Subscribe
|
|
|
|
|
|
|
News

Getir ends its operations in Italy, Spain, and Portugal

Friday 28 July 2023 14:46 CET | News

Turkey-based food delivery platform, Getir has announced it has decided to end operations in Italy, Spain, and Portugal stating that it is finalising its funding round.

Getir has explained that the withdrawal from these three European countries (Italy, Spain, and Portugal) will enable them to centre their remaining financial resources on markets with opportunities for profitability and sustainable growth. The company has stated that operations will continue in the UK, the US, Germany, the Netherlands, and Turkey, as these markets are responsible for generating 96% of the company’s revenues.

The food delivery platform took a similar decision in June 2023, when it decided to exit the French market. Where it filed for bankruptcy. This prompt was due to a ruling issued by French authorities that the stores would be managed as warehouses rather than businesses. This decision, however, did not come as a surprise because Getir had previously announced plans to let off 900 of its 1,800 employees in France. The reorganisation was prompted by the company's struggle with profitability after it was put under receivership at the end of March.

Turkey-based food delivery platform, Getir has announced it has decided to end operations in Italy, Spain, and Portugal stating that it is finalising its funding round.

Getir’s growth during the COVID-19 pandemic

In the last few years, Getir has been expanding its service all across Europe and the US. In March of 2022, the company closed a USD 768 million funding round, reaching an estimated worth of USD 11.8 billion.

This food delivery platform saw major growth during the COVID-19 pandemic and even announced buying its German rival Gorillas in a deal estimated at USD 1.2 billion at the end of 2022. However, Getir has been affected as the post-pandemic impact of customers returning to shop in actual stores has been stronger than anticipated. Consumer preferences and investor priorities have been evolving ever since the height of the pandemic and Getir is now facing a cash crisis.

Delivery services seeing a post-pandemic crash

The COVID-19 pandemic gave delivery startups the opportunity to grow their business to new heights. As shared spaces and essential areas became less and less accessible, consumers got used to the idea of making online orders for their everyday needs – such as groceries or toiletries. Speedy delivery services like Getir, Gorillas, and Flink were then important and desirable by consumers, leading to quick growth. This business expansion continued well into the early months of 2022.

However, as cities and countries slowly started to loosen their restrictions, customers also started going back to their normal routines. This meant that they abandoned delivery apps and continued with in-person shopping.

In May 2022, Gorillas (before being acquired by Getir) announced its exit from Italy, Spain, Denmark, and the Netherlands as well as laid off about half of its staff, stating that they would be focusing on building a profitable business.

As 2022 was coming to an end, only three major players were left in Europe's speedy food delivery sector: Turkey-based Getir, Germany-based Flink, and US-based Gopuff. To this day, all of these players are still facing the challenges of laying off riders and closing warehouses. Another challenge presents itself as their main consumer base is now continuously opting for savings over convenience. The need for these services is dropping well into 2023 and these companies grapple for a way to remain on top.

Source: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: ecommerce, COVID-19, pandemic, delivery
Categories: Payments & Commerce
Companies: Getir
Countries: Italy, Portugal, Spain
This article is part of category

Payments & Commerce

::: more

Getir

|
Discover all the Company news on Getir and other articles related to Getir in The Paypers News, Reports, and insights on the payments and fintech industry:





Free Headlines ::: subscribe now
RSS ::: follow ThePaypers via RSS ::: connect
LinkedIn ::: connect with ThePaypers on LinkedIn ::: connect
Twitter ::: follow ThePaypers on Twitter ::: follow
Facebook ::: like ThePaypers on Facebook ::: like