Embattled grocery startup Getir exits the U.S. and Europe, will refocus on Turkey

Companies such as 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 quitting international markets including the U.K., Germany, the Netherlands and the U.S., marking a major setback for the once hyped online grocery industry.

The Istanbul, Turkey-based firm said in a statement that it was withdrawing from its U.S. and European markets and would now refocus its financial resources on Turkey.

The company said it raised a new investment round led by Abu Dhabi sovereign wealth fund Mubadala and venture capital firm G Squared “to bolster its competitive position in its core food and grocery delivery businesses in Turkey.”

Getir said it generates 7% of its revenues from the U.K., Germany, the Netherlands and the U.S.

“Getir expresses its sincere appreciation for the dedication and hard work of all its employees in the UK, Germany, the Netherlands, and the U.S.,” the company said.

Pandemic grocery hype fades

Struggling space

Getir’s bright purple and yellow branding had become a common sight on mopeds whizzing around the city to deliver groceries on demand in bustling cities such as London and New York.

Getir’s business, and others like it, rely on a model where groceries are packed at local so-called “dark stores” peppered about a major city in spots that are close to areas with a dense urban population.

Groceries would be packed up by staff at Getir’s stores and then delivered by its fleet of drivers in a matter of minutes. Getir touted delivery times of as little as 10 minutes.

Gorillas, another grocery delivery company with a model similar to Getir’s, faced financial struggles in 2022 when high interest rates and soaring inflation put pressure on its business. The brand was acquired by Getir in December 2022 for $1.2 billion.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Newseum Global