Turkish rapid food-tech delivery company Getir valued at $12bn in 2022 has pulled the plug on its UK and US operations, as well as its remaining European operations after it burned up cash as orders plummeted.
Launched in the middle of the pandemic in September 2021 with promotional offers that were too good to be trues (and they were) Getir went the same way as other gig economy rapid delivery services such as Jiffy, Bother, Oja and Gorillas (which had been bought by Getir).
Getir who promised a 10-minute delivery eventually hiked prices as funding streams were burned through and dried up as post pandemic customers started eating out or buying in food.
Tech start-ups are reliant on continuous cash flow and investors cash injections – Uber Eats made its first operating profit last year, having been founded in 2009, equating to 14 years of losses.
Getir created ‘dark stores’ (fulfilment centres with groceries and household essentials) and market leaders Deliveroo, Just Eat and Uber Eats stole Getir’s lunch by offering grocery deliveries with lower overheads in addition to their existing restaurant service while Ocado ramped up its same-day service with its Zoom based service.
A company statement says: “Getir has raised a new investment round, led by Mubadala and G Squared. Getir will utilise these funds to bolster its competitive position in its core food and grocery delivery businesses in Turkey.”
Clearly, Getir’s investors were unwilling to see good money thrown after bad.
Getir paid drivers by the hour – others in rapid food delivery pay them by delivery. The gig economy is a cut throat, race to the bottom world based on low pay and precarious work.
The need for an incoming Labour Government to introduce proper Government regulation on pay and working conditions decent employment rights. The need to regulate and protect workers from exploitation has never been starker.
