Even as ultrafast grocers struggle worldwide, Getir is reportedly acquiring Gorillas, with help from investors.
According to European startup news outlet Sifted, sources familiar with the matter say that Getir, based in Turkey, will soon announce the deal to buy its competitor, with an additional $100 million investment in the Berlin-based company from Gorillas’ backers.
The news builds on previous reports of Getir’s plans to purchase the company, which did not include the stipulation of extra funding from Gorilla’s investors.
The report comes at the tail end of a challenging year for ultrafast grocers, suggesting that, even after the challenges it has faced this year, Getir is optimistic about its growth potential going forward. A company memo in May showed that the ultrafast grocer intended to lay off 14% of the staff at its global headquarters.
Indeed, around the world, quick commerce firms have been facing similar challenges in the recent past.
In July, a Gopuff memo showed the company laying off around 1,500 employees and shutting down 76 warehouses — 12% of its network. Also in July, Gorillas pulled out of Italy, a move that followed on the heels of the company’s departure from Belgium in June. These are only a few of the moves ultrafast grocers have made to scale back both geographically and among personnel.
Yet major retailers and same-day delivery aggregators appear to have a more hopeful outlook on ultrafast delivery. A week ago (Nov. 30), the National Association of Convenience Stores (NACS) reported that Couche-Tard’s Circle K brand is piloting quick commerce in partnership with ultrafast grocer Food Rocket.
Plus, in October, Uber Eats announced a partnership with British supermarket chain Iceland Foods to offer delivery “in as little as 20 minutes.” Also in October, United Kingdom-based food delivery service Deliveroo shared that it has been expanding its ultrafast delivery service Hop.
In fact, demand for grocery delivery is on the rise in spite of economic challenges.
In the U.S., for instance, research from the latest edition of PYMNTS’ ConnectedEconomy™ study, The ConnectedEconomy™ Monthly Report: The Gender Divide, found that in October, 42% of men and 28% of women used a same-day grocery delivery website. These figures were up from 30% and 21% respectively in November 2021, the earliest month on record, the study revealed.
Get the study: The ConnectedEconomy™ Monthly Report: The Gender Divide
Additionally, research from PYMNTS’ new study “Super Apps for the Super Connected,” created in collaboration with PayPal, which drew from a survey of more than 9,900 consumers across the United States, the U.K., Australia and Germany, found that 76% of millennials in these four countries had bought groceries online in the previous 30 days. Plus, 74% of bridge millennials and Generation X consumers said the same.
Read the report: Super Apps for the Super Connected
This widespread demand for eGrocery options suggests that Getir’s optimism is not entirely unfounded, and consumers may return to paying the premium for convenience when the economy bounces back.
“We are certainly seeing some degradation in the funding environment for the ultrafast convenience providers,” Larry Liu, CEO of eGrocer Weee, told PYMNTS in an interview earlier this year, “but overall, online grocery adoption and customer growth clearly demonstrates that the eCommerce grocery market is underpenetrated and has tremendous potential.”