Turkish rapid delivery startup Getir is set to cease its business in Spain and lay off its entire workforce there of 1,560 after failing to raise enough capital in a recent funding round, according to the country’s biggest trade union CCOO.

"We condemn the disastrous business management of Getir, which has not known how to grow or have a market strategy in Spain," the union said in a statement Friday. "Now its staff will suffer the biggest harm."

After their rapid expansion during the COVID-19 pandemic, quick commerce businesses have been hit by a fall in lockdown-driven demand for deliveries and rising interest rates, while investors are souring on loss-making tech firms.

Spain’s food delivery market is dominated by Delivery Hero-owned Glovo, the Netherlands’ Just Eat Takeaway and Uber Eats; all three gained market share after Britain’s Deliveroo exited the country in late 2021.

According to CCOO, Getir is offering laid-off workers 20 days’ severance pay per year with a limit of 12 monthly payments, an outplacement plan and a special agreement for people over 55, as required by law.

"We will fight to better these initial conditions and achieve improvements for the entire workforce," it added.

Le Monde reported, citing sources, on June 21 that Getir had decided to withdraw from France due to weak sales.

Founded in 2015 in Istanbul, Getir offers restaurant courier services and on-demand grocery deliveries via a mobile app. In March 2022, it closed a $768 million funding round that valued the startup at around $12 billion.

However, in an April deal, Getir reportedly only raised about $500 million, cutting its valuation almost in half to $6.5 billion. The company later denied these reports.

Getir is reportedly in talks to take over German rival Flink, according to the Financial Times, which cited people familiar with the negotiations.

In a $1.2-billion deal last December, Getir bought German grocery company Gorillas, merging two of Europe’s remaining companies offering groceries in minutes.