Getir, a $12 billion instant delivery startup, plans to cut 14% of its workforce globally and scale back aggressive expansion plans.

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This is still a very busy week for e-commerce companies in Europe. In the latest development, TechCrunch learned and confirmed that Getir a $12 billion fast-commerce startup that essentials and small items and promises to deliver them in minutes – cuts 14% of its staff worldwide. It was rated that the Turkish company employs about 32,000 people in the nine markets where it operates, which would result in a reduction of 4,480 people.

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In addition to headcount, the company plans to cut much of its capital-intensive expansion, which will include hiring, investment in marketing and promotions. (Promotions in this context are not HR promotions, but a lot of discounts and free vouchers that fast commerce startups use to drive users to their platforms in huge costs for startups themselves.)

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According to the memorandum we saw and which we publish below, the cuts will vary by country. (One source in Berlin estimated that the cut in that city alone would be around 400, though Getir would not confirm that number.) The company has confirmed it will not be pulling out of any specific country as part of this. Getir currently operates in the Turkish domestic market as well as in the UK, Germany, France, Italy, Spain, the Netherlands, Portugal and the USA.

This is a sharp swing of the pendulum for a company that raised $768 million at a $11.8 billion valuation. just two months ago.

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But that’s not surprising in the broader market context we’re in right now, with tech companies big and small seeing a downturn in their finances and valuations in the face of a broader market cooldown.

Just yesterday, one of Getir’s main competitors in Europe, Gorillas, announced lays off 300 people and plans to explore strategic options, including selling or leaving, in several European markets. Earlier this week, Klarna — a Swedish company called Buy Now, Pay Later — confirmed it will cut 10% of its workforce amid reports that it is trying to raise money at a low estimate.

Many believe that the world of instant grocery delivery is long overdue for the right size. Getir, founded seven years ago, was a pioneer in the fast food market, but the category has exploded in the last couple of years.

Covid-19 has led to a change in consumer habits: in many cases, stores were closed for a while and people were less likely to shop in person when they were open, leading to a surge in people wanting to try shopping. for products online for the first time. Many companies, backed by huge venture capital investments, have sprung up to serve these consumers, and a significant portion of these startups have been based on the premise of “instant” delivery, where goods are delivered to your door within minutes of ordering, simulating (or even reducing) the time that required to quickly get to a physical store.

Even before the capital markets crashed earlier this year, several small startups either closed or were acquired. one of the combiners, along with other big players such as Gopuff, Flink and Gorillas. This is a trend that continuation in 2022and there will probably be more.

Companies like Klarna and Getir may be from different parts of the commerce world, but they have one thing in common: they are both backed by Sequoia. The legendary VC (which led Getir Series C in 2021) delivered a disturbing presentation to portfolio companies just this week, outlining the state of the market today and some advice on how to help weather the storm. The 50-slide presentation the source shared with us covered topics such as runway expansion, fundraising in challenging markets, leadership in challenging times, and forecasting.

Emphasized for a company like Getir, which, like its competitors, has been raising hundreds of millions of dollars to invest in aggressive expansion strategies that include flashy advertising campaigns, vast operating infrastructure in urban areas, and multiple promotions to attract more consumers. one slide was titled “Growth at any cost is no longer rewarded.”

The presentation message seems to have definitely hit the target for Getir.

The note follows below. We will update this post as we learn more and send our best wishes to those affected by this news.

Today is one of the most difficult days since we founded Getir because we have to make difficult decisions regarding our HR organization that will adversely affect some of our team members.

Rising inflation and a deteriorating macroeconomic outlook around the world are pushing all companies, especially those in the technology industry, including Getir, to adjust to new conditions.

It is with a heavy heart that we today shared with our team the sad and difficult decision to downsize our global organization. At global headquarters, our reduction will be around 14%. The numbers will vary by country.

We do not take these decisions lightly. We will do right by each person throughout this process in accordance with Getir’s values ​​of being a good and honest company. We will also reduce the cost of marketing investments, promotions and expansion.

Getir’s plans to operate in nine countries have not changed. In these challenging times, we are committed to leading the ultra-fast food delivery industry that we launched seven years ago.


Credit: techcrunch.com /

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