Move is the most recent indicator of decreasing demand in the delivery business due to the expense cost of living crisis and the end of lockdowns.
As the latest indication of a decrease in demand in the delivery business, the fast-track grocery company Getir will eliminate around 2,500 positions across five nations, including the UK.
The firm announced that the job cuts, which account for over ten percent of its 23,000 employees, will affect office workers, pickers, and couriers in the US, the UK, Germany, the Netherlands, and Turkey, where it is headquartered.
Getir has already left Spain, Italy, and Portugal since demand for quick grocery deliveries in under 20 minutes has decreased despite rising prices due to the rising cost of living issue.
Greater competitors Deliveroo, Uber Eats, as well as JustEat, which are branching out into delivery of groceries along with takeaways, are putting pressure on fast-track specialists Getir and Gopuff. Whoosh, Chop Chop, and Zoom are the names of Tesco, Sainsbury’s, and Ocado’s respective speedy delivery services in the UK.
After the reopening of hotels, offices, and high streets following the pandemic lockdowns, the market has shrunk quickly, which has prompted consolidation among a slew of private equity-fueled operators that sprang up to meet the requirement for home deliveries.
According to researchers at PitchBook, financiers invested more than $14 billion (£10.5 billion) into the stock market globally between 2020 and 2021, although interest has since sharply declined.
According to PitchBook, the value of venture capital investors’ global on-demand delivery investments fell by more than 60% to £3.8 billion last year and is on pace to do so again this year.
Getir, a Turkish company created in 2015, acquired competitor Gorillas, also in a $1.2 billion agreement in the month of December 2022 after acquiring Weezy in the UK a year earlier. Jiffy, a smaller rival, stopped shipping last year, and in 2021, the US company Gopuff acquired Fancy & Dija in the UK.
Startup Zapp and Gopuff also work together with Deliveroo in the U.K. for delivery in some locations, and Getir has partnered with JustEat amid quick cost-cutting efforts.
Getir is rumored to be looking to raise $500 million in a fundraising round led by current investor and sovereign wealth fund of Abu Dhabi Mubadala.
Getir stated that it was doing so to “increase operational efficiency” with “a heavy heart” and that this decision had been made.
“Decisions of this nature are never made casually. Getir, however, is committed to treating all affected employees fairly, in accordance with its core principles, and in strict accordance with local regulations. Getir is incredibly appreciative of all of his coworkers’ efforts, commitment, and valuable contributions to the company.
The business declared that it “remains completely dedicated to the growth of the sector that it established more than eight years ago and will keep leading it in the future”.