There are other rapid- delivery apps that have been affected. Turancan Salur, Getir's general manager in Europe, says, "Rising inflation and the deteriorated macroeconomic outlook around the world have pushed all companies to adjust to the new climate."
According to Gevaers, companies like Getir planned to burn a lot of cash by buying up market share. At a certain point, it's not your business but your clients that are interesting. Many of the Getir stores in Turkey are profitable because of the business model.
The country's labor rules give workers on full-time contracts at least four months' pay as compensation if they lose their job. According to a company statement, some office workers have been hired by a Belgian food delivery company. The company refused to give more information.
In Spain, employees of the gorilla company are watching their Belgian colleagues. The Spanish subsidiary has a limited amount of time to find a buyer or investor. Roughly 300 workers in the country have been given official notice that they are going to be laid off.
The app continues to operate, but management is encouraging staff to look for new jobs, according to an employee who works in the Madrid office. The number of orders per warehouse has fallen due to lack of new products. They wait until they run out of stock. Spain's labor laws are not as generous. There will be a minimum of 20 days of pay for workers who face redundancy. The agreements with individual employees were not commented upon.
The branch is trying to find a buyer or cash injection as it waits to find out its fate. It has struggled to hit sales targets over the past year according to an employee who asked to remain anonymous. The districts were beset with staffing problems, with the internal Slack channel regularly featuring managers' pleas for help because not a single bike-courier turned up to work, they say. The specifics of its day-to-day operations were not commented upon.
Gig companies employing their staff on permanent contracts aren't viable ifGorillas' exit creates the impression that they aren't viable "Many of us are going back to work for platforms that don't hire riders as employees." At a time when some have decided to leave the market, Deliveroo believes in quick commerce and flash deliveries in Belgium. Riders in the country are self-employed.
According to the company, its operations will be profitable in three months and it will be profitable at a group level in a year. The economics of delivery apps don't add up, that's what the departure of Gorillas raises for analysts. As these companies have raced to dominate large cities, they have taken some questionable shortcuts. He says that businesses have been built without a clear path to profitability. Customer satisfaction is not good in most countries. He says that the 10 minute or 15 minute delivery claim creates a huge expectation of service that is often disappointing. In December, Gorillas stopped making deliveries in 10 minutes from its website.
Kamel says the market has told start-ups to find a path to profitability and be better retailers if they want to stay in business.
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