Fast grocery-delivery apps face backlash from cities

2 years ago 82
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By Jane Wakefield
Technology reporter

Image source, Getty Images

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Ultra-fast grocery delivery services have seen rapid rises in recent months

Apps that deliver groceries in minutes are facing a backlash from city authorities over how they operate.

Last week, Amsterdam and Rotterdam banned the opening of any new "dark stores" - distribution hubs for on-demand groceries - following complaints they cause disruption.

And now New York City Council's Gale Brewer has said the apps are "misusing" empty city-centre retail units.

Getir told BBC News it would work with cities to find solutions.

'Cause nuisance'

Billions of dollars are being invested in fast grocery-delivery services such as Getir, founded in Istanbul, and Germany's Gorillas and Flink.

But Amsterdam's deputy mayor, Marieke Van Doornick, told Reuters news agency: "The business model of these companies is that they want to deliver groceries in 10 minutes.

"That means they need to be based in neighbourhoods.

"That's exactly the place where they also cause nuisance."

And in an open letter in French newspaper Le Journal du Dimanche, in December, Emmanuel Gregoire, deputy mayor for urban development in Paris, said while there were no laws to regulate dark stores, there were rules about opening warehouses.

"Paris will systematically remind retailers of this rule that have not requested authorisation to set up a warehouse," he said.

"We will take the necessary measures to enforce it, if necessary, with heavy financial and penal consequences."

Lyon has also banned new dark stores from opening.

'Noise contained'

Getir, valued at $7.7bn (£5.7bn) last year, has launched in a number of cities in Britain, the Netherlands, Germany, France, Italy and Spain and, in December, New York.

And like its rivals it uses space left vacant by shops or restaurants that went under during the Covid pandemic as a key part of its distribution system.

UK general manager Turancan Salur told BBC Radio 5 Live's Wake Up to Money programme the business aimed to work in harmony with city authorities.

"We keep noise contained," he said.

"Because we operate with electric vehicles, there is no air or noise pollution.

"Our operation is relatively silent.

"Any city we operate in, we engage with national and local government to find a sustainable way to keep our business operating."

And such businesses benefited customers and employment, with Getir alone creating 10,000 jobs across Europe.

Meanwhile, others, including Gorillas and Cajoo, have said they work with local businesses, such as bakeries.

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