Once hailed as the potential Amazon of rapid grocery delivery with a valuation peaking at $12 billion, Getir has now confirmed the closure of its operations in the U.S., Germany, the U.K., and the Netherlands, choosing to focus solely on its original market in Turkey where it began in 2015.
During its peak, Getir’s allure was undeniable: the promise of delivering groceries within 15 minutes at almost any hour, which had investors clamouring for a piece of the action. From its first investment in 2017, the company attracted more than $2.3 billion by 2023, with a staggering $768 million secured in 2022 alone, while also absorbing several competitors.
The trajectory was initially promising. Getir’s app downloads skyrocketed from 5.2 million in 2020 to 24.2 million in 2021, although this figure fell to 6.5 million by 2023, as per AppFigures. Its annual revenue also reflected a high followed by a decline: from $1 billion in 2021 to $800 million in 2023, according to Business of Apps.
The expenditure, however, was significant. Media reports suggested monthly costs at around $100 million. Getir’s business model, acting both as retailer and distributor, involved stocking its own stores and handling deliveries, a method far pricier than typical last-mile delivery services.
The news of Monday did not surprise many within the industry, given Getir’s recent struggles. It had previously withdrawn from Spain, Italy, and Portugal as early as last July and had cut its workforce by 10 percent over the past year.
Nonetheless, Getir remains optimistic about its core market. It has recently secured a new investment round led by an Abu Dhabi fund aiming to bolster its presence in the Turkish food and grocery delivery sector. This move comes even as the company admits that the markets it has exited only accounted for 7 percent of its total revenue.
As for international customers, the memory of Getir might linger as another fleeting convenience of the Covid era, akin to face masks and uneasy elevator interactions. The rapid expansion may have been its undoing, but the joy of having Oreos delivered within 15 minutes was undeniable, suggesting Getir was onto something significant.