Jun 19, 2023

The brutal truth of the rapid grocery delivery industry, however, is that it was impossible to become profitable delivering groceries in 10 or 15 minutes, Ladd argued. For that reason, he stated that this was the worst business model ever created. Ladd continued: “I encouraged the entire rapid grocery delivery industry to slow down in order to become profitable. Make deliveries in 30 minutes vs. 10.” “My argument to Kagan and other executives in the industry was that if they can at least break even delivering groceries, they can certainly become profitable delivering higher margin retail products and pharmaceuticals.” “As I state in the movie: Consumers will begin to ask, why is it I can get my groceries in 10 or 15 minutes, maybe 30 minutes, but I can’t receive apparel, shoes, handbags, cosmetics, and other products I want to order?” “If consumers do ask the question, and if Gorillas can continue to raise capital, it will be in a unique position to partner with retailers for rapid delivery for much more than groceries. If it doesn’t happen, Gorillas will die.” In 2021 and 2022, Ladd was an advisor to Instacart. “My argument to Instacart was don’t get into the rapid grocery delivery business. Period. However, if you do get into the business, do it by making an acquisition.” “I personally spoke with Fridge No More, Buyk, and Getir about being acquired by Instacart. FNM and Buyk didn’t want to be acquired. Bad idea. Nothing came of the discussion with Getir.” Gorillas reached out to Instacart on its own but was unable to make a deal. Instacart created its own rapid delivery service, but this failed to impress. Ladd concluded: “Nearly all of the rapid grocery delivery companies have failed as I stated would happen. A few are in the process of dying.” So, what’s the moral of the story of Gorillas? Should Sümer have launched it? Ladd believes he should have. “The worst thing we can do as humans is crush ambition and thinking BIG. Gorillas didn’t succeed. Mistakes were made. Lessons have been learned. But it was a hell of a ride.” As for Sümer, “I hope he keeps his same spirit and drive. I wish him nothing but happiness and success. If Kagan starts another company, I hope he calls me. I’ll gladly work with Kagan…but I want to control the money.” Featured