- 20 June 2022
- Transport / Logistics Services
Instant delivery startup Jokr, founded in the US in March 2021, has announced it is pulling out of the US market and is to focus on markets in Latin America.
Jokr’s last deliveries in the US were made this weekend. The news comes as part of a wider trend of similar businesses reducing their global footprint thanks to none achieving profitability and a challenging economic environment.
In a statement, Jokr CEO and co-founder Ralf Wenzel said the company decided to focus its resources on Latin America because that region is “particularly underpenetrated and underserved,” adding that the U.S. only accounted for about 5% of Jokr’s business.
“We greatly appreciate the hard work and commitment of our US team, and we don’t take this decision lightly,” Wenzel said. “However, the experiences in the US market have vastly benefited our core business in Latin America to appreciate customer demand and sensitivities at the highest level.”
At the same time, the instant delivery company is looking at whether to sell or close its nine US micro-fulfilment centres. It has 200 of these globally.
As with other instant delivery companies, Jokr grew quickly to achieve economies of scale. After launching in New York City it started operations in Europe and Latin America. It also raised $260 million in Series B funding that valued the company at $1.2 billion in December. It then rapidly fell from grace, closing its European business in April after failing to find a buyer.