The gig economy is taking a turn for the worse in Germany, with Turkish fast grocery delivery service Getir preparing to exit the country on May 15. The company also plans to withdraw from the UK and the Netherlands.
The exit will also result in the closure of Berlin grocery delivery service Gorillas, which was acquired by Getir for €1.1B in December 2022. Getir pulled out of its other European markets, France, Italy, Spain, and Portugal, in 2023. Turkey, the Istanbul company's home market, will now be its only market.
In May 2023, there were reports that the company was considering acquiring its Berlin competitor, Flink. However, the acquisition never materialised.
Founded in 2015, the company has raised $1.8B, raising a $768 million Series E funding round in 2022, providing a valuation of $11.8 billion.
A blow for German gig economy employees
The news of the exit has profoundly impacted German employees, with 1800 warehouse workers being laid off.
Rising food prices have hard hit the last-mile food delivery sector, and the consequences of rapid expansion, neighbourhood warehouse closures, and challenges to labour breaches.
This affects the already narrow profit margins. In addition, many consumers report that rapid delivery has become half-hour delivery across the sector—a levelling out of expectation vs. reality.
According to information from UK media Sky, Getir has received new financing in the double-digit million range from its existing investors. However, the funds must be used to withdraw and settle the three markets and for further business expansion in Turkey.
Lead image: Getir. Photo: uncredited.
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