Formula One star Lewis Hamilton invests in rapid grocery delivery start-up Zapp

3 months ago

A courier for U.K.-based accelerated market transportation work Zapp.


LONDON — British Formula One operator Lewis Hamilton has backed accelerated market transportation start-up Zapp arsenic portion of a larger $200 cardinal concern successful the company.

The London-based steadfast said Friday it raised the caller currency successful a Series B backing circular led by task superior firms Lightspeed Venture Partners, 468 Capital and BroadLight Capital. Existing investors Atomico, Burda and Vorwerk Ventures besides took part.

Zapp did not disclose its valuation, and declined to remark connected the size of Hamilton's stake.

The engagement from Hamilton marks a uncommon start-up concern from the F1 racing star. The Mercedes squad operator has won 7 World Drivers' Championship titles, holding a associated grounds with retired German operator Michael Schumacher.

Founded successful 2020, Zapp's work lets radical bargain snacks, drinks and indispensable items from alleged "dark stores," tiny warehouses built with the sole intent of preparing online transportation orders. The app promises transportation times of arsenic small arsenic 20 minutes.

British Formula One operator Lewis Hamilton.

Bryn Lennon - Formula 1 | Formula 1 via Getty Images

Zapp is 1 of galore upstart retailers successful Europe competing for shoppers' wallets with the committedness of superfast delivery. It's competing against immoderate well-funded rivals, including the Turkish institution Getir and German firms Gorillas and Flink.

Zapp claims it's antithetic to competitors arsenic its app offers a integer alternate to the convenience store, alternatively than an online mentation of a supermarket similar Tesco oregon Sainsbury's. The institution presently operates successful 7 cities including London, Amsterdam and Paris.

"With this caller superior we volition absorption connected achieving profitability successful our existing markets arsenic good arsenic bringing Zapp to caller customers globally," Zapp co-founder Joe Falter said successful a statement.

The institution said it besides plans to walk the caller superior connected improving its lawsuit acquisition and proviso chain. Last year, Zapp opened a 25,000 quadrate ft organisation halfway successful London to support goods flowing to its acheronian stores.

JPMorgan acted arsenic fiscal advisor to Zapp connected the deal, the institution said.

Rapid transportation firms person experienced arsenic accelerated maturation since the onset of the coronavirus pandemic. Getir was astir precocious valued by investors astatine $7.7 billion, portion Gorillas scored a $1 cardinal financing circular led by German nutrient transportation steadfast Delivery Hero, which valued it astatine implicit $3 billion. Meanwhile, DoorDash led a $750 cardinal concern successful Berlin start-up Flink.

As the abstraction has go much crowded, determination person been expanding signs of consolidation, with Getir buying London start-up Weezy and Gorillas snapping up French rival Frichti.

Tech investors and executives are starting to question the semipermanent sustainability of specified start-ups. Tim Steiner, the CEO of retail tech steadfast Ocado, said Wednesday that helium sees "little differentiation betwixt each the players retired there," and is unsurprised to spot consolidation successful the market.

"We don't spot it arsenic a victor takes each market," Steve O'Hear, Zapp's vice president of strategy, told CNBC. "Just similar the wider market market, determination is country for antithetic players and historically customers person demonstrated that they worth choice."