Turkish Delivery Startup Getir To Exit Spain — Retail Bum

Turkish delivery startup Getir is preparing to leave Spain and lay off its entire workforce of 1,560 people after failing to raise capital to support its business in the country.

The announcement drew immediate criticism from the country’s largest trade union CCOO, which called out the company for its poor business management practices.

“We condemn the disastrous business management of Getir, which has not known how to grow or have a market strategy in Spain,” the union said. “Now its staff will suffer the biggest harm.”

The company is offering impacted workers 20 days’ worth of severance pay per year with a maximum of 12 monthly payments, an outplacement service, and a special agreement for those aged over 55.

In Spain, Getir faced stiff competition from players such as Delivery Hero-owned Glove, Just Eat Takeaway, and Uber Eats — all of which have gained market share following Deliveroo’s exit from the country in late 2021, according to Reuters.

Unfortunately, Spain is not the only country Getir is planning to leave. The company will also exit France due to the continued lack of demand.

The exits are the latest signs of the company’s ongoing troubles, which were first revealed when Getir managed to raise just $500 million, cutting its valuation by half to $6.5 billion.

Still, Getir is continuing its pursuit of gaining market share through acquisitions. The company is reportedly in talks to acquire German rival Flink. And in December 2023, it acquired German grocery service Gorillas for $1.2 billion, reportedly merging two of the remaining last-minute delivery services in Europe.

Originally published at https://retailbum.com on July 5, 2023.