Getir, a Turkish rapid grocery delivery startup, pioneered the concept of offering convenience-store items in as little as 10 minutes in Turkey several years ago. Through its mobile app, it offers an on-demand “ultrafast” delivery service for a selection of 1,500 everyday items available 7 days a week, day and night. Getir increased its revenues five-fold last year and is likely to do so again in 2021.
After the recent funding round, the company’s value tripled to over $7.5bn. This means Getir is now worth more than food delivery apps Deliveroo and Grubhub, as well as UK supermarkets Morrisons and Marks and Spencer. The company is now operating in 33 cities in Turkey and has already launched operations in the UK, Netherlands, Germany and France.
Formerly a steadily growing but small niche, the market for online groceries which can be delivered in less than 20 minutes from local “dark stores”, has been rapidly developing in 2020, fueled by pandemic-related lockdowns and a rise in online shopping. The pandemic has forced shoppers to change their priorities, and many have turned to online grocery shopping services for the first time. The sudden focus on grocery delivery looks set to alter consumer behavior well after the pandemic subsides.
More than $14bn has been injected into the instant delivery market globally since the start of 2020, with investors racing to get a foothold in rapid delivery companies. As returns are exciting, the competition is also intensifying.
Going forward, the success in the market will depend on how well online grocers meet surging demand. The services best able to handle surging order volume and provide a consistent, reliable service should be able to thrive even after the pandemic subsides.