Grocery Delivery Startup Jokr Explores Sale of European Business
Grocery Delivery Startup Jokr Explores Sale of European Business
(Bloomberg) -- Rapid grocery delivery startup Jokr is exploring a sale of its smaller European business as it focuses on expanding into the U.S. and Latin America, according to people familiar with the matter.
New York-based Jokr, which launched in March and recently raised $260 million at a $1.2 billion valuation, is among a spate of firms seeking to bring consumers fresh produce and other goods within 15 minutes. The company had set up operations in the Americas, alongside a small European presence that it’s now exiting.
In Europe, Jokr has more than 20 micro-fulfillment centers and an annual revenue run-rate surpassing $5 million, according to a document seen by Bloomberg. The company has operations in Austria and Poland.
“Jokr was born in Latin America and quickly scaled into the United States. In both markets Jokr has generated strong sustainable growth in a very underpenetrated environment and with a huge underlying market opportunity, which Jokr wants to now exclusively focus on,” a company spokesman said by email, declining to comment on specific numbers.
“Europe is a smaller and more fragmented market. It has been a small part of Jokr’s business, and we are currently exploring other strategic alternatives,” the spokesman added.
Jokr Chief Executive Officer Ralf Wenzel said last week that the company wants to focus on expanding in its current markets such as the U.S., Brazil, Mexico, Colombia, Chile and Peru. In New York, the company faces competition from the likes of GoPuff and now DoorDash Inc., which is rolling out a rapid grocery service in the city.
Venture capitalists have poured billions of dollars into the quick commerce sector, but there are early signs of consolidation amid the high costs and crowded competitive landscape.
Europe’s quick delivery landscape counts well-funded competitors among its ranks such as DoorDash-backed Flink SE, Getir and Gorillas Technologies GmbH. Some startups have already begun to make deals, with Gopuff and Getir acquiring smaller rivals in the U.K.
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