Another fast-grocery startup bites the dust.
JOKR, the speedy grocery delivery company that was part of a larger wave of startups that entered the US last year, is shutting down its US operations, according to an email sent to customers today. The company said the last day of delivery in New York City and Boston will be June 19th.
From the email:
While we were able to build an amazing customer base (thank you!!) and lay the groundwork for a sustainable business in the US, the company has made the tough decision to exit the market during this period of global economic uncertainty.
According to the letter, JOKR closed their shops today to give their team the day off and will reopen for deliveries through Sunday. Customers can order food items at a 50% discount and will also be able to order items for pick up next week as the company clears out its inventory.
The news of JOKR winding down their US business is just the latest in a string of bad news for fast-grocery startups, many of which just last year had raised eye-popping rounds of venture capital and expanded to new cities. In March, Fridge No More and Buyk indicated they would be shutting down, and last month saw Berlin-based Gorillas announce layoffs and GoPuff begin shutting down multiple warehouses.
Last year, we asked the question if these companies were the second coming of Kozmo, the infamous fast-delivery startup from the first dot-com boom. With the news of their struggles, it’s appearing that the answer to that question may be yes.
Aww…I miss Kozmo. I’ve yet to understand what business model would work for these types of businesses. Have any of them actually been profitable?