Reports from Handelsblatt suggest that Getir, the rapid delivery service, is thinking about pulling out of the Netherlands and Italy. The company is facing significant losses and aims to attract more investments to stay afloat. While Getir has not officially commented on the matter, the move is driven by the need for additional funding and cost-cutting measures.
Based in Istanbul, Getir made headlines earlier this year when it acquired Gorillas, its German rival. The company has already withdrawn from Spain, Portugal, and France. If it proceeds with exiting the Dutch and Italian markets, Getir will limit its operations to Turkey, the United Kingdom, the United States, and Germany, according to Handelsblatt.
To sustain its activities, Getir is actively seeking more funding as it reportedly burns through $80 to $100 million every month. Its major lender is Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund. Pitchbook data shows that Getir has raised $2.3 billion in venture capital since its establishment. Management is now aiming for an injection of $500 million, but would settle for $250 million if available.
The rapid grocery delivery sector, which experienced significant growth during the pandemic, is now facing challenges due to economic uncertainty and high inflation. Consumers are tightening their purse strings, resulting in a slowdown in the market.
In an effort to reduce costs, Getir has been experimenting with a franchise model in Germany, where independent owners can operate their dark stores, as per Handelsblatt.
As Getir navigates the changing dynamics of the grocery delivery market, its decisions regarding market exits and funding will shape its future trajectory. Stay tuned for further updates on this evolving situation.