Almost half of all grocery shoppers nowadays are ordering their items online and getting them delivered right to their doors, according to Coresight's U.S. Online Grocery Survey 2022 report. Fans of one company will have to switch to another, though, as it is no longer in service, laid off staff, and shut down nine fulfillment centers.
Back in December 2021, the New York-based app 1520 shut down after talks that another grocery delivery company may purchase it fell through. Now that particular competitor is no longer in business. Jokr just closed its New York and Boston operations and is thinking of closing other U.S. locations, according to Commercial Observer, and will focus on its business in Latin America.
"While we were able to build an amazing customer base … and lay the groundwork for a sustainable business in the U.S., the company has made the tough decision to exit the market during this period of global economic uncertainty," the company said in an email to customers in late June.
Jokr was known for its 15-minute grocery delivery, but as of July 5, when using the app for delivery in New York or Boston, it displays a message saying, "We're sorry but you're outside of our delivery area."
In December when 1520 folded, Jokr was valued at around $1.2 billion and company leaders said they had enough cash to operate for two years. In April it shut down in Europe.
It isn't the only grocery delivery service facing setbacks right now—Grubhub was looking for someone to buy partial stakes in the company, but has fallen short. The news comes as grocery store chains like Walmart and Amazon are stepping up their online and delivery services to make it easy for shoppers to stick with a one-stop shop.