On Friday, Flink, a home shopping platform with 218 employees in France, announced its liquidation after declaring a cessation of payments to the Paris commercial court. The company faced numerous challenges due to inflation, regulatory pressure, and lack of investor interest in the sector.
In June 2023, Flink France was placed in receivership before being taken over by New Flink France in September. Despite efforts to maintain the workforce, the difficult financial context and regulatory pressures led to the ultimate decision to cease operations. The recent disappointments in the quick commerce sector also contributed to the decline of the company.
In March 2023, strict regulations on “quick commerce” caused significant challenges for players in the sector. Companies like Getir, Frichti, and Gorillas faced liquidation or withdrawal from the French market. However, despite these setbacks, the quick commerce market is expected to continue growing with potential for significant turnover in the future.
The intense competition and aggressive promotions experienced by players in the quick commerce sector have led to economic challenges for many companies. To retain customers and gain a competitive edge, companies operated at a loss. Although some companies did not survive this competitive landscape, others have positioned themselves in niche markets to continue capitalizing on growing demand.
Overall, recent bankruptcies and withdrawals may result in changes within the quick commerce sector as companies adapt to shifting market dynamics and regulatory environments to remain relevant in the industry.
