Rapid grocery delivery specialist Getir acquires New York-based FreshDirect from Ahold Delhaize USA

Getir, a Turkish ultrafast grocery delivery firm, is to acquire New York City-based online grocery company FreshDirect from Ahold Delhaize USA.

The deal is expected to close within this month. Financial terms were not disclosed.

According to a Getir press release: “The acquisition will lead to significant synergies between Getir and FreshDirect and emphasises our strategic ambitions to grow in the United States.”

'“FreshDirect will leverage our technology and operational footprint to offer faster services to its loyal customer base, which will also benefit from easy access to our quick convenience service.” 

FreshDirect will, meanwhile, enable Getir to increase the quality and breadth of its product range, especially regarding fresh products, as it looks to make its offering attractive to New York customers. 

Following the closing of the acquisition, FreshDirect will retain its brand name and continue to operate out of its facility in the Bronx, New York City.

UNDER PRESSURE

Getir recently announced a global restructuring initiative, with plans to cut 2,500 jobs across five countries, or 10.9% of its total workforce.

It will continue to operate in Turkey, the UK, Germany, the Netherlands and the United States.

The company had previously reported its exit from Italy, Spain, and Portugal.

It said in a press statement: “We will restructure the global organisation to significantly increase operational efficiency.”

“The Getir network consists of roughly 23,000 people across five countries. This number includes couriers, pickers, and office employees. Regrettably, we intend to reduce our team and, with a heavy heart, part ways with approximately 2,500 talented employees across our markets.”

It added: “Decisions like these are never taken lightly. However, Getir is determined to do right by all employees affected by the process in line with its values and in full compliance with local laws. We are very grateful to all colleagues for their hard work, dedication, and significant contributions to the business.”

It concluded: “The company remains fully committed to the future of the industry it pioneered eight years ago and will continue to lead it in the future.”

FUNDING ROUND

In July, we reported that Getir was looking to wrap up a major funding round that it hoped would kill rumours about its solvency.

According to a report by Sky News, the capital injection would be led by Mubadala, the Abu Dhabi sovereign wealth fund, although it was expected to involve a smaller sum than the $500 million reported several months earlier.