Delivery drivers for Getir, which employs its couriers full time rather than treating them as contractors.
Investors are hoping one of many 10-minute delivery apps cropping up will become the next Uber. Turkey’s Getir recently hit an eye-watering $2.8 billion valuation for its grocery delivery service. Its founder Nazim Salur spoke to Insider about making a low-margin business work. See more stories on Insider’s business page.
The hot new consumer trend for venture capital investors is grocery apps that promise deliveries in as little as 10 minutes.
The premise is fairly simple: Take your pick of groceries, alcohol, and other essentials from an app, pay, and a courier will deliver the items to your door shortly afterwards.
It’s a trend that founders and investors will prove popular with tech-savvy users already accustomed to on-demand services like Uber, and amid the pandemic.
Data analyzed for Insider by Pitchbook showed tech investors in Europe had plowed $1.6 billion into grocery delivery startups in 2021 so far, more than double the investment into the sector for the entirety of 2020.
Turkish grocery delivery app Getir bills itself as the original gangster. Founded by serial entrepreneur Nazim Salur in 2015, the company initially struggled to attract investment from top-tier investors.
Six years on, Getir is worth $2.6 billion after a funding round led by Facebook investor Sequoia and faces competition from European clones such as Gorillas, Dija, Weezy, Fancy, and Zapp.
The amounts of cash flooding into the sector and the accompanying valuations are puzzling, given that grocery delivery is famously low margin. Consumers will not pay high prices for fresh food and other everyday essentials. Add in the costs of picking, packing, and delivering these cheap items to your day, and there isn’t much in it for the retailer.
We spoke to Getir’s founder about why investors are seeing dollar signs in a tough sector.
This Q&A has been edited for length and clarity.
Insider: Can you tell me the origin