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Turkish founders assume minority role in Getir’s restructuring

Turkish founders assume minority role in Getir's restructuring Employees of Turkish fast grocery-delivery company Getir rides to deliver an online grocery delivery (Reuters Photo)
By Newsroom
Jun 25, 2024 8:18 AM

Investors in Getir, the Turkish food delivery giant, have sanctioned a significant restructuring following the company’s decision to withdraw from the UK market. The restructuring involves dividing Getir into two independent entities, injecting up to $250 million (£197.5 million) in fresh capital.

This indicates a reduced role for Turkish stakeholders in Getir’s core leadership, placing them as minorities within Mubadala’s leadership framework.

Turkish stakeholders’ reduced role

During an extraordinary general meeting held on Sunday, shareholders endorsed the division of Getir into two distinct businesses.

The first entity will focus on food and grocery delivery services within Türkiye and will be predominantly owned and managed by Mubadala, the Abu Dhabi state investment fund.

Founder’s shift and strategic adjustment

This move effectively reduces the operational involvement of Nazim Salur, the company’s founder, who will now oversee the second standalone business comprising Getir’s remaining assets, including Getir Drive and BiTaksi, the ride-hailing service.

Getir’s retreat from the UK and other European markets earlier this year marks a strategic pivot for the once £10 billion-valued company. The restructuring is part of a broader effort to consolidate operations and optimize resources, buoyed by Mubadala’s optimistic outlook on the Turkish market.

Financial support and job impact

The funding from Mubadala will not only facilitate the orderly wind-down of Getir’s UK and European operations but also address outstanding financial commitments, including sponsorships such as Tottenham Hotspur FC’s training kit.

The closure of Getir’s UK operations is anticipated to result in significant job losses, underscoring the challenges faced by tech-driven food retailing firms amid shifting market dynamics.

Despite experiencing rapid growth and attracting substantial investments during the pandemic, the downsizing of Getir highlights a broader trend where similar firms grapple with financial pressures and industry consolidation.

In a strategic move last year, Getir acquired its rival Gorillas in a $1.2 billion stock-based transaction, signaling ambitious expansion plans that now face recalibration in light of recent developments.

Last Updated:  Jun 25, 2024 12:11 PM