14 C
Monday, May 20, 2024

Grocery delivery firm Getir buys German rival Gorillas

Dec. 9 (UPI) — Grocery delivery service Getir agreed to buy German competitor Gorillas, as the latter continues to struggle amid a post-pandemic economy.

Getir, which is based in Turkey, did not disclose Friday financial terms of the deal to buy Gorillas, which was founded in Berlin in 2020 and promises grocery delivery in 10 minutes.


“Markets go up and down, but consumers love our service and convenience is here to stay,” Getir founder Nazim Salur said in a statement to the Financial Times.

“The super-fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created seven years ago.”

The Financial Times pegged the value of the reported cash-and-stock deal for Gorillas and its 10,000 employees at $1.2 billion, down from an estimated value of $3 billion a year ago, as grocery delivery companies battle rising food prices and high inflation.

The same report valued Getir, which was founded in 2015, at $10 billion. Getir operates across multiple countries.

In addition to Germany, Gorillas also operates in the Netherlands, Britain, France, Denmark and the United States. San Francisco-based meal delivery service DoorDash reportedly made a $400 million investment in Gorillas in 2021, which would have given the company a $2.1 billion value at the time.


At the time, DoorDash wanted the German company to slow its U.S. expansion plans and focus on reducing losses in European markets.

In May, Gorillas announced hundreds of layoffs as it struggled to reduce red ink. Steep discounts given to attract new customers were being unsustainably financed by venture capital at the time.

Getir is backed by financial heavyweights Sequoia Capital and Tiger Global, and is reportedly hoping to raise more funding early next year.


Latest news
Related news


Please enter your comment!
Please enter your name here