Amazon is considering an investment in Flink, a German grocery delivery startup.
Flink is reportedly seeking under €100 million (US$117 million) to fund its expansion, with Prosus and current shareholders also named as potential investors.
Both Amazon and Prosus declined to comment on the possible deal.
The interest signals Amazon’s continued focus on Europe’s rapid-delivery sector.
🔗 Source: Reuters
🧠 Food for thought
Implications, context, and why it matters.
Flink’s profit claims face scrutiny
- Flink says it is profitable in each country and targets profitability by Q2 2025 1. Be cautious because it filed for bankruptcy in Austria in December 2022 and left 1. It filed in France in June 2023 and exited in 2024 1.
- The company projected $600 million in 2024 gross revenue and 20% year-over-year growth, excluding France exit costs 1. Investors doubt profits due to tough per-order unit economics, with high customer acquisition costs 1.
- It operates in Germany and the Netherlands across 80 cities 1. That footprint is smaller than its 2021 push into France and the Netherlands 2.
- Rapid delivery drew $5.5 billion in 2021 1. Valuations fell, with Getir dropping from $11.8 billion to $2.5 billion before leaving Europe in 2024 1.
Amazon’s interest could validate delivery
- Amazon’s reported interest in Flink gives logistics tech vendors an opening to sell warehouse automation and micro-fulfillment systems (compact automated storage/picking setups) for sub-10-minute delivery, as Flink runs “dark stores” (delivery-only mini-warehouses closed to the public) needing specialized infrastructure 2.
- Real estate investors can target sites for delivery-only fulfillment centers in the 80 cities where Flink operates in Germany and the Netherlands 1, with 30 new locations planned over 12 months 1.
- Enterprise software vendors in just-in-time inventory management (tools that replenish items when needed to reduce stockouts while cutting waste) see demand from Flink’s fresh food focus 2 plus its work with Rewe, a major German supermarket chain, to serve Lieferando customers since September 1.
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