Home » Investor pulls plug: Getir delivery service will be leaving Germany from mid-May

Investor pulls plug: Getir delivery service will be leaving Germany from mid-May

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Investor pulls plug: Getir delivery service will be leaving Germany from mid-May

picture alliance/dpa | Wolfram Steinberg

According to research by Business Insider, the Getir delivery service may be on the verge of closure as early as mid-May. Then the company apparently wants to announce a complete withdrawal from all markets with the exception of Turkey.

Reason: The most important investor, the Mubadala fund from Abu Dhabi, no longer wants to invest in parallel in the delivery service Getir and Flink, but apparently wants to better integrate the brands with each other.

1,400 employees at Getir are affected by the move. What will become of them remains unclear for the time being.

Delivery service Getir was worth $7.5 billion just two years ago the most valuable startup in Türkiye. Within just a few years, the company, founded in 2015, had grown in an unprecedented manner and, from 2021, conquered the markets in Great Britain, Germany and other European countries. At the end of 2022, Getir finally swallowed the German delivery service Gorillas. It seemed like Getir was headed for a bright future as the new delivery giant in Europe.

But the first setback came in mid-2023: Getir cut 2,500 jobs internationally and withdrew from 17 cities in Germany. Apparently to consolidate the business. In addition to Germany, Getir is currently active in the USA, France and the Netherlands. In fact, Getir is more of a pseudo-giant, kept alive by constant new money. According to media reports, the delivery service is said to have burned between 50 and 100 million euros every month.

Mubadala apparently wants merger

Now, however, it is apparently over: According to information from Business Insider, Getir’s central investor, the sovereign wealth fund Mubadala from Abu Dhabi, is pulling the plug on Getir. According to investor circles, the company is to be wound up. It is said that a complete withdrawal from all markets except Turkey – including Germany – will be announced as early as mid-May. 1,400 employees in this country are threatened with extinction.

Reason for the tough step: Mubadala is said to be highly dissatisfied with the Turkish management, which holds the reins at Getir throughout Europe, it is said. Getir is said to have received around $800 million so far, but a sustainable business model has not been developed. For example, after the takeover of Gorillas in Germany, the Turkish management failed to turn the former two brands into one. Higher purchasing prices, double structures and logistics costs were the expensive consequences.

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The fact that Mubadala is now pulling the plug on Getir is reportedly also based on a strategic consideration: the fund is also involved in Getir’s competitor Flink and has invested three-digit million sums here. Given the difficult market for delivery services, investing millions in two large delivery services is not worth it. There had been speculation for a long time as to whether Flink and Getir would merge.

According to “Wirtschaftswoche”, the Getir board last spoke to Mubadala representatives at the beginning of April about the future of the delivery service. The fund is said to have made it clear there that they consider a merger to make sense.

But so far that has failed because of Flink. But fresh money is now needed there again. Investor circles say: Mubadala could have made appropriate financial commitments if Flink was sold to Getir. But then why settle Getir?

No bankruptcy for Getir – but why not?

Perhaps the idea: Getir takes care of the Turkish market, where well over 90 percent of sales are generated anyway. And Flink takes care of the markets outside of Turkey. If that is the goal, it could also explain why Getir is not being sent into bankruptcy. Because Getir could not take over Flink in the event of bankruptcy. But another explanation is also circulating: bankruptcy would reveal how much money was actually burned in the end. And this could potentially lead to unpleasant questions for the Turkish Getir bosses around founder Nazım Salur, which they want to avoid.

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