Operating in the on-demand sector is Berlin-based grocery delivery unicorn Flink, which sells food and other supplies at supermarket prices and promises delivery in under 10 minutes. Recently Bloomberg reported that Flink has secured €100 in funding to extend its runway and try to outlast its competitors.
This round comes at a time when the grocery delivery sector is facing higher costs and lower demand, according to the report. Though the sector picked up growth during the pandemic, only a few such startups are active in Europe and many struggled with low margins, high acquisition costs and competitors, it adds.
Previously, Flink raised $750M in a Series B round led by DoorDash at a $2.1 billion valuation. In 2022, it acquired a competitor, Cajoo, in a move that gave it access to the French grocery chain Carrefour and an opportunity to grow in France.
On-demand grocery market in Europe
The battle for online food and grocery delivery supremacy has recently been fought in Europe, particularly in Germany. In 2022, rival delivery company Getir was in discussions to buy Flink but it bought German firm Gorillas for $1.2 billion later in the year.
Getir aimed to dominate the rapid grocery delivery sector, which saw a surge in demand during the pandemic. After acquiring Gorillas, it focused its operations in five countries: Turkey, the United Kingdom, Germany, the Netherlands, and the United States. In 2023, the company acquired FreshDirect with ambitions to grow in the United States.
Focuses on quick delivery
Flink, launched in 2020 by Oliver Merkel, Julian Dames, and Christoph Cordes, is one of many European delivery applications that promises to deliver fresh goods to customers’ doors in minutes. It has collaborated with large merchants and rely on them for those agreements, rather than trying to grow up to have the best negotiating leverage for buying in goods.
Flink’s goal in growing has been to keep the concept of quick food delivery as normal as possible and make it available to as many people as possible, not simply young urbanites with discretionary income.
