French startup Cajoo is raising some money in order to compete more aggressively in the new and highly competitive category of food delivery companies. Carrefour is the largest investor today in the funding round. Along with existing investors Frst, XAnge and Headline (previously e.ventures), Headline is participating in today’s round.
Carrefour isn’t only making a financial investment. Cajoo will benefit from Carrefour’s buying organization. Cajoo can offer its customers more products this way.
Cajoo is one of many startups trying to invent a new type of grocery delivery. Cajoo operates dark-stores and maintains its own product inventory. The company allows customers to order products without worrying about whether or not they will be at home for delivery. A delivery driver will arrive with your groceries around 15 minutes later.
It competes against Getir and Gorillas as well Flink, Zapp, Zapp, Flink and Flink to name a few. The startup also competes indirectly with traditional retailers through their online ordering system.
Henri Capoul, cofounder and CEO of the company said to me that it is an extremely capital-intensive category. We own all the value chains. We must launch hubs if we wish to grow. To do this, we need to purchase products.
Cajoo has $40 million in bank accounts and wants to consolidate its market leadership in the country. The service is currently live in 10 French cities — Paris, Neuilly-sur-Seine, Levallois-Perret, Boulogne-Billancourt, Lille, Lyon, Toulouse, Bordeaux and Montpellier.
Yet, Paris is seeing some competitors to the company. Henri Capoul views it as validation of the market. There are many players who have raised large sums of money. It’s regulated. All our products are owned by us and must be regulated. He said that we can’t lose everything.
Henri Capoul anticipates some consolidation in the future, but the company will do everything possible to stay a large, independent business. European champions will become national champions in the near future. Some players are able to overcome the lack of product discounts right now. Henri Capoul stated that he is convinced that this market will see three to four strong local players in the future.
Cajoo currently operates in this sector as the only French company. It is clear the company considers itself to be a leader on France’s market. The company has begun to look at markets in other countries, such as Belgium, Italy and Spain.
First, however, the company plans to increase its workforce. By the end of this year, the number of employees in the headquarters will have doubled. The delivery and operations teams will grow dramatically as well. This is a major area where the company anticipates five-fold growth by the end.
Cajoo has hired some delivery workers. Cajoo also relies on its partners, both contractors and freelancers. The company is now facing some of the same challenges as Deliveroo or Uber Eats.
Cajoo may be an excellent business idea. However, users need to consider whether Cajoo really addresses a critical need or if they are just using the service because it is available. Over the long-term, instant delivery services could make a significant impact on brick and mortar shops.
Publiated at Thu, 02/09/2021 04:26.40 +0000