The franchise brand Getir might not yet be a household name here across the whole of the UK, but it's likely to become one very soon if the ultra-fast delivery grocery service's expansion plans continue at the lightning pace witnessed over the last twelve months.
Getir was founded in 2015 by Nazim Salur, the Turkish entrepreneur who had previously found success with Bitaksi, a leading taxi hailing app in Turkey. He launched the ultra-fast home delivery grocery business in 2015 and quickly moved to franchise the brand in 2016. Growth of the franchise network was exponential, and by 2021 Getir already had more than 600 franchisees in its native Turkey. The figures have been equally as impressive, with Salur announcing in March 2022 that the company has closed a new $768 million Series E funding round, reaching a reported valuation of $11.8 billion and achieving decacorn status.
Technology and speed are the key to Getir's business model, to its success to date and to its rapid pattern of growth. Customer orders are placed via an app, which uses algorithms to offer customers their perfect product selection and personalised recommendations based on previous orders. Once an order is placed, the goods and groceries are picked by a team at "dark store" premises before being delivered by courier on e-bike or e-scooter to the customer's door within minutes. The inventory of products is real-time, meaning that there are no substitutions or out-of-stock items, a common bugbear with traditional at-home grocery ordering services. During the pandemic Getir, together with other app-based fast delivery services operating in the same sphere, enjoyed whirlwind success on the back of the struggle that many traditional grocery stores were facing to meet the demand for delivery slots.
Setting his sights firmly on the UK market, Salur initially launched Getir in a number of major UK cities with company-owned units and staff employed directly by the business. The first opened in London in January 2021. This meant that when the brand then made the move to launch a UK franchise model at the British Franchise Exhibition in Birmingham in September 2021, there were already around 90 established stores ready for new franchisees to take over and run with. This strategic approach undoubtedly enabled the Getir UK franchise model to expand as speedily as it delivers household essentials (and a few luxuries) to its customer base.
There are hurdles in the path of the delivery start-up however which are threatening tp put the brakes on the speed of Getir’s seismic growth. Despite the demand for super fast at home delivery services having skyrocketed during the pandemic, the threat of an impending recession and changes in consumer spending patterns means that the brand has been forced to take cost-cutting measures, like so many others. In May 2022, along with grocery delivery app rivals Gorillas and Zapp, Getir told staff that it planned to reduce its global headcount by 14 percent saying that it would also " decrease spending on marketing investments, promotions, and expansion" in order to safeguard the business.
And so what next for the fast-grocery franchise brand? Whilst some may consider that the long term future of instant grocery delivery services is uncertain as post-pandemic life without restrictions resumes and prices soar with the cost of living crisis,this week reports suggest that Getir is now in talks to buy Berlin-based rival Gorillas, having already bought out Weezy in November 2021.This follows the trend of consolidation of brands within the crowded quick-delivery marketplace as high costs and low margins makes it difficult for firms to raise funds to scale.
Its journey to date has definitely been a super-fast one, with the speed of growth rivalling the delivery promise to get that forgotten pint of milk to a customers door in record time. It now remains to be seen if Getir can maintain the pace of its success in the face of undoubtedly challenging times ahead.
Rapid UK Expansion For Fast-Delivery Grocery Franchise Getir - Forbes
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