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- 29 June 2022
- Transport / Logistics Services
In its quest for profitability, Berlin based fast delivery company Gorillas is seeking new business with large scale clients such as Tesco and Alibaba.
Currently, Gorillas claim that a quarter of its 230 dark store customer fulfilment centres are profitable. It further claims that it will be operationally profitable within three months and profitable at group level within the next 12 months.
In taking on large scale clients like Tesco and Alibaba, so the fast delivery company can take advantage of their buying power and higher margins. They in turn will benefit from Gorillas’ technology and logistics infrastructure. In working with such firms, so the business might become more financially sustainable.
In its quest for profitability, co-founder Ugur Samut has admitted that the firm has had to make tough decisions around its operations in several European countries to cut costs.
As well as waning interest from investors, Gorillas has also faced macroeconomic headwinds such as inflation of food prices and a return to high street shopping by many former online shoppers who turned to online shopping in the pandemic. “We realised that we need to adapt, course correct and we have to do it fast, so there were really tough decisions,” says Samut. “Now the whole focus is actually going towards profitability.”
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