- Ultrafast grocery delivery company Getir has acquired rival firm Gorillas, according to an announcement late last week.
- The deal values Gorillas at $1.2 billion and values the combined companies at around $10 billion, according to a Financial Times report.
- This marks the latest winnowing down of competitors in a rapid delivery industry that rode a wave of investment early in the pandemic but has struggled to grow in the U.S.
By acquiring one of its closest rivals, Getir has bolstered its position as one of the few remaining ultrafast delivery companies remaining in the U.S. and Europe. But it’s not clear how much more room for growth there is in the cost-intensive, highly competitive space.
In the U.S., ultrafast grocery delivery has struggled so far to expand beyond a very small number of major cities. Gorillas operates in around 20 neighborhoods across three New York City boroughs, while Getir delivers in that city as well as Chicago and Boston.
In Europe, where population-dense cities, lower operating costs and a more enthusiastic consumer base have helped fuel growth, both companies operate across several countries, including France, Spain, Germany and the U.K.
After experiencing explosive growth early in the pandemic, when lockdowns and safety concerns fueled online grocery shopping, ultrafast delivery firms have had a much more challenging time this year. Inflation has changed consumers’ shopping habits, while investors have soured on “lossmaking tech start-ups,” according to the Financial Times. Both Getir and Gorillas initiated sweeping layoffs this year to cut costs.
In New York City, the main proving ground for ultrafast delivery in the U.S., several delivery firms have exited almost as quickly as they set up shop, including Fridge No More, 1520 and Jokr, which is now focused on its operations in Latin America.
In the U.S., Getir’s main rival will be Gopuff, which operates in suburban and urban markets across the U.S. as well as college campuses.
"Markets go up and down, but consumers love our service and convenience is here to stay. The super fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created 7 years ago" Nazim Salur, Getir’s founder, said in a statement.