grocery pickup

Shoppers will usually bag groceries in your reusable bags if you bring them, but I usually just ask them to load groceries into my trunk to save time and bag them myself at home.

Walmart grocery pickup

Sometimes they are more organized in my trunk, but as long as eggs and anything else with the potential to get crushed is supported, I’m happy. I’ve never had any issues with this.

Walmart grocery pickup

At first, I was unsure about using a grocery pickup service, but now I’m never going back. I love the convenience, especially because I can add things to my order over several days and have them all ready and waiting for me.

Walmart employee curbside pickup

I also find I avoid overspending on impulse purchases because I’m browsing aisles where I don’t need anything, and I avoid purchasing too much of staples because I can look at my pantry as I shop.

grocery list

I see why online grocery orders have exploded over the last year, and I have no plans to go back to shopping in-store on a regular basis.

Walmart grocery pickup

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

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A guide to Amazon Fresh, the online retailer’s grocery pickup and delivery service

senior ordering grocery delivery tablet kitchen
Amazon Fresh, much like Instacart, is a grocery delivery and pickup service.

  • Amazon Fresh is a grocery pickup and delivery service that lets you order groceries using the Amazon app or website.
  • To use Amazon Fresh, you need to live in one of the cities in which the service operates, have an Amazon Prime membership, and request an invitation.
  • Amazon Fresh offers free deliveries for orders of $35 or more in select cities.
  • Visit Insider’s Tech Reference library for more stories.

Amazon may have begun as an online bookstore, but the retailer quickly scaled up to sell all manner of housewares, electronics, media, clothing, and more – today, there’s virtually no product category it does not sell.

What to know about Amazon Fresh

Case in point: Amazon Fresh is Amazon’s grocery pickup and delivery service, currently available in nearly two dozen US cities and some international locations. Using the Amazon Fresh website or the Amazon mobile app, you can place a grocery order online and have it delivered to your door or visit the store and pick up the completed order.

In general, most things you can find walking the aisles of a grocery store you can find and order through Amazon Fresh. That includes meats and deli items, fresh fruit and vegetables, canned foods, prepared meals, and more. The exact inventory of grocery items available for purchase will depend on your local area, though, since the products come from local stores that Amazon has partnerships with.

What_is_Amazon_Fresh 1
You can use the Amazon app or website to place Amazon Fresh grocery orders.

How to get Amazon Fresh

Amazon Fresh isn’t available everywhere. Because of the nature of the service, in which Amazon must nurture relationships with local stores, it’s available in more than a dozen US cities, including Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Houston, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Philadelphia, San Diego, San Francisco, Seattle, and Washington DC. To find out if it’s available near you, enter your zip code at the Amazon Fresh website.

In part to control the growth of the service and ensure Amazon can maintain adequate service quality standards, Amazon Fresh is currently available by invitation only.

Amazon Fresh is available only to Amazon Prime members, so you will need to start with that membership, which has a standard cost of $119 per year (for more information, see our guide to the costs and benefits of Amazon Prime). You are considered eligible if you have an Amazon Prime, Amazon Prime free trial, and Amazon Prime student membership. If you only have an Amazon Prime Video membership, though, you are not eligible.

If you have an Amazon Prime membership, you can request access to Amazon Fresh at www.amazon.com/fresh. In most cases, you will probably not need to wait long for approval.

How much Amazon Fresh costs

Aside from the required Amazon Prime membership, the Amazon Fresh service itself has no ongoing subscription cost. It’s free.

Depending on the cost of your grocery order, though, you might need to pay a delivery fee. Orders under $35 have a variable delivery fee of up to $10, while $35 or more are delivered free. Some cities have a higher cap on free delivery; in New York, for example, you need to place orders over $50 to get free delivery.

How does HelloFresh Work? Here’s what you need to know about the meal kit delivery serviceHow to cancel your HelloFresh account and avoid getting chargedHow does Instacart work? What to know about the grocery delivery service powered by freelancersHow to cancel an Instacart Express membership if the grocery delivery service no longer fits your needs

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