Gorillas Scraps 10-Minute Grocery Delivery and Tweaks Business Model

Gorillas, the rapid-delivery startup, no longer promises 10-minute deliveries, Insider has learned.

The startup plans to offer in-store pickup from 18 warehouses in New York beginning on February 26.

The news follows reports that a New York lawmaker wants to ban advertising for 15-minute delivery.

The delivery unicorn Gorillas has quietly tweaked its speedy-grocery e-commerce model in New York City, Insider has learned. The moves come as ultrafast startups are facing increasing competition and scrutiny from lawmakers.

As of a few months ago, the German ultrafast startup, which launched in New York last spring, stopped promoting its business as a 10-minute delivery service. Instead, the company is advertising delivery "within minutes" to reduce pressure on its fleet of New York City bike couriers.

The average delivery times in New York hover around 15 minutes depending on the day and time, the company told insider. "We have never favored fast delivery at their risk, which is why we opted to update our promise to offer delivery in minutes rather than in a specific amount of time, shortly after launch last year."

The elimination of Gorillas' 10-minute-delivery marketing applies to the more than 60 cities that the Berlin-based company operates in, including Amsterdam, London, Paris, Madrid, Milan, and Munich in Europe and New York in the US, the startup said.

The changes at Gorillas coincide with New York City Council member Christopher Marte's plan to introduce legislation to prohibit grocery apps from advertising 15-minute delivery. The proposed bill, first reported earlier this week by the New York Post, aims to strengthen protections for delivery couriers working for ultrafast startups.

Additionally, Gorillas is launching a campaign later this week to inform New York customers that its brick-and-mortar "dark stores" are available for free grocery pickup.

New York officials have also previously expressed concerns about rapid-delivery apps competing with existing supermarkets and neighborhood bodegas.

"We are still in the very preliminary stages of introducing legislation but are looking to address the labor concerns with these companies, as well as their impact on New York's beloved bodegas," a spokesperson for Marte said in an email.

Gorillas to launch in-store pickup as 'dark stores' get a makeover

Gorillas is set to launch free, in-store pickup from its 18 New York stores this week, the company confirmed. As part of the move, Gorillas is making a few design tweaks to make stores more inviting for walk-in customers.

The startup's retail storefronts, like most of its New York rivals, are covered or "wrapped" in marketing materials, giving them the appearance of being closed to the public.

Gorillas is removing the wrapping from windows starting on February 26, beginning with a store on the Lower East Side. The location is set to be outfitted with a waiting lounge and shelving for pickup orders. Walk-in customers would also be given a code to waive delivery fees when ordering their groceries on the app.

"We want to meet our customers where they are and provide an omnichannel grocery experience," Adam Wacenske, the head of operations for Gorillas in the US, said in a statement. "This means giving them the opportunity to order from anywhere and receive groceries within minutes, including when they're walking by the store and want to get their groceries in person."

Gorillas said customers were technically always allowed to walk into stores and pick up groceries ordered using the Gorillas app. But until this week, the company didn't promote the walk-in service — a common trend in the industry.

Other ultrafast delivery companies like Gopuff, Getir, and DoorDash (through DashMart) also offer in-person pickup options.

"Anytime we can give our customers more options to use our product gives Gorillas an edge," Wacenske said.