As billions flow into a crowded online grocery market, a wave of consolidation could be on the way
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.
Venture-backed grocery companies have already raised over $10 billion so far in 2021, according to data from Pitchbook, eclipsing the $7 billion raised by such firms last year.
In the U.S., Instacart was valued at $39 billion in a March funding round, while Gopuff raised funds at an $8.9 billion valuation. 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.
