The joke’s on grocery execs as Jokr and other new entrants power ahead

Far too many grocery executives have failed to understand the threat that Jokr poses to their business, according to Brittain Ladd, a former Amazon exec and supply chain consultant.

The rapid grocery delivery startup recently closed a $170 million Series A funding round, three months after the company started operations in the US, Latin America and Europe.

Led by GGV Capital, Balderton Capital and Tiger Global Management, the funding will allow it to enter new cities and expand in current locations, including its home base of New York City.

Rapid grocery delivery startup Jokr has closed a $170 million Series A funding round, three months after the company started operations in the US, Latin America and Europe #retailtech #startups https://t.co/rrKXksP4qO
— Retail Technology Innovation Hub (@RTIH_RetailTech) July 21, 2021

“We continue to build Jokr into the premier platform for a new generation of online shopping, with instant delivery, a focus on local product offerings and more sustainable delivery and supply chains,” said Ralf Wenzel, Founder and CEO.

“We are proud to be able to partner with such a distinguished group of international tech investors to help us seize the enormous opportunity in front of us.”

“Delivering groceries in 15 minutes is viewed as only being possible in New York City as one grocery executive recently told me. False,” Ladd said in a LinkedIn post.

“I was correct when I stated in 2018 that the need to increase delivery speed would usher in the use of manual and automated micro-fulfilment centres. It’s happening as I write this.”

France, he noted, is actively investing in making Paris a city where everything a consumer needs is within 15 minutes of their residence etc. Many cities in the US will also move to such a model, Ladd believes.

“The grocery industry is going to see massive disruption through the 2020s,” Ladd continued.

“In addition to the growth of rapid grocery delivery, I believe we will see increased consolidation in the grocery industry. For example, Albertsons and Ahold Delhaize merging, or Target and Kroger merging.”

In addition, Instacart will have no choice but change its business model by offering micro-fulfilment as a solution, whereby they open automated micro-fulfilment centres to fulfil online grocery orders to reduce costs and increase speed to their customers.

Ladd added: “I also anticipate that Instacart will become a grocery retailer selling direct to customers. DoorDash and Uber have the potential to become major players in groceries.”

“Gopuff will become more valuable and a highly sought after acquisition target. Instacart, DoorDash, Uber and Amazon are the companies I believe looking the hardest at acquiring GoPuff. 7-Eleven or Dollar General is who should acquire GoPuff asap.”

The era of 15 minute delivery

Jokr wants to usher in the era of 15 minute delivery for nearly everything. Many grocery execs doubt it will succeed in this. But then few people thought Amazon would succeed when it launched, Ladd argues.

“Can Jokr become the next Amazon? That remains to be seen. What’s certain is that Amazon’s business model isn’t bulletproof. Any company can be disrupted, even Amazon.”

In the meantime, Ladd believes we should keep an eye on Jokr, whilst also not overlooking the fact that Gorillas, Flink, Getir, Delivery Hero, and others are also offering 15 minute grocery delivery, and each will soon be operating in the US.