Back of a fag packet calculations: Gophr boss Seb Robert talks Getir retreat from US and European markets

Seb Robert, CEO and Founder at last mile, on-demand specialist, Gophr, has taken to social media to address quick commerce firm Getir’s decision to quit the UK, Germany, the Netherlands and the US and focus on its home market of Turkey.

This was reported by RTIH earlier this month, and confirmed yesterday.

Robert said: “Very sorry for the team and employees over there.”

“I genuinely thought Getir had a good chance of cracking it because they'd been at it for so long in Turkey that I felt if anyone would have a significant advantage over competitors it was them, even with the elevated costs associated with operating in major European cities.”

He added: “After bearing witness to the amounts of cash burned on restaurant delivery (peak madness; 2014–2018) we really couldn't understand what the VC's that backed 15-minute grocery delivery thought they were doing.”

“Even back of a fag packet calculations would tell you the unit economics were nigh on impossible. Figured there must be some sort of secret sauce. Sadly not the case.”

“Something was amiss”

Getir is making the right move, according to Brittain Ladd, a supply chain consultant and former Amazon executive.

In a LinkedIn post, he noted that, in December 2023, the company announced the acquisition of FreshDirect, an online grocery retailer in New York City.

“I was immediately sceptical of the announcement due to Getir's cash burn rate of Euro 50 million monthly, and its dwindling cash pile. Something was amiss. There was. Getir did not "acquire" FreshDirect, it was paid to take over FreshDirect.”

He added: “Getir is a company that does a better job of writing glowing press releases about themselves than growing their business. In 2022, Getir, which has raised over $1 billion, was valued at $12 billion by its investors Tiger Global Management, Sequoia Capital, and Mubadala.”

“I stated in multiple posts that the valuation was false and that it was only worth between $1 billion to $3 billion. Note: The individuals who approved the investments in Getir should be fired.”

“I also stated in posts that Getir would go out of business in 2024 or 2025 unless it exited all of Europe, including the UK and Germany, and retreated back to its home country of Turkey.”

Getir, however, chose to keep expanding its operations and maintained a multi-million pound sponsorship deal with Premier League club Tottenham Hotspur. It acquired Gorillas and hinted that it was trying to merge with the German rapid grocery delivery company Flink.

The opportunity to be paid $151 million by Ahold Delhaize to take over FreshDirect and also receive a $30 million investment from Ahold Delhaize, was too good to turn down.

According to Ladd, senior executives viewed the cash as a lifeline and also an opportunity to convince their investors to view Getir as, “a growing major player in groceries in the largest city in the USA," according to a source.

It didn’t work. Getir is under "intense pressure" from investors to reduce costs and cash burn rate.

And it now has no choice but to face up to reality, Ladd believes. In addition to exiting Europe and ending the sponsorship agreement with Spurs, it must also either divest FreshDirect or give it away.

Ladd said: “Ahold Delhaize tried to divest FreshDirect for several months but couldn't find a buyer. I can make the argument that Amazon should acquire FreshDirect and rebrand it as Amazon Fresh.”

“Trader Joe’s, who is extremely popular in NYC should assess an acquisition. Walmart could acquire the company and enter NYC. C&S Wholesale Grocers should acquire FreshDirect as it would look good to the FTC.”

He concluded: “In my opinion, I believe the company that would benefit the most from acquiring FreshDirect is Gopuff. I’ve been critical of Gopuff on several occasions.”

“However, the company’s founders, Yakir Gola and Rafael Ilishayev, have matured, and they’ve made several wise decisions that have made Gopuff a better company. I’m confident that Yakir and Rafael can succeed if they acquire FreshDirect and rebrand it as Gopuff.”

Getir did not respond to our request for comment.