Grocery supply app Getir is leaving Spain after saying goodbye to France

After the upcoming exit from France, the quick commerce startup Getir loses another European market: Spain.

According to the Spanish trade union CCOO, Getir failed to raise sufficient capital in a recent round of financing. As a result, the company will cease operations in the country and lay off its entire workforce of 1,560 employees.

“We condemn the disastrous management of Getir, which did not know how to grow in Spain or follow a market strategy. Now their employees will suffer the most harm,” the union said in a statement.

Turkish-owned Getir Group grew to become the largest express food delivery service in Europe, expanding into seven countries and gradually acquiring rivals Gorilla and Frichti. The company even achieved Decacorn status after hitting $12 billion in sales in March 2022. But in the post-pandemic world, it has struggled to reach profitability.

Crystals, nozzles and magnets – how can cooling be made more environmentally friendly?

Rising inflation, tighter regulations on “dark stores” (where products are stored prior to delivery) and consumers’ return to grocery shopping on-site have left quick commerce businesses in limbo.

As its user base and revenue declined, the Getir Group has resorted to layoffs and mass store closures in recent months. In France alone, the company has debts of 17.6 million euros and has been placed under receivership by the commercial court in Paris.

At the time of writing, the startup declined to comment on its upcoming exit from Spain. According to the CCOO, however, the national legal requirements for redundant employees are met. These include an outplacement plan, a severance payment of 20 days per year with a maximum of 12 monthly installments, and a special agreement for people over 55 years of age.

The Getir example demonstrates an overarching trend in Europe: the appetite for fast food delivery is waning. Alongside Flink, Zapp and Gopuff, Getir is one of the last remaining companies in the region – where the quick commerce bubble appears to be bursting.

Comments are closed.