- 23 August 2021
- Transport / Logistics Services
As the US within-the-hour delivery giant reportedly eyes up a European launch, Doordash has pulled out of negotiations to buy a large stake in German within-the-hour delivery firm Gorillas.
Doordash is reported to have been preparing to invest $400m into Gorillas but the deal collapsed within a few days. The investment would have valued the German delivery firm at $2.5 billion, far lower than its own $6bn valuation.
The UK Telegraph newspaper understands that a letter of intent had been agreed between the two companies but when Gorillas became known to have sought a higher investment from rival bidders Doordash is reported to have pulled the plug on the deal. Neither firm has commented on what happened.
Gorillas is one of the best known global 10-minute-delivery companies having recently begun operations in the UK and US. It operates with a network of dark stores within a short range of its target customers.
The firm has made waves lately with rider strikes in Germany and has been known to have burned through large sums of venture capital as it expands rapidly. Despite only being launched in 2020, it has lately had $290 million of venture capital invested into it, long before it becomes well established.
Doordash is well established in the US and is known to have been hiring a large number of staff in Germany with a view to launching there soon. There is speculation it could expand into the UK too, soon.