Turkish grocery delivery company Getir pulls out of Europe, U.S
8:38 am Monday, April 29th, 2024
By Ebru Tuncay
ISTANBUL (Reuters) -Turkish delivery company Getir will withdraw from its remaining European and U.S. markets to focus on its main home market, it said on Monday, marking an abrupt turnaround after expansion and boom in recent years.
Getir grew rapidly during the COVID-19 pandemic, attracting high-profile investors and reaching a valuation of $12 billion two years ago as it established operations across Western Europe and in New York and Chicago.
But as the pandemic ended and people returned to physical shopping, high profit margins fell, making it difficult to meet costs arising from investments in these markets.
“Getir will focus on Turkey, its main market where it sees the greatest potential for long-term sustainable growth,” the Istanbul-based company said, adding it had decided to exit Britain, Germany, the Netherlands and the United States.
These markets accounted for some 7% of revenues, it said.
A source close to the company told Reuters that Getir is open to talks on what to do with its assets in the markets it is leaving.
Last week, Reuters reported the company was considering a new roadmap including possible asset sales.
Getir also said it had secured new financing from Mubadala and G Squared and would use it to increase competitiveness in Turkey.
It said that its U.S. subsidiary FreshDirect, which it bought late last year, would continue operations.
In 2022, Getir laid off 14% of its employees in Turkey due to inflation pressures. A year later, it announced its departure from the French, Italian, Spanish and Portuguese markets, limiting its activities to Turkey, Britain, Germany, the Netherlands and the United States.
Turkish businessman Nazim Salur founded Getir in 2015. Its investors included Mubadala Investment Company, Abu Dhabi Growth Fund (ADG), Alpha Wave Global, Sequoia Capital and Tiger Global.
(Writing by Ece Toksabay and Daren Butler;Editing by Louise Heavens and Jonathan Spicer)
