Ultrafast grocery delivery giant Getir said it has agreed to acquire rival Gorillas in a transaction reportedly valued at $1.2 billion.
Both companies have a broad European presence but only entered the United States last year. Berlin-based Gorillas, which promises 10-minute delivery from a network of micro-fulfillment warehouses, began operating in New York City in May 2021, while Istanbul-based Getir launched in Chicago last November, followed by New York and Boston.
The consolidation comes as other ultrafast delivery services, including GoPuff and Jokr, have struggled in the wake of declining interest in delivery following the pandemic. Earlier this year Jokr said it was shutting down its U.S. operations, and GoPuff last month said it had laid off another 250 employees, after announcing hundreds of additional layoffs earlier this year.
Other grocery delivery companies, including Instacart, DoorDash, and Uber Eats, have also expanded their fast-delivery capabilities in the U.S.
Getir, founded in 2015, now operates in nine countries and sees itself as a consolidator in the segment, said Nazim Salur, founder of the company.
“Markets go up and down, but consumers love our service, and convenience is here to stay,” he said in a statement. “The super-fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created seven years ago.”
Getir has said that its business model differs from some other delivery firms in that its delivery drivers are not gig workers and receive benefits and tips. The company also said it seeks to be a responsible steward of the environment by conducting deliveries using zero-emissions e-bikes and mopeds.
