The Rapid Rise of Getir

Getir is a Turkish-based delivery app founded in 2015. Recently it has grown rapidly, with the firm’s workforce now consisting of over 30,000 employees worldwide. The service has already launched within the U.S.A. in Boston, Chicago and New York as well as throughout Europe in the U.K., Germany, Italy, France, Spain, Portugal, and the Netherlands. Getir is currently aiming to raise capital at a valuation of around 12 billion USD through an ongoing funding round. Previously they raised 550 million USD in a funding round in June 2021 which valued the firm at 7.7 billion USD, 300 million USD at a valuation of $2.6 billion USD in March and 128 million USD at a valuation of 850 million USD in January. If Getir reaches their desired valuation of 12 billion USD in this funding round, they will have become the most valuable company based in Turkey – a country with an economy that has had a tumultuous past couple of years. Firms that have invested so far include Sequoia Capital, Silver Lake and Tiger Global.

The firm chose to have funding rounds in such quick succession to raise the capital necessary to fuel their rapidly growing operations, and to enter markets before competitors or new start-ups do, with Getir’s CEO stating that, “If we don’t take care of business, others will”. Within just the last two years, over 10 similar start-ups have launched throughout Europe including Gorillas, valued at 3.1 billion USD and Flink, valued at 2.85 billion USD, highlighting that this market is becoming quite crowded, with growth fuelled largely by the shift to online shopping seen during the pandemic, as well as the convenience that this service provides for customers, with delivery by third-party apps rising by over 300% throughout 2020.

Getir is targeting the rapid side of the delivery industry, with its aim of under-10-minute drop-offs of groceries, essentials, and food from restaurant partners. They have pioneered this concept in Turkey where they operate in 30 cities and are currently fulfilling over 5 million orders a month through their network of drivers. Now, more established retailers and delivery services are entering this area. For example, the French firm Carrefour, which generated over 80 billion EUR of revenue in 2019 and operates within Belgium, France, Italy, and Spain, as well as the British retailer Sainsbury’s, both partnered with Deliveroo to roll out a 10 to 20 minutes delivery service, with the former also having partnered with Uber Eats throughout France. The e-grocery market is predicted to reach over 650 billion USD globally by 2024, with growth rates of around 25% each year.

It is thought that the purpose of the latest funding round is to finance further expansion within the United States and compete with the more established brands. This includes the Amazon-backed DoorDash as well as the Softbank-backed start-up GoPuff, which began its expansion into Europe last May through the acquisition of the small British firm, Fancy, followed by Dija in August. GoPuff is currently valued at around 15 billion USD and is said to be Getir’s main rival as they expand throughout the U.S.A., a region where GoPuff has focussed its operations and acquisitions. However, Mert Salur, a co-founder of Getir stated that “the competition there [in the U.S.A.] is not going to bother us,” and that the firm is “much more experienced” than these already present companies, so they are not seen as immediate competitors.

However, despite the promising growth and profitability of these firms, it is partially fuelled by the low wages offered to drivers. This allows for lower overheads, something that may be hindered if new regulations are introduced. This possibility impacted the IPO of Deliveroo in December of 2020, which saw its stock price fall 26% on the opening day of trading. This followed fears that there may be regulatory change made by U.K. regulators, which would have likely benefitted drivers and reduced profitability within the industry. If new regulations were introduced they would impact the operations of Getir in the U.K., as well as throughout the E.U., which is also considering the implementation of new regulations to benefit workers within the gig economy, e.g., delivery drivers. Therefore, despite recent growth, new regulations would massively impact the business model of Getir, unless they are able to rapidly grow throughout the very profitable U.S.A., where workers rights in the gig economy are more relaxed.

By Kristian Eklund

Sector Head: Gregor MacDonald

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