Getir buys Weezy. Here’s what it means for the UK rapid grocery delivery space
Yesterday, we reported that Turkish rapid grocery delivery venture Getir was set to acquire UK founded rival Weezy.
Earlier this year, Weezy raised $20 million in Series A funding to expand its ultra fast grocery delivery service across London and the UK.
Founded in 2015, Getir launched in the UK in January and delivers across London, Birmingham, Manchester, Brighton, Cardiff, Liverpool and Bristol. It expects to operate in up to 15 UK cities by the end of 2021.
So, what does it all mean for the booming UK rapid delivery space?
“It is with mixed emotions that I write this. On one hand, I'm glad that Weezy finally found a buyer. Let me be clear, had Getir not acquired Weezy, it would have gone out of business,” supply chain consultant and former Amazon executive, Brittain Ladd, says in a LinkedIn post.
He adds: “Does the acquisition of Weezy mean that the company lives? No. What it means is that Getir, by acquiring Weezy for pennies, has expanded their operations in London to include more dark stores and access to more couriers.”
“However, like Gopuff, who acquired Fancy and Dija only to kill the brand name of each, Getir will eventually eliminate Weezy's brand.”
Is Getir suddenly the big dog on the block?
Not according to Ladd. “Getir runs a manual, cumbersome, and expensive operation in London. Oh the tales I can tell about that company. To its credit, it is in the process of building a new warehouse and will eventually build others. Acquiring Weezy was a means to an end. Nothing more.”
So what now?
What's going to happen next in the UK rapid grocery delivery sector?
Zapp and Jiffy Grocery are the last companies of any prominence standing in London, that haven't been acquired, Ladd argues.
“Any number of things can happen. For example, Flink can acquire either company. There is also no reason why Getir can't or won't acquire Zapp or Jiffy Grocery.”
London is a huge market for groceries and rapid delivery is slowly but surely gaining traction. So who will eventually win the market in London and England?
“We have to begin by recognising that Tesco has the most to lose since they're the market leader in groceries,” Ladd writes.
“Tesco partnering with Gorillas is a brilliant move but it's not enough. Tesco would be wise to discuss strategy with my choice for rapid grocery delivery executive of the year, Kağan Sümer, CEO and Co-Founder Gorillas, to determine the best course of action.”
“What I recommend is that Gorillas acquire Flink. A combined Gorillas/Flink, supported by a strategic partnership with Tesco, would give Gorillas the edge in England over Deliveroo or Amazon. There is no rest for Sümer. He must continue to raise billions.”
Another option is Tesco acquiring Gopuff. “I really like this option as it provides Tesco with an opportunity to reenter the US., leveraging GoPuff, and also scale into a new channel across Europe,” Ladd comments.
Meanwhile, Delivery Hero, Getir, Gopuff, and DoorDash, can make additional moves in London.
And then there’s the wild card of who acquires Stuart? “Stuart is an incredible company and woefully undervalued,” Ladd concludes.
