Following Bankruptcy, Buyk Assets Go Up for Sale

Rapid delivery service Buyk is seeking a buyer for its assets after declaring bankruptcy earlier this year due to funding issues.

Launched in mid 2021 as a spinoff from Russian delivery service Samokat, Buyk operated 39 dark stores across New York and Chicago and offered ultra-fast delivery of grocery items and essentials, with no minimum order costs or delivery fees. Though the company raised $46 million in funding pre-launch, it ran into difficulties when trying to raise further funds this year.

Just as the company reportedly was about to close $275 million in February, its soon to be investors (who were based in or did business with Russian banks) were forced to pull out of the deal as a result of U.S. sanctions on major Russian financial institutions. Buyk’s Russian co-founders attempted to use their own money asbridge financing, but were blocked after Russian Prime Minister Vladamir Putin announced Russian citizens were prohibited from sending money to foreign bank accounts in February 2022.

With capital running out, the company first furloughed 98% of its staff, and then on March 17, announced it had filed for Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

Now the company is moving forward with the sale of its intellectual property, technology and physical assets. All bids are due by Monday, October 10.

Much of the equipment up for sale is “in brand-new, unused condition and remains in the original manufacturers’ packaging,” due to the unexpected nature of the closure, a press release noted. The physical assets include “millions of dollars” worth of coolers, freezers, shelving, pick carts from Buyk’s fulfillment centers as well as office equipment.

The company’s technology assets include its proprietary enterprise software platform, domain name, trademark, mobile application and “additional data.” A press release noted the back-end of the software supports inventory management, marketing efforts, customer service and operations.

“This offering from Buyk is an exciting opportunity for established delivery providers expanding into ultra-fast delivery or for retailers wanting to break into the rapidly growing delivery market,” Brad Goldsmith of Sherwood Partners said in a release. “Acquiring this IP, established technology and robust enterprise system is a fast-track to market entry or expansion.”

The market for ultra-fast delivery remains in flux. While consumers flocked to these services during the pandemic, prompting the launch of numerous new platforms, interest has waned as shoppers have resumed pre-COVID shopping behaviors.

This year has seen a rash of closures. In March, Fridge No More shut down after being unable to find a buyer for its business as well. Meanwhile, delivery provider Jokr announced it would pull back from the U.S. entirely to focus on other global markets, while Gorillas had to drastically reduce its own workforce. Market leader GoPuff has also had to undergo layoffs.

According to grocer e-commerce solution provider Store.ai, consumers struggle with the value of rapid delivery. According to their June 2022 survey of consumers, 57.5% of respondents said they are “not willing to pay a premium fee for ultrafast delivery (within 15 minutes/half an hour)” and less than 2% said that they would be “very likely” to pay such a fee.

“Ultra-fast grocery delivery startups promising delivery to shoppers’ homes within as little as 15 minutes have attracted phenomenal investment over the past couple of years,” the report notes. “However, the ‘need for speed’ they represent caters to a highly specific niche which has not yet made inroads among the general population.”