Getir to Exit German Market and Other European Countries by Mid-May

Getir, the Turkish food delivery service, plans to withdraw from Germany and other European markets by mid-May 2023, citing financial challenges and inability to merge Getir and Gorillas into a single brand.

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Trim Correspondents
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Getir to Exit German Market and Other European Countries by Mid-May

Getir to Exit German Market and Other European Countries by Mid-May

Getir, the Turkish food delivery service that owns Gorillas, reportedly plans to withdraw from the German market and other European countries by mid-May 2023. The company, which acquired rival Gorillas in a $1.2 billion deal in December 2022, is said to be focusing on its domestic Turkish market after failing to establish a viable business model and merge Getir and Gorillas in Germany into a single brand to cut costs.

According to reports, Getir's major shareholder Mubadala has lost patience with the company's management and their inability to turn Getir and Gorillas into a single brand following the acquisition, leading to higher operational costs. As a result, Getir is set to announce a complete withdrawal from all markets except Turkey, impacting approximately 1,400 employees in Germany alone.

The food delivery industry has faced increasing competition and pressure to become profitable in recent years. The coronavirus pandemic initially boosted demand for fast delivery services like Getir and Gorillas, but the business has since performed poorly. Getir had even reportedly attempted to acquire another delivery service, Flink, as a last-ditch effort to remain competitive, but that attempt also failed.

Why this matters: Getir's decision to exit the German market and other European countries highlights the challenges faced by food delivery companies in an increasingly competitive and financially demanding industry. The withdrawal will not only impact Getir's operations but also result in significant job losses across its European markets.

Mubadala, which is also invested in Flink, is now looking to consolidate its delivery service investments. While a merger between Getir and Flink has been considered, it has not materialized so far. Getir's potential withdrawal from the German market would leave only one major player remaining in the country, which is not considered a winner in the highly competitive food delivery sector.

Getir has declined to comment on the reported plans to withdraw from Germany and other European markets. The company's aggressive discounts and promotions are seen as a sign of the desperate situation facing the business model of delivering groceries to customers' doors within minutes of ordering. Getir's exit from Germany marks a significant setback for its European expansion plans and will result in job losses for nearly 1,800 employees in the country.

Key Takeaways

  • Getir plans to withdraw from Germany and other European markets by mid-May 2023.
  • Getir's major shareholder Mubadala has lost patience with the company's inability to merge Getir and Gorillas.
  • The food delivery industry faces increasing competition and pressure to become profitable.
  • Getir's withdrawal will result in significant job losses across its European markets.
  • Getir's aggressive discounts and promotions indicate the challenges facing its business model.