Farukh Kitchlew | Feb 19, 2024 | 0
Getir Struggles: Layoffs & Funding Hunt
It has been another difficult week for European e-commerce enterprises. In the most recent development, Turkish startup Getir announced that it struggles to pay some invoices in Germany. It will lay off more than 10% of its global workers as the speedy delivery service seeks new funding and attempts to transform its cash-hungry company.
Getir, based in Istanbul, announced to Bloomberg that it will lay off approximately 2,500 staff while continuing to operate in its five present regions.
Businesses that claimed ultra-fast delivery of items from perishables to birth control are slashing expenses and merging across the sector. Investors who put money into the industry during the COVID-19 outbreak want to see an obvious path to profit.
Hatice Evren, the company’s head of core shipment, stated that Getir is in the midst of a financing round. There is currently less enthusiasm to invest in tech startups. At the end of the week, the company will inform employees about their layoffs.
Accounts from over a half-dozen current and past Getir workers, who wanted not to be named because the data is not public, show how the business has suffered in recent months with decreased demand.
Founded in 2015 to provide grocery delivery, Getir swiftly developed as it catered to clients trapped indoors during pandemic-era lockdowns. It has generated around $1.8 billion in seven rounds of fundraising. However, less than a year ago, the business acquired Gorillas, a rival with a strong foothold in Germany and the United Kingdom that grew rapidly during the pandemic. That resulted in Getir slashing hours for warehouse employees and riders in Germany and other branches. It indicated the company’s current crisis. On the other hand, the company’s future planning has not been made public, so we have no words to describe what they have in store for the future.