Deliveroo is exiting the German market – gpgmail


UK on-demand food delivery startup Deliveroo is pulling the plug on its service in Germany.

The startup expanded into the market more than four years ago. But in an email sent to users it writes that — “regrettably” — it will be exiting Germany on August 16.

“This was not an easy decision and one we have not taken lightly,” it adds, saying its focus will be on “growing our operations in other markets around the world”.

The company had already dialled back service in the market, shuttering services in a number of smaller German cities a year ago. At the time it said it would focus on Berlin, Munich, Cologne, Hamburg and Frankfurt.

A spokesperson for Deliveroo confirmed it’s complete exit from Germany, emailing gpgmail the following statement:

We want to thank all of the riders and restaurants who worked with Deliveroo in Germany, as well our wonderful customers. It has been an honour to serve so many people amazing food from Germany’s many great restaurants and to work with so many brilliant, hard-working riders. We are grateful to our extremely talented employees for their commitment to bringing fantastic foods to people’s homes, and they will be supported in this period. Deliveroo will continue to grow and invest in markets across the world, seeking to become the world’s definitive food company.

The spokesperson added that Deliveroo intends to refocus resources and investment to accelerate growth and expansion in other markets across Europe and APAC — without specifying exactly where it plans to focus.

Support for riders and affected employees will include unknown levels of compensation and goodwill packages, according to information provided by Deliveroo. Update: The company has now provided more detail of the compensation, saying riders who have been active in the past 12 weeks will receive the following goodwill payments:

  • A goodwill payment of 10 days’ pay, based on their average weekly earnings over the past 12 weeks

  • Another goodwill payment of 2 weeks’ pay, based on their average weekly earnings over the past 12 weeks

Any outstanding fees will also be paid to riders.

Employees who are being terminated will receive their statutory notice plus a further payment — either of two weeks’ pay for those who have been at the company for up to a year, or one month’s pay for each year of employment for those who have been at the company for more than a year.

Deliveroo has also said it does not rule out returning to Germany in future, albeit it expressed a similar sentiment when it downsized its service footprint in the market last year.

At the time of its launch into Germany, back in April 2015, we wrote that Deliveroo would face “stiff competition”, noting for example that Berlin was already host to a range of local food delivery startups.

Competition in the on-demand food delivery space in Europe has raged fiercely for years — with very little to distinguish one delivery app from another, aside from price. Switching service is always just an app tap away.  But with consolidation now starting to eat into the market the temperature is rising.

At the end of last year another Deliveroo rival, Delivery Hero, ceded its entire business in Germany to Netherlands-based Takeaway.com — selling the unit for €930M.

While, late last month, UK-based Just Eat and Takeaway.com announced they were in advanced talks to combine their businesses. Their boards reached agreement on terms last week — with the deal set to be put to their respective shareholders before the end of the year.

Most likely that mega-merger is concentrating minds at Deliveroo. Competing for customers with a platform giant valued at $10BN+ certainly does not sound like a cake walk.

gpgmail’s Steve O’Hear contributed to this report 


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Sperm storage startups are raising millions – gpgmail


A number of startups are bringing technology and innovation to the fertility industry, with a growing few focused specifically on male fertility.

“Society at large doesn’t understand the subject of fertility,” Tom Smith, the co-founder and chief executive officer of men’s sperm storage startup Dadi tells gpgmail. “People see it as a female issue.”

Dadi has raised a $5 million seed extension led by The Chernin Group, a private equity fund that typically invests in media, with existing investors including London seed-fund Firstminute Capital and New York’s Third Kind Venture Capital also participating. The company, which sends at-home fertility tests and sperm storage kits, closed a $2 million seed round earlier this year.

Dadi’s funding event comes shortly after another men’s fertility business, Legacy, raised a $1.5 million round for its sperm testing and freezing service. Both companies hope to leverage venture capital funding to become the dominant men’s fertility brand.

Bain Capital Ventures -backed Legacy, which won gpgmail’s Startup Battlefield competition at Disrupt Berlin 2018, allows men to get their sperm tested and frozen without visiting a clinic or meeting with a doctor. Founder and chief executive officer Khaled Kteily said the company, which is based out of the Harvard Innovation Labs in Boston, planned to use the capital to expand its sperm analysis and cryogenic storage services.

Sarah Steinle, head of marketing, Khaled Kteily, founder and CEO, and Daniel Madero, head of clinic partnerships at Legacy .

Like many startups today, Dadi and Legacy are capitalizing on the direct-to-consumer business model to educate men about their fertility. Customers of both Dadi and Legacy simply order a DIY sperm collection kit online, collect a sperm sample and send it back to the company for a full fertility report. Both companies offer sperm storage services too. Dadi charges a total of $199.98 for its sperm testing kit and one year of sperm storage, while Legacy asks for $350 for clinical fertility analysis and lifestyle recommendations. To store your sperm in Legacy’s cryogenic storage facilities, it’s an additional $20 per month.

One in six couples struggles to get pregnant after one year of trying. According to the U.S. Department of Health & Human Services, one-third of the infertility cases amongst those couples are caused by fertility problems in men, another one-third of issues are connected to women and the remaining cases are a result of a combination of male and female fertility issues. By making sperm storage more accessible, startups hope to encourage a conversation around family planning and fertility among young men.

“Men also have a biological clock,” Smith said. “From your late 20s and onward, your overall sperm count absolutely declines and, more importantly, the number of mutations that can be passed on to that potential child grows.”

Dadi, a New York-based company, plans to use its latest bout of funding to continue developing a number of yet-to-be-announced products, as well as offer new support services to customers who’ve taken Dadi’s fertility tests: “If we are going to live up to our overall objective of being this encompassing business helping men through the fertility stack, the next step for us is investing in next-step support,” Smith explains.

Dadi’s founding team lacks experience in the healthcare sector, which is likely to pose problems as the company expands and forges partnerships in the greater healthcare field. Smith previously led a custom emoji business, Imoji, which was acquired by Giphy in 2017. Dadi co-founder Mackey Saturday, for his part, was previously a graphic designer responsible for creating Instagram’s logo.

Aiming to make up for its lack of expertise, Dadi has formed a Science and Technology Advisory Board with participation from Dr. Michael Eisenberg, associate professor of urology at Stanford’s Medical Center, and Dr. Jacques Cohen, the laboratory director at ART Institute of Washington at Walter Reed National Military Medical Center.

Legacy’s Kteily previously worked as a consultant focused on health & life sciences before serving as a senior manager at the World Economic Forum. Daniel Madero and Sarah Steinle, also Legacy co-founders, previously worked at Medifertil, a Colombian fertility clinic, and Extend Fertility, respectively.

In addition to Dadi and Legacy, other companies close to the space have recently secured notable investments including Hims, the provider of direct-to-consumer erectile dysfunction (ED) and hair loss medication, which raised a $100 million this year. Another seller of ED meds, Ro, has raised a total of $91 million. And Manual, an educational portal and treatment platform for men’s issues, raised a £5 million seed round in January from Felix Capital, Cherry Ventures and Cassius Capital.


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