The fast home grocery delivery sector is going through a soft patch. The French subsidiary of fast food delivery company Flink, which employs several hundred people, has just been placed in receivership by the Paris Commercial Court, the German parent company having “decided to leave the French market”announced its management to Agence France Presse, Monday, June 5.
THE “quick trade” emerged thanks to the confinements linked to the Covid-19 epidemic and offers in a few minutes the delivery of everyday products, similar to those sold in a convenience store. He is strongly criticized by elected officials who denounce the arrival of “warehouse towns”nuisances for local residents, even the development of “lazy economy”.
“Dark stores” considered as warehouses
For Flink, “the reasons are essentially regulatory”explained the general manager of Flink France, Guillaume Luscan, who made a point of emphasizing “all the progress made to achieve profitability in France”. Flink uses nineteen “dark stores” in nine cities in France and “about two thirds of this activity is operated from shops”said Mr. Luscan. “Our model works from the moment we are close to our customers” and, with the new regulations, ” this is no longer possible “regretted the general manager who specified that “The objective is to find a buyer”.
In March 2023, the sector suffered a major setback, with the government decreeing that the “dark stores” where products for delivery are stored were warehouses, and not businesses, paving the way for town halls to regulate this activity. Indeed, these premises could be forced to close if the local urban plan (PLU) prohibits this type of activity at their address.
The mayors of Paris and major cities denounce these blind premises devoted to the delivery of shopping ordered online, which threaten local commerce.
Discussions regarding a takeover by Getir of Flink
This receivership procedure could do the business of its Turkish competitor Getir, whose French subsidiary has also been placed in receivership, but which now becomes the only “quick trade” player to have declared that it wishes to continue its activity in France. .
At the end of April, the British business daily FinancialTimes affirmed, on the basis of sources familiar with the matter, that discussions were underway concerning a takeover by the Getir group of its German competitor Flink. Getir declined to comment.
“We were in the process of building a lasting model”with Carrefour in particular as “key investor and partner”, was sorry Mr. Luscan. Established in France for two years, Flink had bought its French competitor Cajoo in May 2022, which it had absorbed.