Getir exits U.S., European markets; FreshDirect to continue
Turkish ultrafast delivery platform Getir is refocusing its operations in its home country, but one U.S. subsidiary will remain open.
In a statement emailed to Chain Store Age, Getir said it is leaving the U.S., U.K. and European markets, where it generates 7% of its revenues, to focus on its core market of Turkey (where the company was founded), where it sees the "biggest potential for long-term sustainable growth."
In addition to ceasing operations the U.S. and U.K., Getir is closing down its business in Germany and the Netherlands. However, Getir said in the email that its U.S. FreshDirect subsidiary, which it purchased from Ahold Delhaize USA, the U.S. subsidiary of Dutch supermarket conglomerate Ahold Delhaize, for an undisclosed sum in December 2023 will continue operations.
Meanwhile, the company has also raised a new investment round, led by Mubadala and G Squared.
"Getir will utilize these funds to bolster its competitive position in its core food and grocery delivery businesses in Turkey," the company said in the email. "Getir expresses its sincere appreciation for the dedication and hard work of all its employees in the U..K, Germany, the Netherlands, and the U.S."
Getir has confirmed it will lay off 1,500 U.K. employees. According to TechCrunch, the company will also lay off between 1,100 and 1,800 workers in Germany. It is unclear how many U.S. employees may be affected by this decision, or if any reductions will occur among the 2,300 staffers who joined Getir when it acquired FreshDirect.
As of April 30, 2024, the U.S. Getir website was still live.
What is Getir?
Founded in 2015 and based in Istanbul, Getir offers everyday items, including chocolate, water, dairy, cleaning materials, snack chips, and pet food for delivery to customers within 10 minutes.
Getir made its U.S. debut in Chicago in November 2021 and then expanded operations here to New York City and Boston. However, more recently Getir has reduced staff, scaled back plans for further U.S. growth, and also been offering same-day and next-day delivery services.
Ultrafast delivery struggles to catch on
Ultrafast delivery services focused on getting customers in densely populated urban areas in as little as 15 minutes or less began popping up in the U.S. a few years ago, but many have failed to gain traction.
Getir rivals such as Jokr and Buyk shuttered operations in the U.S. in 2022, with Philadelphia-based Gopuff a rare success story in the space. The ultrafast delivery market is also being squeezed by the increasing speed with which delivery platforms such as Instacart and DoorDash, as well as Tier I retailers such as Amazon and Walmart, are fulfilling online orders.