Getir, the rapid grocer known for its quick delivery of groceries and daily essentials, is facing significant challenges in the UK and Europe. As part of its cost-cutting measures, the company has put up dozens of delivery bikes, chiller cabinets, delivery boxes, and shelving for auction, following the closure of its dark stores in the UK.
The listing, displayed on the website of commercial property agent Sanderson Weatherall and reported by The Grocer, includes a range of items that must be cleared by the end of the month. Among the lots are numerous boxed and unused chest freezers.
The situation has been further complicated by reports from several suppliers claiming that Getir is experiencing significant delays in payments for stock. This has prompted some suppliers to put their orders on hold until they receive payment.
The auction and payment issues come at a time when Getir is scaling back its operations in Europe. Last month, the company made the decision to withdraw from Spain and Portugal and laid off its entire workforce in those countries. Prior to that, it announced the cessation of operations in France and filed for bankruptcy there. Reports also indicate that the company plans to exit Italy and the Netherlands.
As part of its efforts to stabilize its financial situation, Getir is actively seeking new funding, aiming to secure around $500 million. It is reportedly close to reaching an agreement with Abu Dhabi sovereign wealth fund Mubadala, an investor in the company since 2021.
Despite these developments, Getir is facing growing concerns over its solvency. Sky News reported “intensifying rumors about its solvency” and raised the possibility of the company putting its UK operations into administration.
In response to these reports, a Getir spokesperson refuted some claims but declined to provide further details.
The struggles faced by Getir are not unique to the company. The rapid grocery delivery sector, characterized by quick delivery times and a focus on convenience, has seen a wave of consolidation and closures over the past year. Companies like Getir and its US rival Gopuff have been hit by the challenges of an unprofitable business model and a high cash burn rate.
The industry expert and former Amazon executive Brittain Ladd commented on the situation, expressing skepticism about the viability of the rapid grocery delivery business model. Ladd stated, “Rapid grocery delivery is the worst business model ever created. It is the only business model that guarantees money will be lost on every order and delivery.”
As Getir grapples with financial pressures and mounting uncertainties, it remains to be seen how the company will navigate the challenging landscape of the rapid grocery delivery sector. With ongoing efforts to secure funding and address operational issues, the future of the once-promising player in the industry hangs in the balance.