The following is my opinion.
I have stated clearly for over two years that Getir, which has a valuation of $12B, is woefully overvalued. I don’t believe Getir was ever legitimately worth $12B. I have also been consistent in stating that Getir will only be worth between $1B to $3B by Q1 or Q2 2024. I believe my prediction is wrong. I now believe that Getir may have already achieved a valuation of only $1B to $3B. I came to this conclusion based on my research, a review of corporate documents, and based on calls that I’ve had with current and former Getir executives.
Like every rapid grocery delivery company, Getir has too high of a cash burn rate ($80M to $100M monthly) and the business model is broken. I’ve written more articles and posts on this topic than anyone. 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. Note: DoorDash recently ended their 15-minute rapid grocery delivery service. Rapid grocery delivery is similar to a business model used by a company in the USA called Kozmo that went out of business in 2001.
I warned Getir and other rapid grocery delivery companies that countries in Europe were tired of their operations and that laws barring the use of micro-fulfillment centers (MFC) were going to be implemented. I referred to the MFCs in Europe as “opium dens and crack houses” due to their dirty appearance and the fact people milled about the facilities at all hours of the day and night. I stated that the industry had to do better. I was right. Many countries in Europe have taken steps to drive out rapid grocery delivery companies by banning MFCs.
Getir recently departed Spain, Portugal and France. Reports are appearing that Getir is making plans to depart Italy and the Netherlands. Worse, Sifted is reporting that Getir is rapidly shutting warehouses in the UK as it scrambles to cut costs, amid a crunch that has left it struggling to pay suppliers, according to employees at the company. “The situation is that there is no cash,” one employee told Sifted. I cannot independently confirm the validity of the story.
I’ve also been told by sources that Getir is trying to raise $500M from one of its investors Mubadala. In my opinion, I strongly advise Mubadala, or any other Getir investor, not to invest any more capital into Getir without insisting that changes be made among the senior executives at Getir, and a skilled advisor be hired to review the strategy and operations at Getir.
Getir is in a world of hurt. If Getir can’t raise capital, they will go out of business in the next 3 to 9 months.
I wish Getir the best.