Getir, the fast-paced delivery scaleup, is facing financial difficulties and implementing cost-cutting measures, including the closure of warehouses in the UK. Employees have revealed that the company is struggling to pay suppliers and has asked office staff to help clear out the shuttered warehouses, raising concerns about their lack of experience in such environments.
Cashflow problems at Getir have resulted in payment delays to suppliers, leaving some out of pocket for several months. Suppliers are now contemplating terminating their partnership with Getir in hopes of receiving payment. The company is exploring additional cost-cutting measures, such as reducing office space and eliminating perks like free breakfasts.
While Getir has not commented on the cash crunch, it has been reported that the company is facing challenges in multiple markets. Last month, Getir announced plans to exit Spain, where it employs nearly 1,600 people. It is also undergoing a redundancy process in the country. In June, the company revealed its intention to leave France and filed for bankruptcy there. Currently, Getir’s operations are focused in the UK, Germany, and its home market, Turkey.
The speedy grocery sector, in which Getir is the largest player in Europe, has faced difficulties due to decreased consumer spending power and a slowdown in venture capital funding. The sector experienced consolidation, with Getir acquiring smaller competitors, notably Berlin-based Gorillas. To date, Getir has raised $1.8 billion from investors including Tiger Global, Sequoia, and Mubadala.