Grocery delivery startup Getir revealed on Monday its decision to exit international markets, including the U.K., Germany, the Netherlands, and the U.S., signaling a significant setback for the once-vaunted online grocery industry.
The Istanbul-based company announced its withdrawal from the U.S. and European markets, redirecting its financial resources toward Turkey.
Getir disclosed a new investment round, spearheaded by Abu Dhabi’s sovereign wealth fund Mubadala and venture capital firm G Squared, aiming to fortify its competitive stance in Turkey’s core food and grocery delivery sectors.
While acknowledging the contributions of its employees in the U.K., Germany, the Netherlands, and the U.S., Getir expressed gratitude for their dedication and hard work.
Initially celebrated as a pioneering force in online grocery delivery, especially during the peak of the Covid-19 pandemic, Getir’s trajectory has faced a downturn.
Founded in 2015, the company has amassed a substantial $1.8 billion in funding to date, with $768 million secured in 2022 at a valuation of $11.8 billion.
However, its valuation has since experienced a sharp decline, with reports indicating significant erosion in its market value.
Despite past support from key investors like Mubadala, G Squared, and ex-Sequoia Capital partner Michael Moritz, reports suggest a considerable devaluation, with estimates suggesting a 79% reduction compared to previous valuations.
Getir’s operational model, recognizable by its distinctive purple and yellow branding, relied on swift grocery delivery facilitated by local “dark stores” placed strategically in densely populated urban areas.
Yet, challenges in the economic landscape, including high interest rates and inflation, have strained its business model.
Similar woes were encountered by Gorillas, another grocery delivery firm, in 2022, ultimately leading to its acquisition by Getir for $1.2 billion in December of the same year.
