Getir pulls out of the USA, but says FreshDirect will keep operating

April 19, 2024

Rapid delivery company Getir is winding down its operations in the United States as part of a broader plan to concentrate its resources on its home market of Turkey, “where it sees the biggest potential for long-term sustainable growth,” reports Grocery Dive.

But Getir said FreshDirect, the New York metropolitan area e-grocer it bought at the end of last year from Ahold Delhaize, “will continue its operations.” Getir did not provide further details about FreshDirect’s future, and a spokesperson declined to comment on whether the company intends to retain ownership of the online grocery company or put it up for sale.

“FreshDirect is committed to guaranteeing a seamless and uninterrupted process, maintaining the exceptional service its customers have grown accustomed to,” a FreshDirect spokesperson said in an email.

Getir said in the statement that it decided to leave the U.S.A.—along with the U.K., Germany, and the Netherlands—because those markets combined account for only 7% of its revenue. “Getir expresses its sincere appreciation for the dedication and hard work of all its employees in” the markets the company is exiting, the Istanbul-based company said.

Getir added that it has raised new capital from Mubadala and G Squared, and plans to “utilize these funds to bolster its competitive position in its core food and grocery delivery businesses in Turkey.”

Getir made its stateside debut in late 2021, joining startups like Fridge No More, 1520, and Buyk, which all also ultimately abandoned their efforts to offer high-speed grocery delivery service to shoppers in densely populated U.S. cities.

In early January, a few weeks after Getir completed its acquisition of FreshDirect, the e-grocer confirmed plans to restructure its corporate division and lay off more than 100 workers as part of that process.

At the end of January, Getir named a new CEO for FreshDirect, tapping Hatice Evren—former chief of Global Business Functions at Getir—for the top role and to also serve as U.S. Group CEO for Getir.

Getir’s decision to retrench will result in the elimination of around 6,000 positions across the markets it is leaving, according to a report by TechCrunch.

Research contact: @GroceryDive