As billions flow into a crowded online grocery market, a wave of consolidation could be on the way
Summary
LONDON — Start-ups promising groceries delivered to your door in a matter of minutes are the hottest craze for venture capitalists right now. Investors have poured billions of dollars into on-demand grocery delivery firms — some of which are barely a year old — after the coronavirus pandemic accelerated a shift toward online shopping. Meanwhile, in China, Xingsheng Youxuan raised a whopping $3 billion this year, the largest funding round for a grocery start-up to date. The craze has spread to Europe over the last year, with a host of grocery apps gaining traction by touting deliveries in 10-20 minutes: Getir, Gorillas, Weezy, Flink, Zapp and Dija, to name but a few. This week, Czech firm Rohlik — which offers two-hour shopping delivery — raised $120 million at a $1.2 billion market value.