Getir’s Rapid Expansion Grinds to a Halt
In a stunning reversal, Turkish grocery delivery firm Getir announced its retreat from international markets, marking a significant setback for the industry. The Istanbul-based company will now focus its resources on Turkey.
The End of a Hype Cycle
Getir’s rapid expansion during the height of the pandemic propelled it to become one of the most-funded grocery delivery startups. With .8 billion raised, including a whopping 8 million in 2022, Getir enjoyed a market valuation of .8 billion.
However, the company’s valuation has plummeted, with reports indicating billions of dollars wiped off its market cap. A recent Financial Times report suggests a significant funding round at a valuation of .5 billion, reflecting a 79% discount.
A Glut in the Market
Getir’s once-competitive business model revolves around “dark stores” strategically placed in urban areas. Customers could order groceries and have them delivered within minutes, a service that became increasingly popular during lockdowns.
However, the market witnessed a surge in similar services, including Gorillas. The competition and rising costs, particularly high interest rates and soaring inflation, took their toll. Gorillas faced financial difficulties in 2022 and was acquired by Getir for .2 billion.
Bright Lights, Dim Prospects
Getir’s distinctive purple and yellow branding once dominated the streets of London and New York, a testament to its rapid expansion. But the company’s aggressive growth strategy has proven unsustainable.
The company’s announcement underscores the challenges that delivery startups face in maintaining growth and profitability. The rapid pace of market entry, coupled with the impact of macroeconomic pressures, has created a crowded and uncertain landscape for these businesses.
Shifting Focus
Getir’s retreat from international markets marks a significant shift in the industry. The company will now focus solely on its home country, Turkey, where it still generates the vast majority of its revenue.
Whether Getir can regain its former glory in the face of competition and economic headwinds remains to be seen. The company’s decision serves as a reminder that even during times of rapid growth, startups must carefully manage their finances and strategically plan for the future.
Data sourced from: cnbc.com
