Tuesday, August 22, 2023



Rapid delivery firm Getir to axe 2,500 jobs in cost-cutting drive

Henry Saker-Clark, PA Deputy Business Editor
Tue, 22 August 2023 


Rapid grocery delivery firm Getir is to cut about 2,500 jobs globally as part of a major restructuring.

The company will axe more than a tenth of its 23,000 workforce in a bid to “significantly increase operational efficiency”.

It is unclear how many jobs across its UK operation will be impacted by the cuts.

The group stressed it will continue to operate across Turkey, its home market, as well as the UK, Germany, the Netherlands and the US.

Getir had already exited markets in Italy, Spain, France and Portugal in recent months.

It comes after reports by Sky last month that the company was racing to secure further funding amid questions over the financial future of its UK business.

The company also launched an auction to sell a raft of its scooters, crash helmets and food delivery boxes in London last month due to the closure of a delivery hub.

The whole instant delivery platform sector has come under pressure after pandemic restrictions eased back and more shoppers returned to physical supermarkets.

A spokesman for the company said: “Regrettably, Getir intends to reduce its team and, with a heavy heart, part ways with approximately 2,500 talented employees across its markets.

“Decisions like these are never taken lightly.

“However, Getir is determined to do right by all employees affected by the process in line with its values and in full compliance with local laws.

“Getir is very grateful to all colleagues for their hard work, dedication and significant contributions to the business.”

Rapid grocer Getir to cut 2,500 jobs in five countries including UK

Sarah Butler
THE GUARDIAN
Tue, 22 August 2023

Photograph: Piroschka van de Wouw/Reuters

The fast-track grocery service Getir is to cut about 2,500 jobs across five countries including the UK in the latest sign of waning demand in the delivery market.

The company said the job cuts, which make up more than 10% of its 23,000-member workforce, would include couriers, pickers and office employees in the UK, US, Germany, the Netherlands and its home market, Turkey.

Getir has already exited Spain, Italy and Portugal as demand for rapid deliveries of groceries in less than 20 minutes has subsided amid the cost of living crisis while costs have rien.

Fast-track specialists including Getir and Gopuff are also coming under pressure from bigger rivals Deliveroo, Uber Eats and JustEat, which have expanded into grocery delivery alongside takeaways. In the UK, Tesco, Sainsbury’s and Ocado also operate their own rapid delivery services – Whoosh, Chop Chop and Zoom.

The market has rapidly contracted since the reopening of hospitality businesses, offices and high streets after the pandemic lockdowns, prompting consolidation among a plethora of private equity-fuelled operators that sprung up to take advantage of demand for home deliveries.

Investors poured more than $14bn (£10.5bn) into the market globally over 2020 and 2021, according to analysts at PitchBook, but interest has rapidly retreated.

Last year, the value of on-demand delivery investment globally by venture capital investors dived by more than 60% to £3.8bn according to PitchBook and is on track for another fall this year.

Getir, which was founded in Turkey in 2015, bought up rival Gorillas in a $1.2bn deal in December 2022 after snapping up the UK’s Weezy a year earlier. Smaller rival Jiffy ceased deliveries last year while the US operator Gopuff bought the UK’s Fancy and Dija in 2021.

Amid rapid cost cutting, the Zapp and Gopuff now work with Deliveroo in the UK for deliveries in some areas and Getir has teamed up with JustEat.

Navina Rajan, PitchBook’s senior European private capital analyst, said: “Over the last two years we’ve seen a notable shift in both funding and the structure of the on-demand delivery market.

“Tighter financing conditions and a move towards profitability from a growth-at-all-costs mindset have been the key drivers for consolidation in the space and pressure on companies to demonstrate a path to profitability.”

Getir is thought to be attempting to raise $500m in a funding round led by existing investor Mubadala, the Abu Dhabi sovereign wealth fund, in order to continue operating.

Getir said it was reducing the size of its team with “a heavy heart” to “increase operational efficiency”.

“Decisions like these are never taken lightly. However, Getir is determined to do right by all employees affected by the process in line with its values and in full compliance with local laws. Getir is very grateful to all colleagues for their hard work, dedication, and significant contributions to the business.”

The company said it “remains fully committed to the future of the industry it pioneered eight years ago and will continue to lead it in the future”.

No comments:

Post a Comment