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Food delivery company JOKR confirms closure of operations in Santiago and Medellin • CableFree TV

YOKR confirmed on Tuesday that it has terminated its food-on-demand operations in both Santiago, Chile, and Medellin, Colombia, laying off 22 and 19 employees, respectively, in those markets.

The company said in an email that the move “will further narrow our geographic footprint in those markets that have reached the largest scale and therefore strengthen our path to profitability. As challenging as these changes are, they will help us become a more successful, resilient and sustainable company.”

Profitability Challenges Among Grocery Delivery Startups are not new. Companies struggled to come up with a business model that could generate significant revenue even if customers had just ordered a bunch of bananas or a gallon of milk.

Co-founder and CEO Ralf Wenzel revealed in April that JOKR reaches gross profit status, but this maximum did not last long. A few months later, he was back on the news saying that the company closed its presence in the US to focus on Latin America where he has worked in countries such as Mexico, Colombia and Peru.

The closure of the markets of Santiago and Medellin did not come as a complete surprise.

In September, Information reported that JOKR is in talks with investors to raise up to $50 million, valuing the company at $1.3 billion. That would be a small blow to the company’s $1.2 billion valuation compared to its $260 million announced last November.

The Information article also noted that the company was losing nearly $10 million a month and that even if it raised the entire $50 million, the capital would not give the company a big boost. Not counting these fundraising efforts, JOKR has raised a total of $430 million including debt.

Meanwhile, the company said it “remains focused on great opportunities in our current markets and is confident in our unique value proposition in this region.”

“JOKR is deeply grateful to its team, as well as to our customers and local communities, for their unwavering support and is committed to assisting employees in their transition,” it said in a statement.

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org