The name “Getir” might not ring a bell for most UK shoppers—and with good reason. After just two-and-a-half years in operation, the Turkish fast grocery delivery startup abruptly shut down its UK business, leaving many to wonder why.
Getir, which made its name by promising ultra-fast grocery deliveries, announced in April 2024 that it would be pulling out of the UK, US, Netherlands, and Germany. The company stated its desire to focus on its home market, Turkey, where it felt it could better leverage its resources to ensure profitability.
It was a rapid exit for a company that was once at the forefront of the quick commerce revolution. So, what went wrong for Getir? Let's dive into the key reasons behind its retreat.
Overexpansion and Growing Pains
During the COVID-19 pandemic, Getir expanded at breakneck speed, launching in multiple countries, including the UK, in 2021. In 2022, it even acquired rival firm Gorillas for a hefty £1.2 billion, setting up Europe’s biggest store network for rapid grocery deliveries across the UK, Germany, and the Netherlands.
Initially, this expansion seemed like a smart move, driving Getir's valuation to nearly $12 billion (£9 billion) by early 2022. But as lockdown restrictions eased, things started to unravel. The demand for online grocery services began to dwindle, and new competitors crowded the market. The swift pace of growth had overstretched the company's resources.
Martin Newman, an expert in online retail, explained the flaw in their strategy: “They’d have been better off focusing on one or two key markets, getting their model right, and then scaling up from there.”
A Shrinking Market
Lockdown restrictions were a pivotal period for Getir—people couldn't easily access supermarkets, so they turned to quick commerce services like Getir. Before the pandemic, just 10% of grocery shopping was done online. By the height of lockdown, that number had shot up to 16%, and even major supermarkets scrambled to adapt, adding delivery slots to meet the surging demand.
But this surge didn't last. As restrictions eased, people returned to physical stores, and the market corrected itself. By 2022, online grocery shopping had declined by 12%, and studies revealed growing dissatisfaction with online grocery services—ranging from too many substituted items to limited delivery slots.
Newman also pointed out that the cost-of-living crisis had put extra pressure on consumers. "Why would you pay extra for rapid delivery when you don't need to?" he said. With demand slowing, private equity and venture capital funding—essential for Getir's survival—dried up.
Competition Heats Up
Getir wasn't the only quick commerce brand to face difficulties, but its competitors had more resilient models. Major players like Deliveroo and UberEats continued to perform well—Deliveroo's revenue hit an all-time high of £2.03 billion in 2023. These companies not only delivered groceries but also restaurant food, convenience items, and other services, giving them more diversity and adaptability.
Supermarkets also caught on, launching their own rapid delivery services like Tesco's Whoosh and Sainsbury's Chop Chop, while smaller firms such as DoorDash, GoPuff, and Zapp further added to the competition. Getir tried to keep up by heavily discounting products, but price wars only squeezed profit margins further.
Mounting Costs and Financial Woes
Financially, Getir was struggling. In 2022, it lost £168 million—45% more than the previous year—and its operational costs far outpaced revenue growth. Other quick commerce startups like Zapp and GoPuff were also reporting heavy losses, but Getir's situation became particularly dire when its valuation plummeted from $11.8 billion to $2.5 billion in just a year.
Leadership and Internal Struggles
Behind the scenes, there were tensions between Getir's founder, CEO Nazim Salur, and its investors. There were disagreements about pricing strategies and product offerings, with investors concerned that heavy discounting conflicted with the company's premium brand image.
To complicate matters further, Getir's acquisition of Gorillas added operational headaches. Integrating Gorillas' technology, warehouses, and staff into Getir's system was challenging, leading to increased costs and organisational chaos. Key executives departed, including the COO and CFO of Gorillas, and more upheaval followed with a round of mass redundancies that saw around 300 staff let go.
A Rapid Rise and a Faster Fall
Getir's story is one of rapid growth, overambition, and harsh market realities. In its rush to dominate the quick commerce space, it faced overwhelming challenges that ultimately forced it to scale back and refocus on its home market. The era of easy money and pandemic-driven demand has passed, and companies like Getir are learning that in the world of rapid grocery delivery, sustainable growth is far more elusive than speedy expansion.
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