Jokr ceases fast delivery in the United States to focus on LatAm

Jokr, a fast-delivery startup that bills itself as “the future of supermarkets,” is ceasing operations in New York and Boston and refocusing on the Latin American market, which company executives say is expected to be more profitable.

“We have decided to halt our business activities in the United States for the time being, which lately accounted for only about 5% of our business,” Chief Executive Ralf Wenzel said in a statement prepared Wednesday, June 15, as quoted by Bloomberg. News. “Latin America is particularly under-reached and underserved, which is why Jokr has focused on the Latin American opportunity from the start.”

The company also said it plans to close nine fulfillment centers, leaving about 190 worldwide, and cut 50 workers, or about 5% of its global workforce.

According to Jokr’s website, the company has a base in New York in addition to its headquarters in Luxembourg. Bloomberg reported that Jokr will keep some New York employees even if it stops serving customers in the city.

Bloomberg reported that Jokr had also ended its delivery service in Europe earlier, but continued to do business in Brazil, Chile, Colombia, Mexico and Peru.

TechCrunch reported in March that Jokr had raised $260 million in Series B funding at a valuation of $1.2 billion.

See also: Fast food delivery companies are taking advantage of the publicity fuss to make ends meet

In May, Jokr sought to increase its revenue by selling advertising on its app and on driver delivery bags.

Super-fast grocery delivery companies like Jokr are struggling with the economics of their model. One report estimated that these on-demand delivery services were losing up to $20 per order.

Some of the challenges facing online grocery services are outlined in a May 31 PYMNTS report titled “The Tailored Shopping Experience: Meeting Consumers’ Online Expectations.”

See report: Grocers must offer personalized e-commerce experience, data shows

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

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