The consolidation in quick commerce continues as Turkish Getir and its German counterpart Gorillas – both of whom have recently taken over other competitors – are in acquisition talks.
Consolidation moves on
The acquisition talks have progressed well, the Bloomberg agency reports based on internal sources. Getir is said to be planning to buy Berlin-based Gorillas in a deal that would be financed partly with capital and partly with shares.
The move is not a major surprise, as the movement towards more consolidation in quick commerce has been going on for a while. The sector’s business model sees high costs and low margins, as well as an increasing fight with local governments who are concerned with the eyesores and other discomforts that dark stores are creating in residential areas. Moreover, it has become much harder for quick commerce start-ups to gather enough capital during this cost-of-living crisis.
Slimming down
Both parties have been on the winning end of the consolidation in the sector recently: while Getir acquired its British competitor Weezy, Gorillas bought Frichti from France. Meanwhile, both companies have also had to announce major cost-cutting measures. Gorillas was forced to leave Belgium, Denmark, Italy and Spain in order to focus on its five main markets, cutting an additional 300 jobs in its Berlin HQ. Getir, on the other hand, had to let go one in seven employees – almost 4500 employees in total – because of “rising inflation and worsening macroeconomic circumstances worldwide”.
Gorillas is currently still active in France, Germany, the Netherlands, the United Kingdom and the United States. Getir is active in these five markets as well, and additionally also in Italy, Portugal, Spain and (obviously) Turkey.
