Getir to Withdraw from UK Market

Getir, a Turkish rapid grocery delivery firm, plans to withdraw from the UK, Germany, and the Netherlands, putting thousands of jobs at risk, as it faces financial troubles and seeks to reduce losses amid shifting consumer behavior post-pandemic.

author-image
Safak Costu
Updated On
New Update
Getir to Withdraw from UK, Germany, and Netherlands Markets

Getir to Withdraw from UK, Germany, and Netherlands Markets

Getir, a Turkish rapid grocery delivery company, plans to announce its withdrawal from the UK, market next week. The move is expected to put thousands of jobs at risk, including around 1,500 in the UK alone.

The company, once valued at nearly $12 billion, has been facing financial troubles and is looking to sell assets and exit non-core markets as it seeks to reduce losses. Getir has already pulled out of several other countries like Italy and Spain in an attempt to cut costs.

Getir's business skyrocketed during the COVID-19 pandemic, but demand for its services has since subsided as the world emerged from lockdowns. The company has been burning through as much as $50 million a month, and its investors, including Mubadala Investment Co, Tiger Global, and Sequoia Capital, are now seeking a major restructuring.

The details of the exit process remain unclear, but reports suggest it could involve a sale of assets or an insolvency procedure, although no final decisions have been made. Getir has drafted in restructuring advisers and is being advised by Mubadala, one of its biggest shareholders.

Why this matters: Getir's withdrawal from the UK highlights the slumping valuations of technology companies that were once hailed as the new titans of major economies. The rapid grocery delivery sector has faced challenges as consumer behavior shifts post-pandemic and established supermarket chains launch their own competing services.

If Getir leaves these European markets, it will be left with operations only in the US and Turkey, where the company was founded. "Getir's retreat highlights the slumping valuations of technology companies that were once seen as the new titans of major economies," said an industry analyst. The company had previously denied any form of insolvency, but its valuation has plummeted since raising over $750 million in funding in 2022, leading to the planned withdrawal and thousands of potential job losses across Europe.

Key Takeaways

  • Getir to withdraw from UK, putting 1,500 jobs at risk
  • Getir faces financial troubles, plans to sell assets and exit non-core markets
  • Getir's valuation plunged from $12B to exit Europe, focus on US and Turkey
  • Rapid grocery delivery sector faces challenges as consumer behavior shifts post-pandemic
  • Getir's retreat highlights slumping valuations of tech companies once seen as titans