UAE’s Mubadala to take full control of Turkish grocery delivery app Getir

Abu Dhabi’s Mubadala Investment is poised to assume full control of Turkish grocery delivery startup Getir, following a power struggle that emerged after the company’s decline following coronavirus lockdowns.

The Abu Dhabi wealth fund formally applied for full control this week, according to a statement released by Turkish antitrust regulators on Friday. Neither Mubadala nor Getir representatives have commented on the development.

Mubadala’s Getir investment

Mubadala took a controlling stake in Getir earlier this year during a fundraising round in June, which saw Getir founder Nazim Salur step down as CEO. Under the agreement, Salur and his co-founders retained minority stakes and board seats, despite disagreements with investors over the company’s strategy and costs.

Founded in 2015, Getir became a pandemic success story, offering ultra-fast grocery deliveries, often within 10 minutes. At its peak in 2022, Getir was valued at $11.8 billion after a funding round led by Mubadala. However, by the end of 2022, its valuation had plummeted to $2.5 billion, according to The Financial Times.

‘Without Mubadala’s partnership, Getir would not exist today’

“We have been the only investor to consistently support Getir over the last three rounds, providing over 80% of the capital that has gone into the company since 2021,” the Mubadala spokesperson said to Bloombergs last month, acknowledging earlier “disagreements” with Getir’s founders. “Without Mubadala’s partnership and support, Getir would not exist today.” 

In 2022, Mubadala led a round of financing into Turkish grocery delivery startup Getir that valued it at $11.8 billion – a stand-out figure even in the peak of the pandemic delivery bubble.  

But Getir’s expensive expansion and its acquisitions of rivals such as Germany’s Gorillas never translated to international profitability. By 2023, it was burning about $50 million a month.

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 U.K., 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.

Obstacles faced by delivery app Getir after global expansion

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

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 U.K., 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.

Getir’s strategic shift to focus on 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.