Rapid growth comes with a hefty price tag for Getir: the Turkish quick commerce player that recently acquired its rival Gorillas posted a loss of more than 500 million euros last year, meaning losses were bigger than the entire annual sales of not even 440 million.
Observers have long questioned the sustainability of the business model of flash delivery services, and Getir’s first published figures seem to confirm the scepticism. The company posted a turnover of 438 million euros and a loss of 553 million, according to Dutch business newspaper FD. The figures relate to operations in nine countries.
Despite this gaping financial hole, Getir is not really in trouble (yet): at the end of last year, the delivery company still had more than 500 million euros of cash on its balance sheet, and in March the scale-up raised more than 700 million euros of venture capital. Still, the company is cutting costs: in May, one in seven employees was laid off and the company put its expansion plans on hold.
Quick delivery companies are struggling as consumers return to shopping more often themselves after the pandemic. Inflation is making people pay closer attention to their budgets. Moreover, many cities are introducing stricter rules for the establishment of ‘dark stores’, which are no longer welcome in residential areas where their customers are. The crisis and rising interest rates are also making investors more cautious.
As a result, consolidation is the order of the day in the sector. Recently, Getir announced a close partnership with Just Eat Takeaway: the Turkish delivery service will deliver orders for the meal platform. And earlier this month, the company acquired its competitor Gorillas, which turns out to be heavily loss-making as well: for every euro the company brings in, it loses an average of one and a half euros. Getir therefore paid for the takeover only half of what Gorillas was still worth a year ago.