Getir, Once Valued at $12 Billion, Shuts Down Operations in U.S., U.K., and Europe to Focus on Turkey

Getir, Once Valued at  Billion, Shuts Down Operations in U.S., U.K., and Europe to Focus on Turkey

Title: Getir’s Downfall: The Challenges of the “Instant Delivery” Industry

Image Credits: Angel Garcia/Bloomberg / Getty Images

The rapid rise and fall of Turkey’s “instant delivery” giant, Getir, have sent shockwaves through the quick commerce industry. Once valued at close to $12 billion, Getir recently announced its decision to shut down operations in the U.S., the U.K., and Europe to focus solely on its home market of Turkey. This sudden retreat marks a bitter end to the company’s ambitious expansion strategy, which included raising billions of dollars and acquiring struggling competitors to establish its dominance.

The closures will undoubtedly impact thousands of jobs across the affected markets. However, Getir claims that the financial impact will only amount to 7% of its revenues. To extend its runway, the company also plans to secure new investments as a lifeline. Its primary goal now is to redirect its financial resources towards Turkey.

Getir’s struggle is not unique within the instant delivery market. Another key player, Flink, has been raising funds to support its consolidation efforts in Germany. The instability within the market has created uncertainties for various companies, compelling some to explore mergers or seek additional funding.

The pandemic initially presented a window of opportunity for Getir to thrive. As consumers turned to online shopping due to safety concerns and supply chain disruptions, the demand for instant delivery services skyrocketed. Getir, capitalizing on this trend, raised substantial investments and acquired competitors to solidify its position. However, with pandemic restrictions easing and normal shopping behaviors resuming, the market dynamics shifted once once more.

The writing was on the wall when Getir faced significant challenges in 2023. The company had to reduce its staff by 14% and abandon expansion plans to stabilize its business before seeking further funding. It subsequently exited the markets in Spain, Italy, and Portugal. Despite generating $3.3 billion in revenue in 2023, Getir had yet to achieve positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in any geographical region.

While Getir’s downfall is disheartening, it may not be the last we see within the instant delivery industry. As venture market conditions, the global economy, and consumer behavior continue to evolve, industry players are reevaluating their international strategies and

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