BERLIN Reuters - Delivery Hero says it invested $200 million in Gorillas grocery delivery company as the race to dominate the rapid delivery service sector picks up speed.
Delivery Hero owns 8% of the fast growing startup, which operates more than 180 warehouses in nine countries and has coveted 'unicorn" status less than one year after its foundation.
The third most recent round of investment has raised nearly $1 billion and seen participation by China's Tencent, DST and Coatue Management, all of which had also been part of the last round of investing in March https: www.reuters.com com article tech-gorillas - idUSL 8 N 2 LN 6 G 7, which raised $287 million.
Gorillas is now estimated in the pre-money at about $2.1 billion, according to Delivery Hero.
Delivery Hero is a mission to advance rapid commerce globally, and we see Gorillas as one of the leaders in Europe and the U.S. Niklas Oestberg said they will be sharing the 2016 pipeline between Delivery Hero and Delivery Hero.
The market for quick grocery delivery service is booming: According to sources familiar with the matter, New Zealand-based DoorDash is backing a new funding round at Gorillas competitor Flink https://www.reuters.com. Gorillas advertises itself as being able to deliver basic grocery items within 10 minutes for a flat-rate fee of 1.80 euros - a model that is seen as seeking to disrupt old fashion food retail.