British delivery app Zapp has increased its $ 200 million subsidy cycle to increase fuel outside of its London and Amsterdam locations. The London-based startup has now raised more than $ 300 million for investors betting on a corner store, or bodega, which, basically, will put you ahead of a set of startups that want to deliver groceries in ten minutes across Europe.
“We do not want to introduce 100 cities around the world, it is better to focus on cities where there is a strong consumer culture about convenience, and where we can build infrastructure like our distribution center in London,” Falter said. “We need to know that there are customers who value our service and are willing to pay for it.”
Zapp co-founder Joe Falter said the app plans to expand to new “big cities” such as London, or Amsterdam, where there is a need for cyclists who ship beer, snacks, and more expensive items such as iPhone chargers. The focus of Falter and his founder Navid Hadzaad in a few areas has compared rivals Getir, Gorillas, and Flink who have rushed to expand into new cities and European countries over the past 18 months.
The round was led by Lightspeed Venture Partners, 486 Capital, Broadlight Capital and was joined by Formula One driver Sir Lewis Hamilton. The program had previously raised about $ 100 million for existing investors but this included part of the European capital rivals Getir, which attracted $ 1.1 billion in funding last year, while the Gorillas drew $ 1.2 billion over the same period.
While Zapp is focused on the London home market, and manages its supply chain, Turkish Getir, German Gorillas, and a host of small, local and food delivery apps like Delivery Hero have made a start in building. delivery rider and “black shop” networks in European capitals and major cities.
That lead was not a concern for Zapp, who grew up in Amsterdam six months ago, according to Falter. “This is not a land grab and we have proven that before,” Falter said. “If you look at our growth in the Netherlands … we were the third, or fourth player, and immediately took the top position after our customer experience.”
Zapp and the European package of fast delivery apps are also facing the future threat of American giants GoPuff and DoorDash. GoPuff acquired Dija and Fancy startups last year to begin its launch in the UK, Spain and France, while DoorDash acquires Finnish operator Wolt – recently expanded from shipping food to grocery stores— in November for $ 8 billion. The NYSE Food Delivery Program also led the $ 750 million cycle of the Berlin Flink-based fast delivery service in December. Visit us
The prospect of dealing directly with SoftBank-backed GoPuff, as well as DoorDash, with a market capitalization of $ 32.9 billion, did not surprise Falter, who claims that Zapp made a profit by two-thirds of its orders despite intense competition since its inception. rivals. London and other European cities are covered with leaflets and communication campaigns last year offering $ 13 to $ 20 (£ 10 to £ 15) discounts to new, returning customers. “We’ve made an early decision to find customers who have better experience than the tough incentives,” Falter said.
Zapp’s focus on last-minute diet and nutrition instead of basic groceries, as well as direct cutting contracts with suppliers, meant it had higher jeans and a standard basket size of around $ 30, according to Falter. “We feel confident about our growth rate and the way we are looking at the decline but I would not feel too intimidated if I was one of the players who started the business because of the hard vouchers, and I do not have an economic background. support, ”said Falter.