The Ultrafast Grocery Delivery Cage Match

Getir, Uber, DoorDash and others are racing to control market share in a notoriously unprofitable business

Kevin LaBuz
Marker
Published in
8 min readMar 27, 2022

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Source: Getir.

2022 has been a brutal year for unprofitable tech stocks. Many are trading 25–50% below recent highs. The carnage hasn’t yet filtered into the private markets. In March, ultrafast grocery delivery startup Getir raised a Series E at a nearly $12 billion valuation. Below, a look at Getir’s business model and mounting competition in ultrafast delivery.

Getir: What, Me Worry?

Getir was founded in 2015 in Istanbul by Nazim Salur, an entrepreneur who also started BiTaksi, a Turkish ride-hailing app. Since then, it’s built a strong European presence, operating in France, Germany, Italy, Portugal, the Netherlands, and Turkey. It entered the crowded US market in late 2021 in Boston, Chicago, and New York.

Getir’s business model is similar to other ultrafast grocery delivery start-ups like GoPuff or JOKR. It’s vertically integrated, owns inventory, and peppers cities with micro-fulfillment centers (MFCs) offering limited SKUs (about 1,500 per MFC) focused on everyday needs and high frequency categories like eggs and toilet paper. Salur sees vertical integration as critical to providing speedy delivery. Globally, Getir has over 32,000 employees, including its delivery drivers. Salur trumpets offering drivers better working conditions versus gig companies like DoorDash and Uber. It’s a low bar. By “better working conditions,” he means providing drivers with access to a bathroom, a place to sit, and coffee or tea.

While unprofitable tech stocks have been in the crosshairs the past six months, Getir has been Teflon (for now). Over the past year, its valuation has skyrocketed from $2.6 billion to nearly $12 billion. In June 2021, it raised a $550 million Series D at a $7.5 billion valuation. In March 2022, it raised a $768 million Series E led by Mubadala Investment Company, with participation from Abu Dhabi Growth Fund, Alpha Wave Global, Sequoia, and Tiger Global, at a valuation of $11.8 billion. That’s the same ballpark as Wayfair’s market cap despite the fact that in 2021, Wayfair generated $13.7 billion in revenue, $2.9 billion of gross profit, and had over 27 million…

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Kevin LaBuz
Marker

Head of IR & Corporate Development at 1stDibs. Previously finance at Etsy, Indeed, and internet equity research at Deutsche Bank. Find me on Twitter @kjlabuz.