Gorilla tactics: Berlin delivery riders take on $1B startup

Dozens of workers gared outside of one of Berlin's most-celebrated startups, grocery delivery company Gorillas, to protest firing hours earlier of a colleague.

“We want Santiago back!” young riders chanted last week, threatening to blocke one of company's inner-city warehouses with ir bikes unless he was reinstated.

wildcat strike on a balmy June evening was unusual even by Germany's strong trition of labor rights, highlighting growing tensions in capital's freewheeling startup scene.

“We came here to show our solidarity, to support our friend,” said Zeynep, a Gorillas rider who declined to give her last name for fear of facing repercussions from company. "We want this decision to be reversed as soon as possible.”

riders said ir colleague h been fired without warning after turning up late for his shift. In a statement, company said he his contract was terminated for “serious misconduct” but declined to provide details, citing confidentiality.

Founded just last year, Gorillas has benefited from surging demand for quick grocery deliveries during pandemic. In March, company raised about $290 million from investors, becoming Germany’s fastest 'unicorn’ — a startup with a total valuation of $1 billion or more.

Gorillas now operates in dozens of cities across Germany, France, Italy, Nerlands and Britain, and has alrey set its sights on New York, where it faces U.S. incumbents such as Gopuff.

But strikes like those in Berlin show trouble is brewing in its home market.

rowdy but peaceful protest late Wednesday drew support from employees of rival delivery services, some of whom downed ir colorful courier bags to join picket. Eventually Gorillas agreed to close depot for night, drawing cheers from protesters.

next day, riders blocked anor warehouse, making clear ir gripes go beyond firing of a single colleague.

“In last six months, that I’ve been here I’ve noticed so many ways that company is doing things in an unjustified way,” said rider Huseyin Camalan. “We’re here to stand against that. It’s part of a larger thing.”

Camalan said many riders suffer from back pain and or health problems due to heavy bags y have to carry. Faulty bikes, a limited say in ir shifts and lack of ministrative support are also a problem, he said.

When riders send emails asking for help, y rarely get a reply, Camalan said, ding "y ignore us.”

Last week four rivals — Delivery Hero, Bolt, Glovo and Wolt — announced a joint effort to develop a code of conduct in what appeared to be an effort to he off a regulatory crackdown by European Union.

“We want to establish better governance of working conditions, labor practices and social rights for all workers, regardless of ir employment status,” Sacha Michaud, co-founder of Spain-based delivery company Glovo said.

According to experts, many delivery firms in Germany operate on edge of legality in ir rush to expand before y run out of cash.

Gorillas says it doesn't consider itself part of ‘gig economy,’ having chosen to employ its riders and warehouse staff. But hourly wages are low at 11.50 euros (less than $14) after tips and probationary period is six months — longest allowed by law.

Riders at protest complained that company doesn't issue m with phones y need for work, that salaries are often short and weight limits on bags aren't respected.

“ working conditions are at minimum end of what’s normal in Germany,” said Sebastian Riesner, who hes Berlin chapter of hospitality workers union NGG. “Some of contracts are pretty outlandish.

"re seems to be a strategy of relying on people who don't know rules in this country."

Angry Gorillas riders recently banded toger and, with help of NGG, began process of electing a works council. Under German law, members of council get a say on working conditions and firings.

Falling in line with Germany's established labor practices could make it harder for businesses like Gorillas to turn a profit.

“I don’t think se companies are earning any money at moment,” said Werner Reinartz, a retail expert at University of Cologne. German business monthly Manager Magazin cited internal documents suggesting that Gorillas loses 1.50 euros ($1.82) on every order.

At same time, foreign rivals such as Getir from Turkey and Britain-based Weezy are eyeing a launch in Europe's biggest economy, where y will compete for same limited pool of riders — alrey dwindling as or parts of economy wake up from pandemic lockdown.

“ strikes show that current model is difficult to carry forward,” said Reinartz. “You need people who want to do this job."

company's chief executive, Kagan Sumer, said in a message to staff that he was “deeply troubled” by events of past days, but insisting that firing of rider h been a “difficult but necessary decision.”

Sumer didn't dress protesters' broer complaints, but inste announced plans to cycle to every city where company operates, to meet staff and ride through cities with m.

Left party's candidate in September's mayoral election, Klaus Lederer, expressed his support for striking Gorillas workers.

“If se companies want to have a future in Berlin, n y need to immediately respect minimum standards of treating ir employees fairly,” he said.

Riders such as Camalan insist y can force a change from below.

“We live in Germany." he said. “We don't live in some random country that doesn't have any labor laws.”