Getir is planning to sell off dozens of bikes, chiller cabinets and delivery boxes as it closes several dark stores around the UK.
According to The Grocer, the rapid grocer has been reducing the number of its UK dark stores, which at the end of last year was at 96.
The equipment sell-off comes as Getir reduces its presence in Europe, where it had expanded at pace over the last two years.
Last month, Getir pulled out of Spain and Portugal where it laid off its entire workforce, and the company has also now ceased all operations in France.
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, amid rumours that the delivery platform is heading for insolvency.
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Industry expert and former Amazon executive, Brittain Ladd told The Grocer: “Like every rapid grocery delivery company, Getir has too high of a cash burn rate and the business model is broken.
“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.”
He added: “Getir is in a world of hurt. “If Getir can’t raise capital, they will go out of business in the next three to nine months.”
In May, Getir’s UK boss Chris Chaaya exited the business amid a ‘period of uncertainty’ for the grocery quick delivery firm.
2 Comments. Leave new
Comes as no surprise to me. Crazy business model.
Useless business model that only works when people legally cannot walk to their local shop, awful brand name. Let the fools in Dubai blow more money down the drain it will never be a feasible business model in an industry with extremely small margins