Rapid-delivery app Getir is officially offering its services in New York City since November 2021. The Turkish app’s mission is to deliver essential goods to people’s doors in 10 minutes tops.
The distinctive purple-and-yellow uniforms are now zapping through the streets of the city that never sleeps.
“We played basketball in Turkey and then the EuroLeague. And now it’s time to show our skills and try to make it in the NBA.” With this sports metaphor, Getir CEO Nazim Salur explained to CNBC his intent to take over the US online food-ordering market.
Getir started out in Istanbul back in 2015. After years of resounding success in the Anatolian country, it branched out. It has crossed many borders and conquered the hearts of more than three million people so far.
Now, the grocery delivery app is determined to make it big in the US, starting with New York. That said, it plans to expand to “many more” cities throughout 2022.
But does it have what it takes to thrive on this side of the Atlantic?
The Rapid-Delivery Race Is Ruthless
The pandemic has accelerated the growth of the grocery delivery industry in the US. Revenue went from $1.2 billion to $6.4 billion in a little over two years. This prompted many companies to try and get their piece of the cake.
However, “it’s very challenging to get the unit economics to work in this sector, and just a few [companies] will survive,” muses renowned investor Christian Angermayer.
And the numbers back him up.
The fact is that after seven years on the market, the biggest food delivery app in the world still isn’t profitable.
Plus, would-be-competitor 1520 exhausted its funding after just one year in business. The company ceased operations earlier this month and currently exhorts its former users to “Download Getir now!”
Like nearly 70% of marketing campaigns, Getir’s popularization strategy relies on online advertising. But its targeted ads and newly acquired funding aren’t a guarantee for success.
Competition is tough. And the leader of the US restaurant-delivery industry, DoorDash, just decided to go into the grocery business, too.
A DashMart opened in NYC on December 20, 2021. It offers the exact same thing Getir is known for—getting groceries, household items, and appointed restaurant goods to users’ doors in 10 minutes or so.
Perhaps if the industry continues to grow as it has for the last couple of years, it might get big enough for all the competitors in the business.