Getir, a Turkish online grocery delivery startup backed by the venture capitalist Michael Moritz has now launched its rapid delivery service in London. How is it different from other online grocers? Its motor scooter riders deliver groceries and corner shop items to customers within 10 minutes of placing the orders.
Forays into highly competitive UK market
The official Twitter account of Getir announced the launch of the rapid grocery delivery service in London. With this, Turkish group enters the highly competitive UK market for last-mile delivery services with companies such as Deliveroo, Ocado and also 15-min grocery delivery chain Weezy.
— getir_UK (@getir_UK) January 27, 2021
Initially, the company will operate in five fulfillment centres in London and will increase the number to over 20 in the next few months. Also, it will expand to Zones 3 and 4, added Getir CEO Nazim Salur.
In London, Getir will operate via its distribution centres network that will stock a plethora of items. It won’t follow the franchise model it employs in its home country, Turkey.
Not stopping with London, the rapid grocery delivery service eyes to expand elsewhere in the UK later in 2021. Also, it intends to expand into two other European cities.
“We like big cities with chaotic traffic where people spend a lot of time on the road and have less time to shop,” Mr Salur said. “That’s a good demographic for the business.”
Funding to facilitate expansion
Earlier in January this year, Getir raised $128M (nearly £93.5M) funding from investors including billionaire Michael Moritz of Sequoia Capital to help fund the UK expansion. It started delivering items to the Zone 1 and 80 per cent of Zone 2 in London with this investment. Getir became one of Turkey’s most valuable startups with a valuation of $850M (nearly £620M) following the recent financing round of $123 million.
“I’m sure eventually it will consolidate,” said Sir Michael, who has invested in Getir through his personal vehicle Crankstart. “But that’s part of the fun of the chase.”
10 minutes delivery!
Founded in 2015 by Arkady Volozh, Doğancan Dalyan, Mert Salur, Nazım Salur, Serkan Borançılı and Tuncay Tütek, Getir assures to deliver groceries and corner shop items in just 10 minutes.
Getir is successful in Turkey fulfilling over 5 million orders over month. Its 10-minute delivery time frame is lesser than the 17-minute average assured by China’s Meituan for retail items in a pilot programme and 30-minute or lesser time frame advetised by the US start-up GoPuff.
Getir directly buys from wholesale suppliers and charges a nearly 10% markup on supermarket prices. It takes £1.99 as delivery fee on orders, which must total £10 or more. The company hired a team of full-time couriers and pays them £10.85 per hour, which is above the average in London.