‘Woefully overvalued’ grocery delivery firm Getir chases hefty funding as UK departure rumours abound
Rapid grocery delivery venture, Getir, is looking to wrap up a major funding round that it hopes will kill rumours about its solvency.
According to a report by Sky News, the capital injection will be led by Mubadala, the Abu Dhabi sovereign wealth fund, although it is expected to involve a smaller sum than the $500 million reported several months ago.
The move comes amid rumours that the Turkey-based company may be about to put its British operation into administration and that it is about to pull out of the country.
In a LinkedIn post, Brittain Ladd, a supply chain consultant and former Amazon executive, said: “I have stated clearly for over two years that Getir, which has a valuation of $12 billion, is woefully overvalued.”
“I don't believe Getir was ever legitimately worth $12 billion. I have also been consistent in stating that it will only be worth between $1 billion to $3 billion by Q1 or Q2 2024. I believe my prediction is wrong. I now believe that Getir may have already achieved a valuation of only $1 billion to $3 billion.”
Ladd said that he came to this conclusion based on his research, a review of corporate documents, and calls with current and former Getir executives.
He added: “I’m not surprised at what's happening. Like every other rapid grocery delivery company, Getir has too high of a cash burn rate ($80 million to $100 million monthly) and the business model is broken. I've written more articles and posts on this topic than anyone.”
“Rapid grocery delivery is the worst business model ever created. It is the only business model that guarantees money will be lost on every order and delivery. Note: DoorDash recently ended its 15-minute rapid grocery delivery service.”
“Rapid grocery delivery is similar to a business model used by a company in the USA called Kozmo that went out of business in 2001.”
Ladd claimed he warned Getir and other rapid grocery delivery companies that countries in Europe were tired of their operations and that laws barring the use of micro-fulfilment centres (MFC) were going to be implemented.
“I referred to the MFCs in Europe as "opium dens and crack houses" due to their dirty appearance and the fact people milled about the facilities at all hours of the day and night. I stated that the industry had to do better. I was right. Many countries in Europe have taken steps to drive out rapid grocery delivery companies by banning MFCs.”
Getir recently departed Spain, Portugal and France. In addition to the UK, reports are appearing that it is making plans to leave Italy and the Netherlands.
Ladd commented: “I strongly advise Mubadala, or any other Getir investor, not to invest any more capital into it without insisting that changes be made among the senior executives, and a skilled advisor be hired to review the strategy and operations.”
He concluded: “I am still a supporter of Getir. There are moves that the company can make to become profitable. However, I'm not convinced that its executive team will be willing to make the changes. It’s plausible it will be acquired but eventually going out of business is a real possibility.”
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