Getir to Exit International Markets, Focusing on Turkey for Operations and New Investments
Getir, the once top-grocery delivery startup in Europe, has announced its decision to exit all markets outside of its home country, Turkey. This move will lead to the loss of approximately 1,800 jobs in Germany and 1,500 in the UK. The company has secured fresh capital from Mubadala and G Squared to be utilized solely for its operations in Turkey. Additionally, Getir has acquired its rival, Gorillas, for a fraction of the initial investment in the Berlin-founded startup, signaling a substantial transformation in the industry's landscape. The exit from these markets and the renewed focus on Turkey mark a significant shift for the once highly-regarded sector, which was previously favored by venture capitalists.
Key Takeaways
- Getir, Europe's best-funded quick grocery startup, to exit all markets outside Turkey.
- The company will exit US, Germany, Netherlands, and UK, representing 7% of its revenues.
- Approximately 1.8k warehouse workers in Germany and 1.5k jobs in the UK will be lost.
- Getir raises fresh capital from Mubadala and G Squared, to be deployed in Turkey.
- Getir's exit from European and US markets marks a significant low point for a once VC-favorite sector.
Analysis
The decision by Getir to withdraw from international markets presents a shift in the quick grocery delivery sector, accompanied by substantial job losses in Germany and the UK, and a strategic refocus on Turkey. This shift could be attributed to heightened competition, regulatory obstacles, and the necessity to stabilize finances. The exit signifies a downturn for a sector that was once highly favored by venture capitalists. The affected countries, workers, and investors will face direct consequences, and related industries and regional economies may experience indirect impacts. Future predictions point towards increased sector consolidation, regulatory scrutiny, and a return to profit-driven business models. The rise and fall of Getir accentuates the uncertainties and risks within the fast-paced tech startup world.
Did You Know?
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Quick grocery delivery startup: A type of business specializing in delivering groceries to customers within a short timeframe, typically within 30 minutes or less, utilizing technology such as mobile apps for order placement and a network of urban warehouses to store and distribute products.
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Mubadala: A sovereign wealth fund owned by the government of Abu Dhabi, United Arab Emirates, investing across various industries including technology and showing interest in the grocery delivery sector as evident from its investment in Getir.
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G Squared: A venture capital firm focused on growth-stage technology companies, displaying confidence in the potential of grocery delivery startups through its investment in Getir and its emphasis on technological innovations.