The deal between quick commerce companies Getir and Gorillas has been finalised (after all). Istanbul-based Getir is buying its German sector rival, albeit a week later than expected and for half the price.
Flashed through reserves
After a lengthy process, Getir and Gorillas have agreed to join forces. The Germans had to accept an acquisition fee of 1.2 billion dollars (roughly the same amount in euros), which is less than half the value Gorillas had just a year ago. Not that Getir fares any differently: the Turkish company estimates the combined value of the newly merged company at ten billion dollars. That would mean that today the Turkish company itself is also worth a quarter less.
Now that the acquisition is complete, it turns out not only that Gorillas is heavily loss-making – the start-up had already admitted this – but that it is also burning through its reserves at a rapid pace. Since 2020, the Berlin-based grocery delivery company has raised as much as 1.3 billion dollars, but it is said to have already used it all up. For every euro the company brings in, it loses an average of one and a half euros, insiders reported to the Financial Times. Indeed, Gorillas had to apply for a bridge loan while Getir was doing its due diligence.
The high losses make casualties and consolidation in the fledgling flash delivery market inevitable. By merging, Getir can reduce its customer acquisition costs, while synergies in terms of dark stores and suppliers are also possible. Layoffs are also to be expected, as there is considerable over overlap between the two players in cities such as Amsterdam, Berlin, London and Paris. Perhaps dark stores will close and couriers will lose their jobs.