Getir, the famous Turkish rapid grocery delivery startup, has taken a significant step toward expanding its presence in the United States by acquiring FreshDirect, a prominent online market company based in the U.S.
The move comes as the industry tries to consolidate following the COVID-19 boom that saw ultra-fast delivery services multiply, boosted by demand from shoppers stuck at home. But a stronger-than-expected return to physical stores bruised the performance of Getir and other online-only retailers.
The takeover of the New York City-based online grocery company boasting an annual revenue of $650 million marks Getir's first significant expansion in the country from where it has received its most significant investments.
It comes just more than a week after Getir announced a strategic partnership with Işbank, which will see Türkiye's largest private lender invest $50 million in GetirFinans, which will be launched in order to serve startup's users within the scope of service model banking.
The investment and acquisition activities signal Getir's ramped-up efforts for renewed growth. It strives to return its story to solid growth by launching a successful distribution network and logistics company, a shopping experience, and a financial technology venture.
Getir uses technology to produce robust solutions in different fields such as warehouse, fast delivery, consumer and finance.
"We continue to work hard," said Nazım Salur, Getir's founder. "Last week, Işbank decided to invest in GetirFinans. This week, we signed the acquisition agreement with FreshDirect in the U.S."
The acquisition will lead to significant synergies between Getir and FreshDirect and emphasizes the rapid delivery pioneer's strategic ambitions to grow in the United States, the companies said in a joint statement.
FreshDirect will leverage Getir's technology and operational footprint to offer faster services to its loyal customer base, which will also benefit from easy access to Getir's quick convenience service. Getir, on the other hand, plans to capitalize on FreshDirect's high-quality and diverse fresh produce, making it even more attractive to its New York customers.
With over 20 years of service, FreshDirect has cultivated business ties with some of the region's top food growers and producers and has become a key local online grocery player.
Following the closing of the acquisition, FreshDirect will retain its brand name and continue to operate out of its facility in the Bronx, New York City. Both FreshDirect and Getir customers will continue to receive the same service as before.
Founded in 2002, FreshDirect has earned a reputable status in New York's food culture by delivering the freshest and highest quality goods to its customers. The company operates in three states, including New York, New Jersey, and Connecticut.
Getir initiated a vast global restructuring operation amid industry consolidation after reaching a valuation of $11.8 billion just last year. With recent investments totaling $500 million, the company achieved a valuation of $2.5 billion, convincing investors of its potential for a new growth story. Now, all eyes are on the company as it aims to deliver promising results and win over investors, taking its growth journey to new heights.
