Delivery Firm Getir Pulls out of Global Markets to Consolidate its Presence in Turkey

Getir has announced its decision to withdraw from global markets including the UK, Germany, Netherlands, and the United States.

The delivery grocery firm will redirect its efforts towards consolidating its position in its home market of Turkey.

This strategic move marks a significant pivot for Getir, once a prominent player in the fast grocery delivery industry, as it navigates challenges stemming from heightened competition and evolving market dynamics.

The decision to exit key international markets reflects the broader shakeout occurring within the fast grocery delivery sector, which experienced rapid growth during the Covid-19 pandemic but has since encountered significant headwinds. As demand for rapid home deliveries wanes and competition intensifies, Getir's strategic realignment underscores the need for adaptability and focus in an increasingly competitive landscape.

The closure of operations in the UK, Germany, the Netherlands, and the US raises questions about the impact on employment, with the fate of thousands of jobs hanging in the balance. Getir's workforce reduction initiatives in recent years, including the cut of 2,500 jobs in 2021, highlight the challenges facing the company as it grapples with shifting market dynamics and operational constraints.

The decision to streamline operations and refocus on its core market of Turkey comes amidst a series of strategic moves aimed at optimizing efficiency and enhancing profitability. While retaining its US arm, FreshDirect, Getir aims to rationalize its global footprint and prioritize markets where it can achieve sustainable growth and profitability.

Founded in 2015, Getir quickly rose to prominence as one of the leading players in the fast grocery delivery space, leveraging technology and innovation to offer customers the convenience of ultra-fast deliveries and attractive discounts. However, the industry landscape has evolved rapidly, with consolidation and market exits becoming increasingly prevalent among Getir's competitors.

The acquisition of German rival Gorillas in a $1.2 billion deal in 2022 and the earlier purchase of the UK's Weezy underscore Getir's ambitious expansion strategy. However, mounting operational costs and subdued demand have prompted the company to reassess its global footprint and focus on markets where it can achieve sustainable growth and profitability.

Despite its ambitious growth trajectory, Getir has faced challenges in maintaining its valuation amid intensifying competition and operational constraints. While initially valued at up to $11.8 billion, the company's valuation was slashed to $6.5 billion in a funding round in April last year, underscoring the volatility and uncertainty inherent in the fast grocery delivery sector.

The competitive landscape in the grocery delivery market remains fierce, with major players such as Deliveroo, JustEat, and Uber Eats expanding their offerings to include grocery delivery services. Additionally, traditional retailers like Tesco, Sainsbury's, and Ocado have ramped up their in-house delivery capabilities to meet evolving consumer preferences.

In the midst of this competitive environment, Getir's decision to refocus on its core market of Turkey reflects a strategic imperative to consolidate its market position and drive sustainable growth. As the company navigates the challenges and opportunities inherent in the fast grocery delivery sector, its ability to adapt and innovate will be critical to its long-term success.

While the closure of international operations may mark the end of a chapter for Getir, it also signals a new beginning as the company redoubles its efforts to capitalize on opportunities in its home market. With a renewed focus on efficiency, innovation, and customer satisfaction, Getir aims to solidify its position as a leader in Turkey's rapidly evolving grocery delivery landscape.