Grocery delivery startup Getir announced on Monday that it is stopping its services in countries outside of Turkey, including the U.K., Germany, the Netherlands, and the U.S. This decision is a significant setback for the online grocery industry, which was once highly anticipated.
The company, based in Istanbul, Turkey, stated in a press release that it is pulling out of its U.S. and European markets to focus its financial resources on Turkey.
It mentioned that it secured a new round of investment led by Abu Dhabi sovereign wealth fund Mubadala and venture capital firm G Squared. This investment aims to strengthen Getir’s position in its core food and grocery delivery businesses in Turkey.
Getir revealed that it currently earns 7% of its revenues from the U.K., Germany, the Netherlands, and the U.S.
The company expressed gratitude for the hard work of all its employees in the U.K., Germany, the Netherlands, and the U.S.
Fading Hopes and Sputtering Ventures
During the peak of the COVID-19 pandemic in 2020 and 2021, online grocery delivery companies were all the rage as people worldwide turned to online services for their shopping needs.
One of the most talked-about companies during this time was Getir, founded in 2015. It has managed to raise a huge $1.8 billion so far. In 2022 alone, Getir raised $768 million, valuing the company at an impressive $11.8 billion.
However, Getir’s valuation has dropped significantly since then, with reports indicating that the company has lost billions of dollars in market value.
Getir received funding from major investors like Mubadala, G Squared, and former Sequoia Capital partner Michael Moritz.
According to a Financial Times report from September 2023, based on unnamed sources familiar with the matter, Getir’s valuation was slashed to $2.5 billion. This represents a substantial 79% discount compared to its previously stated valuation. CNBC couldn’t independently verify the FT report.
The Shifting Focus of Pandemic-Era Grocery Delivery
Getir’s distinctive purple and yellow branding was a common sight on scooters zipping around cities like London and New York, delivering groceries on demand.
Getir, along with similar companies, operates on a model where groceries are packed at local “dark stores” strategically located near densely populated areas of major cities.
The groceries are packed by staff at Getir’s stores and then swiftly delivered by its fleet of drivers, often in as little as 10 minutes.
Another company, Gorillas, which operates a similar model to Getir, faced financial difficulties in 2022 due to high-interest rates and rising inflation. As a result, Getir acquired Gorillas in December 2022 for $1.2 billion.
