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DoorDash, the largest food delivery group in the United States, is preparing to make its first investment in Europe by taking a stake in the fast-growing Berlin grocery delivery app Gorillas.
According to people familiar with the matter, Gorilla is seeking to raise hundreds of millions of dollars in new funds at a valuation of approximately US$2.5 billion, which is far below its original set price of US$6 billion. These people familiar with the matter said that DoorDash has expressed interest in joining the round of financing.
They said that the transaction has not yet been finalized, but may be completed later this month. As negotiations with investors continue, it is not possible to know the size of DoorDash’s shares.
Prior to the meeting, Gorilla Company faced protests over its treatment of deliverymen and warehouse workers and the departure of senior executives, which intensified criticism of its stern CEO Kağan Sümer.
Gorillas has raised more than US$300 million from investors including Tencent, DST Global and Coatue Management, and reached a valuation of US$1 billion in the latest round of financing in March. Some of these existing investors may participate in a new round of financing.
Spokespersons for DoorDash and Gorillas declined to comment.
According to data from Edison Trends, DoorDash has become the largest food ordering app for customers in the United States, with a market value of 58 billion U.S. dollars.
Its investment in Gorilla will be a rare case of DoorDash buying a minority stake in a similar business. In 2019, it acquired Caviar, a US food delivery company, for US$410 million in cash and stock.
This also marks another major move for DoorDash to establish business in Europe, especially in Germany. In May, the Financial Times reported that DoorDash has already started Ready to launch Its food delivery service in the country posted 15 job vacancies for the Berlin-based team.
Gorillas was launched in New York City in May and has expanded to more than 50 cities in Europe in recent months.
Provide fast delivery service for groceries and convenience items (such as Getir and GoPuff) Raised billions In this year’s venture capital funds, investors hope that as the economy reopens, the online ordering habits formed during the pandemic will continue to exist.
In the past year, several start-ups have emerged in the United States and Europe, which promised to deliver goods from small local warehouses or “dark shops” networks to customers’ homes in just 10 minutes.
The market has begun to consolidate. GoPuff has acquired Fancy, headquartered in the United Kingdom, and is reportedly in talks to acquire Dija, a similar startup founded by a former Deliveroo executive.The Financial Times reported earlier this year that DoorDash had discussed Potential investment Or acquire several European grocery delivery apps.
It is unclear whether DoorDash will include Gorillas as part of its investment in its own restaurant delivery service. In May, Uber partnered with GoPuff to provide its options in the Uber Eats app.
DoorDash’s interest comes from a series of problems faced by Gorillas Negative headline In recent months, including the protests in Berlin this summer. Some drivers complained about unfair dismissals and poor working conditions. Like most of its competitors, it is still at a serious loss. Customer data was leaked online after a violation in May.
In an interview last month information, Sümer-Bain’s former consultant-admitted that he took a “performance enhancer” while working at a previous startup, but stated that his drug use “is a thing of the past”. The two co-founders of Gorillas left the company earlier this year.