Quick Commerce Startup “Bananas” Officially Closes, Immediately Pivot to New Business

Startups quick commerce Bananas announces it will be closing the service e-grocery after officially operating for 10 months. Failure to find a suitable economic unit was the main reason for this decision.

To DailySocial.id, Bananas Co-founder & CEO Mario Gaw said that even though he was closed he would retain a number of employees for pivot to a new business that is really focused on solving problems with better economic units. "Completely new [business] focusing on a pain point with better unit economics, " he said.

In an announcement made by the company on social media, the company expresses its gratitude to key partners and suppliers who have supported the presence of the service e-grocery from Bananas to serve consumers. However, the company admits that after months of operation, while continuing to experiment with different parts of the business, it couldn't figure out how to create a working economic unit.

“With the overwhelming support of our investors, we have decided to take advantage of runway that's left to build something better," the announcement read.

Further submitted, related to that management will stop the service e-grocery upon completion selling all stock at a significant discount. The company also ensures that all of its affected talent can quickly find a new place during this transition period, leveraging its network and colleagues in the industry.

“This is just a temporary farewell from the team behind Bananas. We believe that these difficult times will only forge the people in them to be better and stronger in the future," the announcement concluded.

When it first debuted, Bananas was supported by a number of investors, such as East Ventures, SMDV, Arise, and Y Combinator. The total fund raised was $1,5 million.

Challenge in quick commerce

Initially Bananas positioned itself as quick commerce for consumers middle to high. This group is defined as having a busy lifestyle, such as professionals and career parents who spend a lot of time outside the home. They are also not the typical opportunist who is always supported by discounts or cashback.

“We see that this segment is still very new, they are lazy to spend time on the road, not to mention having to queue at the supermarket and transport their heavy groceries. Angle we are targeting them, not those who have to be provoked by promos," said Mario when interview Dalam session #TuesdayStartup last September.

He also acknowledged that the challenges in quick commerce it is so great because it brings together all the complexities of its operations. For example, have to wake up dark store, managing inventory, sourcing which goods in locations sell well and which do not, this is only a small part.

"So all functions and lines are difficult. Also from marketing for acquisition user at Pondok Indah and Kelapa Gading it might be easier to make event at the mall. But it's not necessarily the same in other locations because of different lifestyles and habits."

In addition, with the increase in fuel prices, Bananas automatically has to rack their brains to keep pressing costs in the midst of a retail business war whose margins are notoriously thin. The solution that is currently being worked on is to develop an algorithm so that the delivery system can be carried out in one batch for one vehicle at a time for one area.

Previously, Dropezy also took similar steps with a pivot to a completely new business outside e-grocery. The closest competitors are Dropezy and Bananas, which move in the same vertical, leaving only Astro still operating.

Astro starts to develop products private-label, named Astro Goods. So far, the products that have been released range from snacks, fresh foods, ready-to-cook packages, to handicrafts. Next, Astro Kitchen for ready-to-eat food and beverage products. Mentioned, the company has more than 40 dark store the largest in Jabodetabek.

HappyFresh also briefly stopped, but is back in operation after receiving fresh funds shaped debt from Genesis, InnoVen, and Mars. All three are venture capital focused on debt-based financing (debt).