Thesestartupsuse dark stores as distribution hubs for their speedy deliveries.
The criticisms have unleashed a wave of actions against dark kitchens.
These restrictions add another obstacle for delivery startups, joining job cuts, consolidation, and a worsening economy.
These issues are changing the fortunes of an industry that surged during the pandemic.
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To reach mass scale, you need a lot of the facilities to cover a citys key markets.
Therein lies the crux of the dispute with city officials and more authorities are starting to take action.
The company has alsopartnered withreal estate firm Stoneweg to source property to serve as dark stores.
It now has 100 dark stores, or micro fulfilment centres (MFCs), across multiple countries.
A spokesperson for Barcelona City Council told TNW that companies have a two-year window to comply.
New permits
The backlash has been brewing for a while.
Last year,Amsterdam and Rotterdam made similar movesto rein in the spread of dark stores.
The permit rule arose after complaints from residents.
Were open to discussions with all relevant parties and stakeholders.
Flink, the Doordash-backed start-up, operates in the Netherlands.
It also has a second app pending.
The city district chairman inaugurated the first location, the spokesperson said.
Flink is also in the midst of a dark store debate in France.
Shifting markets
The landscape for rapid grocery delivery has changed drastically in just a few months.
Several thriving companies had emerged during the boom.
The company quickly became the face of the burgeoning industry inEurope, while also expanding into the US.
Time to focus
Consolidation has been rife across the sector.
In 2021, Fancy and Dija, two British newcomers, were bothbought by the US leader GoPuff.
From inflation to surging energy prices, the cost-of-living crisis in Europe is hitting people hard.
Inflation also means a higher cost of groceries and less discretionary spending by consumers.
If they have less money in their pocket, theyre going to spend less and thats a fact.
We might grow a little slower than we were growing before, Michaud said.
Consumer slowdown is happening.
