Getir is auctioning off dozens of delivery bikes, chiller cabinets, delivery boxes and shelving as it shutters dark stores in the UK.
The listing on the website of commercial property agent Sanderson Weatherall, seen by The Grocer, notes the items are for sale “due to the closure of retail hubs” and must be cleared by the end of the month. The lot includes scores of boxed and unused chest freezers.
It is understood the rapid grocer has been reducing the number of its UK dark stores, which at Christmas stood at 96. It would not share what the count now stood at.
The Grocer has also heard from several suppliers that Getir is weeks behind on payments for stock, with some opting to put orders on hold until they are paid.
The equipment sell-off comes as Getir reduces its presence in Europe, where it had expanded at pace over the past two years. Last month, Getir pulled out of Spain and Portugal, and laid off its entire workforce there. The company announced it was ceasing operations in France earlier that month and filed for bankruptcy there. According to The Handelsblatt newspaper, it is planning to also depart Italy and the Netherlands. The German publication, citing sources familiar to the situation, reported the company was burning up to $100m a month.
The company is now seeking new funding – understood to be around $500m – and is close to securing a deal with Abu Dhabi sovereign wealth fund Mubadala. Mubadala said it was in “advanced discussions” with Getir, with which it has been an investor since 2021.
Sky News reported “intensifying rumours about its solvency” and suggested it could put its UK operations into administration.
“There are several incorrect claims being shared about Getir,” a spokeswoman told The Grocer, but refused to go further.
Getir launched in the UK in early 2021, one of a slew of rapid grocery providers promising delivery of items within 15 minutes. The ‘instant needs’ players expanded their dark store network quickly, and expanded into new regions around the world. However, many of them struggled to survive as investor cash and confidence in their unprofitable operations soon dried up.
It led to a wave of consolidation in the burgeoning sector – led by Getir and its US rival Gopuff. In the UK Gopuff acquired Dija and Fancy, while Getir bought Weezy. In December last year Getir acquired major European player Gorillas, in a move that “underscores how Getir leads consolidation in this sector” it said at the time.
Getir and the remaining players have been desperately trying to cut costs over the past year, considerably reducing headcounts and pulling out of multiple countries. Getir moved to close several Gorillas dark stores in the UK after its acquisition.
“Like every rapid grocery delivery company, Getir has too high of a cash burn rate and the business model is broken,” said industry expert and former Amazon executive Brittain Ladd. “Rapid grocery delivery is the worst business model ever created. It is the only business model that guarantees money will be lost on every order and delivery.
“Getir is in a world of hurt,” Ladd added. “If Getir can’t raise capital, they will go out of business in the next three to nine months.”
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