- Getir’s withdrawal could endanger over a thousand UK jobs
- Plans to exit UK, Germany, and Netherlands markets disclosed
- Decline in value prompts asset sales and restructuring actions
Getir, whose commercial agreement with Spurs is worth millions of pounds, will threaten over a thousand jobs with its withdrawal from the United Kingdom.
Previously valued at nearly $12 billion (£9.7 billion), the grocery delivery app Getir is on the verge of ceasing operations in the United Kingdom, a decision that would threaten more than a thousand jobs.
Getir is reportedly preparing to declare its withdrawal from the three European markets in which it continues to operate—the United Kingdom, Germany, and the Netherlands—next week.
Thousands of employment will be threatened in total, with the United Kingdom losing approximately 1,500, according to sources with knowledge of the situation.
On Friday, it remained uncertain how Getir, which has a commercial partnership worth millions of pounds with Tottenham Hotspur of the Premier League, would withdraw from the United Kingdom.
According to sources with knowledge of the situation, it may entail an insolvency proceeding or the disposal of assets; however, no decisions have been made at this time.
Getir has previously refuted any notion that the group or its subsidiaries were approaching insolvency.
In recent days, the company is believed to have engaged the services of restructuring consultants, whereas Mubadala, one of its largest shareholders and an Abu Dhabi fund, is receiving advice from AlixPartners.
Plans to abandon the United Kingdom and other markets will leave Getir with operations limited to the United States and Turkey.
Its ultimate objective is presumably to conduct business exclusively in Turkey, its country of origin.
Getir, which translates to “to bring” in Turkish, grew exponentially to become one of the most valuable fast-delivery platforms in the world.
The company was contemplating a series of asset sales, including FreshDirect, an online grocer based in the United States that it only acquired late last year.
Just two years ago, Getir was valued at approximately $12 billion (£9.7 billion). Since then, it has attempted to acquire several financially troubled competitors.
To reduce losses, the corporation has already withdrawn from several countries, including Italy and Spain.
The decline in its value underscores the declining assessments of technology firms that were previously esteemed as the emerging powerhouses of major economies.
Getir, like Mubadala, is supported by notable technology investors such as Tiger Global and Sequoia Capital.
During the pandemic, when financiers raced to invest billions of dollars in companies they believed would benefit from structural shifts in the economy, the company was among the most active startups.
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Its valuation has declined since a funding round in early 2022, during which it raised over $750 million.
Getir also announced a significant workforce reduction in September of last year, eliminating approximately 2,500 positions, or 10% of its global workforce.
Established in 2015, Getir was among a group of businesses that offered expedited delivery of foodstuffs and other vital goods to urban consumers.
Sales in the industry experienced a significant surge during the COVID-19 pandemic, aided by emergent trends like remote work, which instilled investor confidence in the industry’s long-term viability.
A considerable number of its competitors have ceased operations, whereas others have been acquired in a hasty wave of consolidation.
Gorillas was acquired by Getir for $1.2 billion in stock after business in December 2022.
“Getir does not comment on rumours in general,” a spokesperson stated on Friday.
