April 22, 2024

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Delivery Startup Getir to Buy UK’s Weezy

The ultrafast grocery delivery market in Europe is buzzing with consolidation moves as companies look to mergers and acquisitions, a strategy to remain competitive in the quickly growing space.

On Tuesday (Nov. 23), Turkish startup Getir, which specializes in 10-minute delivery, agreed to acquire British rival Weezy as part of its plans to further expand into the U.K. The Istanbul-based company currently operates across 15 locations in the U.K., including London, Manchester, Birmingham and Liverpool.

Commenting on the deal, Turancan Salur, Getir’s U.K. general manager, said that “teaming up with Weezy, which has quickly established itself across the U.K., is an exciting opportunity and one that complements our people-first belief and business approach.”

Read more: Turkish Grocery Delivery App Getir Adds More Investment Capital

Founded in December 2019, Weezy’s business exploded during the coronavirus pandemic as more people shifted to shopping online for their essential items.

Today, the U.K.-based company operates in London, Manchester, Brighton and Bristol, employing 700 employees, including delivery drivers. And with the newly merged company, that number is projected to hit a total workforce of more than 4,000 employees globally.

Related news: Turkish Delivery Firm Getir Nets $7.5B Valuation, 35% Larger Than Grubhub

Getir and its network of scooter drivers fulfill more than five million orders per month in Turkey alone, according to a PYMNTS report. The company’s valuation topped $7.5 billion in June this year, after it raised $550 million in funding from investors.

Speeding up Grocery Delivery Across Europe

And it’s not just in the U.K.

The fast-growing delivery trend is gaining traction across Europe, as consumers’ appetite for quicker options continues to soar and more established players join forces with emerging challenger firms.

See also: Gorillas Aims to Bring eGrocery Into the Future With Lightning-Fast Delivery

And: German Delivery Hero Buys Minority Stake in Gorillas Delivery Startup

Last month, Delivery Hero announced it was backing on-demand, Berlin-based grocery delivery platform Gorillas with a $235 million investment for an 8% stake in the company, leading the startup’s Series C funding round.

Launched in 2020, Gorillas offers last-mile on-demand delivery of grocery items and other essentials, opening more than 140 warehouses and delivering 4.5 million orders in the first six months of this year. The firm currently operates across nine countries — the U.K., the U.S., Belgium, Denmark, France, Germany, Italy, the Netherlands and Spain.

Further reading: France’s 15-Minute Grocery Delivery Startup Cajoo Raises $40M as eGrocery Space Grows

French retailer giant Carrefour also made its foray into the ultra-fast grocery delivery space in September, injecting $40 million for a minority stake in French grocery startup Cajoo. The six-month-old startup delivers grocery orders by bicycle within 15 minutes, and currently operates 20 microfulfillment centers in 10 major cities across France.

Related news: Carrefour, Deliveroo Bring 30-Minute Grocery Delivery to France

Earlier this year, the retail behemoth extended its partnership with British online food delivery company Deliveroo, expanding its 30-minute on-demand grocery delivery service in Belgium, Italy and Spain to its French home market. 

And in May, the French multinational announced positive results following the launch of its partnership with Uber Eats in France a year prior. From delivering products to consumers in 30 minutes, products were “available in 10 to 20 minutes” in over 100 cities across France, the company said in a statement, adding that more than 1,000 of its stores will be accessible via Uber Eats throughout France by the end of this year.

Read also: French Retailer Carrefour Pursues Quick eCommerce Ambitions in Europe With Uneven Q3 Growth Performance

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NEW PYMNTS DATA: THE 2021 HOLIDAY SHOPPING OUTLOOK

About: It’s almost go time for the holiday shopping season, and nearly 90% of U.S. consumers plan to make at least some of their purchases online — 13% more than did in 2020. The 2021 Holiday Shopping Outlook, PYMNTS surveyed more than 3,600 consumers to learn what is driving online sales this holiday season and the impact of product availability and personalized rewards on merchant preference.

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