(Bloomberg) — Rapid delivery startup Jokr is pulling back from its US operations to focus on its core Latin America business, joining a growing number of similar companies that are paring down and prioritizing profitability amid fading investor enthusiasm.
Jokr said it will end delivery operations in Boston and New York, which include a network of nine micro-fulfillment centers out of about 200 worldwide.
As part of the restructuring, the company will also cut about 50 workers from its 950-member office staff globally.
“We have decided to stop our business activities in the US for now which have lately only accounted for about 5% of our business,” Chief Executive Officer Ralf Wenzel said in a statement.
“Latin America is particularly underpenetrated and underserved, that’s why Jokr has put its focus and emphasis on the Latin American opportunity since the beginning.”
The startup will retain some staff in New York and is exploring selling or closing its existing fulfillment centers in the US.
Jokr loses less than $10 million a month across its Latin American markets, and plans to invest further in the region, including through potential mergers and acquisitions.
Along with Jokr, competitors such as Getir and Zapp have also laid off workers and pulled out of less profitable markets as investors shift from favoring money-burning fast-growing companies to ones that generate profits.
Jokr, which last raised funding at a $1.2 billion valuation in December, has said it has enough money on hand to continue operating for two years and expects to reach break-even across in about 18 months.
Jokr offers its service delivering consumers groceries within minutes across Brazil, Mexico, Colombia, Chile and Peru.
It has previously also pulled back from offering its service in Europe.
In May, Jokr rolled out a media platform to sell targeted advertising in a separate bid to get closer to profitability.
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