Ghost stores have faced stiff competition from traditional supermarkets despite promising ultra-fast deliveries. A year after its Valencia launch and prior to other major Spanish cities, expansion stalled. Deliveries from blind supermarkets, once driven by tech-backed models, are slowing as Gopuff departs Spain and Bring and Gorillas reduce their presence. The struggle pushes prices for home delivery down to levels that still aim to beat conventional retailers like Mercadona or Consum. The downturn of blind grocery concepts aligns with a broader funding crunch in tech, retreat of big venture funds, and a cultural preference in Spain for shopping in physical stores. In Valencia, workers were told centers were being put in reserve, with claims of a planned hibernation as consumer demand in large cities cooled.
In Valencia, the ultra-fast delivery segment saw Gorillas, Bring, and Glovo active. Gorillas was the early entrant in Túria, and it was the first to pull back. In May, the German company announced a withdrawal from four European markets, including Spain. It said profitability would be the focus in its five key markets, which generate the bulk of revenue from Germany, France, the United Kingdom, the Netherlands, and the United States. The Valencia warehouses reportedly operated at a minimal level in three locations, with one warehouse serving as the main hub and the others in the Mestalla and Russafa neighborhoods, according to workers. A former employee indicated orders had dropped from about 250 per day to a much lower level. The commenter noted that competition from Getir, which entered Valencia in late 2021, intensified the market and led to a sharp fall in orders during winter. It was also suggested that the business model struggled from the outset because many Spaniards prefer grocery trips to physical stores.
Getir viewed Valencia as a significant regional market. Through the app, customers gained access to roughly 2,000 items ranging from snacks and beverages to meat, fish, alcohol, fruit, vegetables, and bread. Pricing varied with demand, and order size was limited by what a courier could safely carry on bicycle or electric motorcycle.
temporary shutdowns
A Getir employee in Valencia reported that warehouses were being closed temporarily due to weakening demand during the summer. The company’s official stance reflects the same message, with no specific closure numbers given.
At the end of May, Getir announced a 14% global workforce reduction, slowing its expansion plans. Earlier in March, the Turkish-founded company reached a valuation of roughly €10.676 billion after a capital round led by the Abu Dhabi sovereign wealth fund Mubadala, with participation from growth funds and general investors. The investment aimed to accelerate expansion, a path that soon slowed amid market realities.
The latest ultra-fast delivery firm to retreat from Spain is US-based GoPuff. The company, which does not operate in Valencia, reported 186 layoffs and the closing of five so-called ghost supermarkets in Madrid. GoPuff began operations in Spain in February following its acquisition of Dija at the end of 2021.
The collapse of several ultra-fast grocery delivery tech firms follows a broader downturn in venture capital funding for startups amid economic uncertainty. Experts note that U.S. funding cooled as macroeconomic conditions influenced investment risk. A fund director explained that high-interest-rate policy affected stocks and investor sentiment, contributing to market hesitation and slower expansion overseas.
Overall, the trend reflects a cautious shift in the sector as tech-led grocery models face real-world cost pressures and consumer habits that still favour traditional shopping in many communities. [Attribution: Levante-EMV; Draper B1 Fund commentary]