Getir’s rise and retreat explained: Turkish startup shook global markets
Getir's rapid expansion took its services to doorsteps across major cities globally. (Adobe Stock Photo)
In 2015, a Turkish entrepreneur had an idea that would revolutionize the way people shop for groceries. That idea became Getir, a Turkish startup that promised to deliver groceries in just minutes, a concept that caught on like wildfire not only in Türkiye but across Europe and the United States.
The Turkish company Getir grew from a small startup into a multi-billion-dollar business in just a few years. However, despite its meteoric rise, Getir has recently made the surprising decision to withdraw from most of its international markets. So, what led to this sudden change?
Getir founders’ innovative approach to grocery delivery
Getir was founded in 2015 by Nazim Salur, a seasoned entrepreneur known for his earlier success with the ride-hailing app BiTaksi, alongside Serkan Borancili, the co-founder of GittiGidiyor (which was later sold to eBay), and Tuncay Tutek, a former executive at multinational companies.
Salur’s idea was simple yet revolutionary: to deliver everyday essentials like groceries to customers in under 10 minutes. This was made possible by a network of “dark stores,” small warehouses strategically located in urban areas that stocked the most commonly needed items.
The founders’ extensive experience in tech and logistics allowed them to design a highly efficient system. By combining technology, logistics, and an understanding of consumer behavior, Getir quickly became a hit in Türkiye. The company’s ability to deliver items within minutes appealed to busy urban dwellers, particularly during the COVID-19 pandemic when demand for home delivery services surged.
How Getir quickly gained popularity
Getir’s success in Türkiye laid the foundation for its rapid international expansion. The company’s model, built around the concept of ultra-fast grocery delivery, tapped into a growing market of consumers who valued convenience and speed.
By 2021, the Turkish startup had evolved into a company that expanded its operations to eight countries, including the UK, Germany, the Netherlands, and the U.S. The company’s valuation soared to $11.8 billion, making it one of the few Turkish “decacorns.”
Getir’s approach was not only innovative but also perfectly timed. The onset of the COVID-19 pandemic accelerated the demand for rapid home deliveries, particularly for groceries and everyday essentials.
With its efficient delivery model, Getir quickly captured significant market share in Türkiye and began replicating its success in major cities across Europe and the United States.
Major obstacles Turkish company Getir faced after expanding to several countries
Despite its rapid rise, Getir encountered significant challenges with its business model. The first signs of trouble emerged after the pandemic when demand for ultra-fast delivery started to decline.
The high operational costs of maintaining a fleet of couriers and multiple dark stores in expensive urban locations began to erode the company’s profit margins. Additionally, competition intensified as both local startups and established players like Deliveroo, Uber Eats, and major supermarket chains entered the market.
In 2022, the Turkish company Getir made a significant move by acquiring its German competitor, Gorillas, for $1.2 billion. Although this acquisition temporarily strengthened its market position, it also added to the company’s financial burdens.
Why Getir chose to exit key markets like the UK, US and factors behind the decision
In 2023, Getir began scaling back its operations in Europe, starting with exits from France, Spain, Italy, and Portugal. The Turkish company Getir’s retreat continued into 2024 when it announced its withdrawal from the UK, Germany, the Netherlands, and the U.S.
This decision stemmed from the need to focus on its core market in Türkiye, where the company sees the greatest potential for sustainable growth. Rising operational costs, increased competition, and the shift in investor expectations from growth to profitability also played a crucial role in this decision.
Nazim Salur, one of Getir’s founders acknowledged the difficulties in a public statement, expressing regret over the need to exit these markets but emphasized the importance of focusing on long-term sustainability.
Turkish startup Getir’s strategic shift to focus on core business in Türkiye
To stabilize its operations, Getir embarked on a significant restructuring effort. The company split into two distinct entities: one focusing on Türkiye’s online grocery and food delivery markets, and the other managing its international e-commerce and financial services, including FreshDirect. Mubadala, one of Getir’s largest investors, took a majority stake in the Turkish operations and provided $250 million in new funding.
This restructuring allows Getir to better allocate resources and streamline its operations. The company’s leadership believes that by focusing on its core competencies in Türkiye, Getir can maintain its market leadership and eventually return to profitability.
Getir’s plans to strengthen position in Turkish market after global setbacks
Despite its setbacks, Getir remains a dominant force in Türkiye, where it continues to lead the online grocery delivery market. The company’s recent restructuring and renewed focus on its home market suggest a more cautious and sustainable approach going forward.
For those in the countries from which Getir has withdrawn, the company’s swift rise and sudden exit serve as a clear example of the challenges that come with global expansion in a volatile market. However, in Türkiye, Getir is regrouping, ready to leverage its home-field advantage to sustain and grow its business.
