Getir pulls out of the US but says FreshDirect will keep operating

By: Trademagazin editor Date: 2024. 05. 02. 09:11

The quick-delivery company said it is redirecting its capital to its home market of Turkey, where it generates more than 90% of its revenue and sees the most potential for growth.

Rapid delivery company Getir is winding down its operations in the United States as part of a broader plan to concentrate its resources on its home market of Turkey, “where it sees the biggest potential for long-term sustainable growth,” the firm said in a statement Monday.

But Getir said FreshDirect, the New York-area e-grocer it bought at the end of last year from Ahold Delhaize, “will continue its operations.” Getir did not provide further details about FreshDirect’s future, and a spokesperson declined to comment on whether the company intends to retain ownership of the online grocery company or put it up for sale.

“FreshDirect is committed to guaranteeing a seamless and uninterrupted process, maintaining the exceptional service its customers have grown accustomed to,” a FreshDirect spokesperson said in an email.

Getir said in the statement that it decided to leave the U.S., along with the U.K., Germany and the Netherlands, because those markets combined account for only 7% of its revenue.

Getir added that it has raised new capital from Mubadala and G Squared and plans to “utilize these funds to bolster its competitive position in its core food and grocery delivery businesses in Turkey.”

Getir’s decision to retrench will result in the elimination of around 6,000 positions across the markets it is leaving, according to a report by TechCrunch.

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