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The Dark-Side of 15-Minute Grocery Delivery [bloomberg.com]

 

By Lev Kushner and Greg Lindsay, Photo: Chris McGrath/Getty Images, Bloomberg City Lab, December 7, 2021

When we think of resource frontiers, it calls to mind the rugged, glamorous classics: oil booms, gold rushes, or, in the not-so-distant future, asteroid mining. But the latest is closer to home. Whether you live in Manhattan, Hollywood, or beyond, the storefronts and sidewalks in your city are being mined.

Over the last year, cities across the U.S. and Europe have seen a rapid rise in the number of dark stores — mini-warehouses stocked with groceries to be delivered in 15 minutes or less. Operated by well-funded startups such as Getir, Gopuff, Jokr and Gorillas, dark stores are quietly devouring retail spaces, transforming them into minimally staffed distribution centers closed to the public. In New York City, where seven of these services are currently competing for market share (including new entrant DoorDash), these companies have occupied dozens of storefronts since July, with expansion plans calling for hundreds more in that city alone.

With low or no delivery fees, the convenience is mind-bending. “Fifteen-minute delivery changes the way you shop,” JOKR’s Zachary Dennettexplained to Grocery Dive. “Customers first try us out because they forgot an ingredient. Then they use us the next night for all their dinner ingredients.” Soon enough, they never have to wear pants again.

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