Getir decides to end operations in France

Friday 23 June 2023 09:20 CET | News

Turkey-based delivery platform Getir has decided to end its operations in France, two years after it launched its services in the country.


As stated in the official press release, the decision was based on the administrative hurdles the management of the home shopping express delivery platform had to face in France. A similar decision was announced earlier in 2023 by Flink, one of Getir’s competitors, who also cited the local regulations as the cause for its exit.

The delivery platform's decision was prompted by the final regulatory ruling issued by French authorities in March 2023 when it was revealed that "dark stores," which are city centre locations where delivery products are stored, would be treated as warehouses rather than businesses. As a result, they became subject to regulation by local town halls. If the local urban plan (PLU) decided to prohibit this type of activity at their address, these premises could have been mandated to shut down.

Following its decision to exit the market, it was announced that Getir is looking for a buyer for the entire or part of the group in France. Getir’s latest decision has left its 1,800 French employees in uncertainty. Trade unionists have criticised Getir’s decision and have reportedly insisted on ensuring wage payments until September.

The shock caused by the news was further fuelled by the fact that there were indications from the Getir group that it planned to allocate a sum of EUR 160 million for reinvestment in its operations in France, with the intention of securing their continuity in the upcoming year. The company also increased its budget for its redundancy plan. However, ultimately, Getir made the decision to quit the French market.

Delivery platform Getir has announced its decision to call off its operations in France amid new restrictive regulations and its struggle with profitability.


Getir’s struggle in France and its development strategy

The news comes after the fact that, in May 2023, the delivery platform announced its plans to cut 900 out of the 1,800 employees it had in France. The reorganisation was motivated by the business’s struggle with profitability as it had previously been placed in receivership at the end of March.

Moreover, despite the overall market growth, the group that owns Getir (alongside Gorillas and Frichti) had reportedly totalled approximately EUR 200 million in debt at the end of March 2023.  

The company's current outlook may appear unfavourable; however, the situation has not always been as bleak. In 2022, the delivery platform announced it acquired French rapid delivery startup Frichti and Gorillas Technologies GmbH, two of its rivals, in a strategic move to consolidate its position in the industry.

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Keywords: delivery, payments , inflation, regulation, acquisition
Categories: Payments & Commerce
Companies: Getir
Countries: France
This article is part of category

Payments & Commerce


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