I really like this article from Clara Ludmir. Great job, Clara.
LinkedIn members who read my posts know that I’ve stated since 2020 that most quick commerce companies are going to die a painful death. Nearly every prediction I made regarding the quick commerce industry has become a reality.
In 2021, I stated the following:
“Getir is valued at over $12B. I believe the company is drastically overvalued. Getir continues to make mistakes in their business model and the desire on the part of consumers to use Getir’s service is rapidly declining. Even if Getir acquires Gorillas, Flink, or another quick commerce company, it won’t help. Getir will only be worth between $1B to $2B by Q2 2024.”
Getir is leaving France and they’re shutting down operations in other locations. Getir has lost over half of their value. (I’m not picking on Getir. Gopuff, who claimed to be worth $15B in 2022, now has a valuation of between $1B to $3B.)
My advice to Getir is to acquire the company Ohi, which operates MFCs in the U.S. using a franchise model. Deliveries are made within two hours. However, in my opinion, Ohi can greatly expand their business by increasing the amount of next-day business that they provide. This will make Ohi a necessary partner as many brands want next-day delivery.
Ohi should also explore allowing their franchise owners to sell their 3PL services directly to brands.
An interesting strategy for Getir to explore is acquiring Ohi and forming a strategic partnership with AxleHire. AxleHire is one of the best delivery companies on the market and I highly recommend them. Frankly, the investors who have wasted billions on quick commerce should have acquired AxleHire instead. AxleHire should be viewed as an acquisition target.
Getir should definitely contact Beth Massa, the founder of Ozarka B.V. and discuss an investment, partnership or acquisition.
Getir is wasting millions on a failed business model and a flawed strategy. If Getir doesn’t pivot to what I suggest, Getir will go out of business in 2024. I have accurately predicted the demise of every leading quick commerce company. I strongly suggest Getir explore the options I presented.
As for quick commerce…the model has no future as retailers have invested the time, money and effort to create their own quick commerce delivery services for their customers.
According to the article:
“Ultra-fast delivery apps that introduced the concept of quick commerce need to reinvent their business model in order to survive. Lack of demand for 30-minute grocery delivery in Western Europe, mounting operational costs and inflation are making profitability highly unlikely, forcing startups like Getir to review their strategic vision for potential revival.”
I agree with Clara’s comments.
Getir has a big choice to make. I strongly suggest they choose wisely.
