Companies like Getir and Gorillas promise to deliver items to shoppers’ doors in as little as 10 minutes.
Angel Garcia | Bloomberg via Getty Images
Grocery delivery startup Getir announced on Monday that it is exiting international markets including the UK, Germany, the Netherlands and the US, marking a major setback for the once-vaunted online grocery industry.
The Istanbul, Turkey-based firm said in a statement that it is withdrawing from its US and European markets and will now redirect its financial resources to Turkey.
The company said it has raised a new investment round led by Abu Dhabi’s sovereign wealth fund Mubadala and venture capital firm G Squared “to strengthen its competitive position in its core food and grocery delivery business in Turkey”.
Getir said it generates 7% of its revenue from the UK, Germany, the Netherlands and the US
“Getir expresses its sincere appreciation for the dedication and hard work of all its employees in the UK, Germany, the Netherlands and the US,” the company said.
The grocery pandemic is fading
Getir was one of the buzziest online grocery delivery companies at the height of the Covid-19 pandemic in 2020 and 2021, when people around the world flocked to online shopping services.
The company, which was founded in 2015, has raised a whopping $1.8 billion to date. Getir raised $768 million of that amount in 2022, at an extremely high valuation of $11.8 billion.
Since then, Getir’s valuation has fallen significantly, with billions of dollars reportedly being wiped from its market value.
Getir has raised funds from key backers including Mubadala, G Squared and former Sequoia Capital partner Michael Moritz at a $2.5 billion valuation, as of September 2023. Financial Times reportciting unnamed sources familiar with the matter.
That would represent a hefty 79% discount to Getir’s previously disclosed valuation. CNBC was unable to independently verify the FT report.
Struggling space
Getir’s bright purple and yellow brands have become a common sight on mopeds zipping around town to deliver on-demand groceries in busy cities like London and New York.
Getir’s business and others like it rely on a model where groceries are packaged in local so-called “dark stores” dotted around a major city in locations that are close to areas of dense urban population.
The groceries will be packed by staff at Getir stores and then delivered by its fleet of drivers within minutes. Getir advertised a delivery time of just 10 minutes.
Gorillas, another grocery delivery company with a similar model to Getir, faced financial difficulties in 2022 as high interest rates and rising inflation put pressure on its business. The brand was acquired by Getir in December 2022 for $1.2 billion.
https://www.cnbc.com/2024/04/29/grocery-startup-getir-to-exit-us-europe-and-uk-refocus-on-turkey.html
