Getir Joins Ultrafast Grocers Taking a Hit Amid Economic Challenges

Even the largest ultrafast grocers are taking a hit as economic challenges rack the industry.

Now, even Turkey-based multibillion-dollar quick-commerce firm Getir, which seemed to have largely escaped the challenges that other players in the space have faced, has been dealt a major blow. On Wednesday (April 19), Insider reported that the ultrafast grocer’s latest fundraise, amounting to $500 million including $300 million from Mubadala Investment Company, has cut the company’s valuation nearly in half, from $12 billion last year down to $6.5 billion.

The news comes just days after the company touted its massive dark store network, the “biggest and most efficient store network for ultrafast grocery delivery” in Europe, per Getir Regional General Manager Turancan Salur.

Getir did not immediately respond to PYMNTS’ request for comment.

Around the world, ultrafast firms have been struggling in the face of inflation and other macroeconomic pressures. Earlier this month, it was reported that Sydney, Australia, 10-minute grocery delivery service MilkRun has shut down, unable to raise sufficient capital to keep the company going amid losses. Around the same time, DoorDash’s DashMart dark store rapid delivery arm shuttered in Australia about four months after its arrival in the country.

Plus, last month, in the U.S., it was reported that ultrafast grocery delivery firm Food Rocket, backed by convenience retail giant Couche-Tard, had shut down. Also last month, on-demand convenience retail delivery service Gopuff confirmed that it had cut around 2% of its workforce in an effort to improve performance, a move that affected more than 100 employees and marks the third round of major layoffs in the last year.

The news comes as consumers reconsider their spending, with many no longer willing to pay the premium for on-demand convenience. Research from the latest edition of PYMNTS’ Consumer Inflation Sentiment study, “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,” which draws from a survey of more than 2,100 U.S. consumers, finds that three-quarters have cut back on nonessential retail purchases. Moreover, 72% stated that prices and discounts influenced their decision of where to make their most recent retail purchase.

Even larger delivery companies such as major restaurant aggregators are facing new challenges in this economic climate. Multinational restaurant delivery aggregator Just Eat Takeaway.com saw orders fall by 14% year over year in the first quarter of 2023, from 263 million to 228 million, the company reported in a presentation shared with analysts Wednesday (April 19), and gross transaction value (GTV) fell 8%.

Meanwhile, United-Kingdom-based multinational aggregator Deliveroo reported last month that it is ahead of schedule on reaching profitability, but this was only possible after CEO Will Shu announced that the aggregator was laying off 9% of its global workforce due to economic challenges.

The aggregator is continuing with its ultrafast grocery efforts, in spite of noting other players’ challenges throughout the past year.

“During 2022, we saw the pressures in this industry. We saw a lot of the pure-play quick commerce guys have some difficulties as funding has dried up, we’ve seen players merging,” Shu noted. Yet, he added, “We have made really significant advancements in profitability of HOP. And we’re very confident of its role in our marketplace.”