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Getir pulls out of US, UK, Europe to focus on Turkey; 6,000+ jobs impacted | TechCrunch

Getir pulls out of US, UK, Europe to focus on Turkey; 6,000+ jobs impacted | TechCrunch

According to his business concept, Turkey's magic of “instant delivery”. Gettier rose quickly. Now, with the instant commerce industry in free fall, it's nosediving just as fast. On Monday, the company – once worth close to $12 billion – announced it would close its operations in the US, UK and Europe to focus solely on its home market of Turkey.

The move marked a bitter end to the company's highly aggressive expansion strategy that saw it raise billions of dollars to grow organically as well as position itself as the market leader. He gathered a large number of aggressive, yet struggling, competitors. The closures appear to affect at least 6,000 jobs in the closed markets, but – according to the company – only 7% of its revenue. Along with the closure, the company said it would get a fresh injection of investment as a lifeline to expand its runways.

“This decision will allow Gettier to focus its financial resources on Turkey,” a company statement said.

Gettier isn't alone in the space raising money to stay afloat while pulling back from global projects. Earlier this month, reports surfaced. blinkA former rival of Gutierrez in Germany, is raising about $106 million, about a third of which has been secured so far. This comes as Flink is also consolidating its position. Along with the fundraising leak, the company also apparently “finishedHis operations in France.

More details, including finances, below.

Dismissal: Tellingly, Gettier only officially announced the 1,500 cuts in the UK in a brief announcement it sent to journalists: no details on jobs affected elsewhere. However, there were reports Surfacing In the past few days it has started sending notices to 1,800 employees in Germany – Guerrilla's headquarters (which it Acquired at the end of 2022.). We're told by sources close to the company that the number is closer to 1,100 (a figure that may include contractors).

Meanwhile, when Getir Acquired FreshDirect in the US. – Just six months ago, in November 2023 – it picked up 2,300 employees. Add these various numbers together and you get about 6,000, although since Gettier was already active in the US before the acquisition, it could be higher. A year ago, the company employed 32,000 people.

Its epidemic window of opportunity: The move is a serious chapter for the startup, which was founded in 2015 and saw great traction in Turkey before the pandemic – Getir means 'bring' in Turkish. This led to aggressive investment and expansion that peaked during Covid-19, when consumers were shopping less in person — partly to reduce infections, partly because of supply issues, entries It became really difficult to shop in person due to long lines and more.

Just as ride-hailing companies like Uber have aggressively scaled the globe to fund aggressive growth and competitive battles, so has Gettier: Between 2017 and its first outside investment in September 2023, it raised Sequoia raised more than $2.3 billion from approximately 36 investors including Tiger Global, Silver Lake, Mubadala, Goodwater, G Squared and A*.

It also made some aggressive acquisitions of rivals to bolster its market position—but, notably, it was not just a power move, but a brutal one for other struggling, cash-strapped players in the market. There was a way out of the race. .

In addition to FreshDirect and Gorillas, Gettier started operations. Spain, Italy And United Kingdom At bargain prices. He was also reportedly interested at one point. Zip in Britain and Flink in Germany, so it certainly saw itself as a consolidator in a troubled market. This was a strategy that GoPuff, Gettier's biggest global competitor, also took. Today's news leaves easy water for GoPuff in the US and UK.

Its Turkish window of opportunity: This is a serious chapter, but not the last. Gettier also announced that it will raise fresh money to double its domestic market, led by Mubadala and G-Squared.

Gettier didn't say who and what is participating, nor how much he's raising, nor whether it's equity or debt, so it's hard to say whether the company will have some runway and a working one. What does this mean other than to give an opportunity to focus on the market?

We have reached out to some of its previous investors, Sequoia and Tiger Global, to see if they would comment on whether they are now remaining investors in the company, or whether they have cashed out. have done.

At this point, the strategy for the big players in the instant grocery delivery market seems to be: Accept that our international strategy wasn't the best of ideas, and just focus on our core markets for now.

The writing is on the wall: Gettier, like its peers in the quick delivery market, has been struggling for some time. I May 2023, it cut 14% of staff and canceled the bulk of its geographic expansion plans as it tried to right-size the business before raising more funds. A few weeks after that, it left. Spain, Italy and Portugal In July 2023. At the time, it was well understood that it shut down operations because those markets weren't growing, but Gettier was really trying to close another round of funding, so the losses in that context. It makes sense to reduce the operations running in

Documents shared with TechCrunch show that, for the calendar year 2023, the company earned $3.3 billion, with the US and Europe (including the UK) contributing about $1 billion of that for the year. . (It's not clear from Gettier's statement what the 7% figure relates to. We're asking.) From the documents we've seen, as of the end of last year, the company was not EBITDA positive in any of its geographies.

Big, bad news in a chaotic market for express delivery services, but given the state of the venture market these days, the current economy and consumer behavior — yes, people are buying online, but they're also buying more than ever before. are outside. – This is likely not the last.

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