Fast-grocery delivery company Getir is making a strategic shift, refocusing its efforts on its home turf of Turkey.
This move involves exiting operations in the UK, Germany, the Netherlands, and the US, marking a significant retreat from its ambitious international expansion plans.
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The decision comes amidst a period of intense competition and a wider slowdown in the rapid grocery delivery sector.
Getir’s international operations only accounted for 7% of its revenue, but the company faced mounting pressure from investors to kerb losses.
The global cost-of-living crisis has further dampened demand for Getir’s services, which hinge on delivering groceries within minutes at a premium price point.
Earlier this month, Getir was reportedly in discussions regarding a potential financial restructuring.
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By GlobalDataSpecifically, Sky News reported that the company was exploring options with its primary investors and it could lead to a division of the rapid delivery group, withdrawal from several markets, or the execution of an emergency restructuring process.
Despite its international retreat, Getir has reportedly secured fresh funding from existing investors to bolster its domestic operations.
This suggests a strong belief in the long-term potential of the Turkish market.
The company will also retain its recently acquired US subsidiary, FreshDirect, which operates independently.
Getir’s scaling back reflects the broader struggles of the rapid grocery delivery sector.
Many of its competitors have faced similar challenges, with some companies merging, downsizing operations, or even folding entirely.
Established takeaway delivery players such as Deliveroo and Uber Eats have also entered the fray, offering grocery delivery alongside restaurant meals.
Additionally, some major supermarket chains have developed their own in-house grocery delivery services, further saturating the market.
The impact of Getir’s retreat will likely be most acutely felt in its departing markets. While the company hasn’t confirmed exact figures, estimates suggest significant job losses, with approximately 1,500 positions potentially affected in the UK alone.
Getir’s story serves as a cautionary tale for startups in the hyper-competitive world of rapid delivery.
The initial pandemic boom for grocery delivery services appears to be fading, and long-term profitability remains a challenge for many companies.
Getir’s decision to focus on its core Turkish market highlights the need for a strategic and sustainable approach in this evolving landscape.
