🔹 Crisis Talks in Istanbul
At a pivotal meeting in Istanbul, Getir's top brass, including key investor Mubadala Capital, deliberated the company’s shrinking global footprint and faltering sales outside Turkey. With 96% of sales domestic, Getir might exit Germany, UK, the Netherlands, and the USA to focus on its profitable Turkish market. This strategic retreat reflects a dramatic shift from its peak $12B valuation.
🔹 The German Equation
Getir's presence in Germany has significantly receded from its bustling early days. The once vibrant Gorillas warehouse in Berlin's Neukölln now sees sparse activity, signaling declining operations. The potential withdrawal stems from failing to match the domestic success in international markets, despite aggressive expansion efforts. Local couriers and employees face uncertainty as restructuring decisions loom.
🔹 Financial Strains and Market Withdrawal
The financial pressure is palpable, with Getir reportedly burning through $50M monthly, compelling it to reconsider its position in non-performing markets. The discussion of a complete withdrawal by end of May 2024 underscores the severity of the situation. Meanwhile, legal proceedings in Berlin hint at pre-emptive downsizing, aligning with strategic contractions across Europe and America.
🔹 Future Outlook and Industry Impact
As Getir reevaluates its global strategy, the implications for the fast food delivery industry are profound. The potential dissolution of the Gorillas brand, if Getir exits Germany, would mark a significant reduction in competition. This retraction might allow other players like Picnic to fill the void, reshaping the market dynamics. Getir's upcoming decisions will be critical in determining its path and the landscape of international food delivery services.
Could Getir's market exit signal a broader industry retrenchment?
