- Flink is a German on-demand food delivery service founded by Oliver Merkel, Julian Dames, and Christoph Cordes in 2020. Though the company is a relative newcomer, it has grown quickly since being launched.
- Flink makes money by selling marked-up grocery items which it purchases in bulk. The company partnered with supermarket giant REWE and operates smaller warehouses to boost its margins.
- Flink charges a delivery fee on orders with an attractive minimum order amount. The company is also charged an interchange fee by card issuers which it passes on to the consumer.
|Value Proposition||Flink offers the following value propositions for its customers: – Instant Grocery Delivery: Quick and convenient delivery of groceries. – Wide Product Selection: A diverse range of grocery items and essentials. – Affordability: Competitive pricing and discounts. – User-Friendly App: An easy-to-use mobile app for ordering. – Speed and Efficiency: Fast delivery and order fulfillment. – Convenience: Saving time and effort with doorstep delivery. – Safety Measures: Ensuring safety during the COVID-19 pandemic. – Sustainability: Commitment to environmentally friendly practices.|
|Core Products/Services||Core products and services provided by Flink include: – Mobile App: A user-friendly mobile app for grocery ordering. – Product Catalog: A catalog of groceries and household essentials. – Delivery Services: On-demand delivery of orders to customers’ homes. – Payment Processing: Secure payment processing within the app. – Customer Support: Support for order-related inquiries and issues. – Discounts and Promotions: Offers and discounts on select products. – COVID-19 Safety Measures: Implementing safety protocols during the pandemic. – Sustainability Initiatives: Environmental sustainability efforts.|
|Customer Segments||Flink targets various customer segments: – Consumers: Individuals and families in need of grocery deliveries. – Busy Professionals: Professionals with limited time for shopping. – Elderly and Vulnerable: Vulnerable populations requiring safe deliveries. – Small Businesses: Small businesses and restaurants for supplies. – Parents: Parents seeking convenience in grocery shopping. – Urban Dwellers: City residents with busy lifestyles. – Environmentally Conscious: Customers interested in sustainable options. – COVID-19 Concerned: Individuals concerned about safety during the pandemic.|
|Revenue Streams||Flink generates revenue through several revenue streams: – Delivery Fees: Charges for delivering orders to customers. – Product Markup: Markup on grocery prices compared to in-store prices. – Subscription Models: Subscription fees for premium services. – Promotion Fees: Fees from brands for promotions and listings. – Advertising: Earnings from in-app advertising and partnerships. – Data Analytics: Revenue from data insights and analytics. – Sustainability Initiatives: Income from environmentally friendly practices. – COVID-19 Safety Measures: Earnings from safety-related services.|
|Distribution Strategy||The distribution strategy for Flink focuses on accessibility and fast delivery: – Mobile App: Offering a user-friendly mobile app for ordering. – Product Catalog: Maintaining a comprehensive grocery catalog. – Last-Mile Delivery: Efficient last-mile delivery services. – Payment Processing: Secure payment processing within the app. – Customer Support: Providing responsive customer support. – Marketing and Promotion: Promoting the app and special offers. – Partnerships: Collaborating with grocery brands and suppliers. – Sustainability Efforts: Emphasizing sustainability and eco-friendly practices.|
Flink origin story
Flink is a German on-demand food delivery service founded by Oliver Merkel, Julian Dames, and Christoph Cordes in 2020.
Each of the three co-founders has an impressive resume and extensive industry experience. Merkel was a former Bain & Company partner who led the firm’s German retail operations.
Cordes was the CEO of the online shopping company home24, while Dames held senior positions at Foodora, Delivery Hero, and Foodpanda.
The impetus for the founding of Flink was perhaps provided by Merkel, who had previously made a significant investment in Gorillas – another German food delivery company promising to deliver food in ten minutes.
Like Gorillas, Flink is pitching itself as a grocery solution delivering fresh food items on-demand.
Delivering these items as consumers require them is logistically challenging, especially when compared to longer-life items such as beer, cigarettes, chocolate, and other snack foods.
Despite the logistical issues, however, the Flink co-founders believed instant shopping would become the new standard for perishable grocery items.
Consumers, they argue, eat three meals per day with many shopping multiple times per week – representing a potentially lucrative market where consumers make repeat orders.
After acquiring rival service Pickery, the company was operational in five German cities by February 2021.
A successful round of funding then enabled Flink to expand into the Netherlands and France at a rapid pace. Less than twelve months after it was launched, Flink became the fastest German company to reach unicorn status.
In September 2021, Flink announced another round of funding from DoorDash for several hundred million dollars. Recent estimates value the company at $2.1 billion.
Flink revenue generation
Flink earns money by selling grocery items on its platform and via delivery fees on customer orders.
The company earns money on grocery sales by purchasing items in bulk and selling individual products for a higher price than can be found in traditional supermarkets.
As part of the deal, it is likely Flink receives favorable rates for bulk purchases.
Margins are also boosted by the company operating small, optimized warehouses in lower-income areas where operating costs are lower.
Flink also charges a delivery fee over and above the total purchase amount.
In Germany, the delivery fee is €1.80 with a minimum order amount of just €1.
These fees are very attractive to consumers buying perishable items who need to make smaller, more frequent purchases.
Flink also charges transaction fees to offset the cost of the interchange fees charged by card issuers such as Mastercard and Visa.
- Flink is a German on-demand food delivery service founded in 2020 by Oliver Merkel, Julian Dames, and Christoph Cordes.
- The co-founders have extensive industry experience, coming from backgrounds in companies like Bain & Company, home24, Foodora, Delivery Hero, and Foodpanda.
- Flink’s business model revolves around operating dark stores and delivering fresh grocery items on-demand.
- The company quickly partnered with REWE, a major supermarket giant, to be its exclusive supplier, which helps Flink purchase items in bulk at favorable rates.
- Flink makes money by selling marked-up grocery items purchased in bulk, thus generating revenue through grocery sales.
- The company operates small, optimized warehouses in lower-income areas to boost profit margins.
- Flink charges a delivery fee of €1.80 on orders, making it attractive for customers buying perishable items and making smaller, more frequent purchases.
- To offset the interchange fees charged by card issuers like Mastercard and Visa, Flink also charges transaction fees to consumers.
- In a short period, Flink expanded to multiple cities in Germany, the Netherlands, and France, becoming the fastest German company to reach unicorn status.
- The company attracted significant funding from investors, with recent estimates valuing it at $2.1 billion, and received a substantial round of funding from DoorDash.
Key Points about Flink:
- Founding and Concept Origin:
- Flink is a German on-demand food delivery service founded by Oliver Merkel, Julian Dames, and Christoph Cordes in 2020.
- The co-founders have extensive industry experience from companies like Bain & Company, home24, Foodora, Delivery Hero, and Foodpanda.
- Business Model and Revenue Generation:
- Flink’s business model centers around dark stores and delivering fresh grocery items on-demand.
- It partners with major supermarket giant REWE to be its exclusive supplier, enabling bulk purchases at favorable rates.
- Revenue is generated through marked-up grocery items purchased in bulk and sold individually, boosting profit margins.
- Small, optimized warehouses in lower-income areas help increase operational efficiency.
- Delivery Fee and Transaction Charges:
- Flink charges a delivery fee of €1.80 on orders, making it attractive for customers buying perishable items with smaller, frequent purchases.
- To offset interchange fees from card issuers like Mastercard and Visa, Flink charges transaction fees to consumers.
- Expansion and Funding:
- Flink rapidly expanded to multiple cities in Germany, the Netherlands, and France.
- It became the fastest German company to reach unicorn status within a short period.
- The company received substantial funding, including a round from DoorDash, with recent estimates valuing it at $2.1 billion.
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