In France, Flink, a home shopping platform with 218 employees, announced its liquidation on Friday after declaring a cessation of payments to the Paris commercial court. Despite having faced challenges due to inflation, regulatory pressure, and lack of investor interest in the sector, Flink France had previously been placed in receivership in June before being taken over by New Flink France in September.
In March 2023, strict regulations on “quick commerce” led to significant challenges for players in the sector. Companies like Getir, Frichti, and Gorillas faced liquidation or withdrawal from the French market. Despite these setbacks, the quick commerce market is expected to continue growing, with potential for significant turnover in the future.
Players in the quick commerce sector faced intense competition and aggressive promotions that led to economic challenges for many companies. The model operated at a loss to retain customers and gain a competitive edge. While some companies did not survive this competitive landscape, others have positioned themselves in the niche to continue capitalizing on the growing market.
Overall, recent bankruptcies and withdrawals may lead to changes in the quick commerce sector as companies adapt to shifting market dynamics and regulatory environments. It remains unclear how long it will take for Flink France’s liquidation process to unfold and what impact it will have on other players in the industry.
