From a $7.5B Unicorn to Crisis

Getir’s story from $7.5B to near bankruptcy

Getir shook up grocery delivery with its promise of 10-minute service. Founded in 2015, the startup rapidly expanded during the pandemic, hitting a $7.5 billion valuation by 2021. However, as it scaled, hiring and operational demands spiraled out of control, leaving Getir pleading with investors for funding to avoid bankruptcy.
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Startup Story of Getir

The 10-Minute Delivery Dream

Getir’s founders, Nazim Salur, Serkan Borançili, and Tuncay Tütek, identified a gap in the market for ultra-fast delivery of essentials. Their vision to deliver groceries and essentials within 10 minutes capitalized on the growing demand for convenience-driven services, competing with giants like Uber Eats and Deliveroo.

Scaling at Breakneck Speed

After its initial success in Istanbul, Getir quickly seized the opportunity to expand its ultra-fast delivery model globally. Backed by over $1 billion in funding, the startup entered key markets such as the UK, France, and the U.S. by 2021, scaling at a rapid pace during the pandemic.

A key factor in Getir’s growth was its network of "dark stores"—small, strategically placed warehouses enabling ultra-fast deliveries. By 2021, this model helped the startup reach over 20 million users and process millions of orders annually. However, its rapid expansion required a workforce of more than 32,000, creating logistical challenges that quickly spiraled into a logistical nightmare.

To enter larger markets, Getir rapidly hired thousands, driving costs out of control and pushing the startup closer to bankruptcy. So, what went wrong? The answer lies in the challenges of managing hiring and scale as the company expanded too quickly.

The Cost of Rapid Scaling and Near Bankruptcy

Getir’s aggressive global expansion came at a steep cost. As the startup rapidly entered markets like the U.S., UK, and France, its operational expenses soared, far outpacing revenues. While demand for its 10-minute delivery service was high, Getir struggled to turn that demand into sustainable profitability.

Key to this problem was Getir’s enormous overhead—running its vast network of "dark stores" and managing a bloated workforce of over 32,000 employees across multiple countries.

Despite raising over $1 billion in funding, Getir's rapid scaling was unsustainable. The startup’s business model, heavily reliant on venture capital, was not generating the revenue needed to cover its operational costs. Even with millions of users their margins were too thin to support the infrastructure required for such ultra-fast delivery.

In 2022, Getir faced a harsh reality familiar to many fast-growing startups and was running out of cash. The startup began losing millions each month and Getir was getting dangerously close to bankruptcy.

Refocusing on Istanbul and Fighting for Survival

To avoid collapse, Getir was forced to make hard decisions. It exited key markets like the U.S. and parts of Europe and decided to lay off a large part of the team to maintain long-term viability. After expanding aggressively into new markets, Getir found itself needing to streamline operations and restructure parts of its workforce.

With its global expansion scaled back, Getir is now refocusing on its core market in Istanbul. Getir remains heavily dependent on fresh investments to avoid bankruptcy, as its once $7.5 billion valuation has plummeted due to ongoing financial struggles.

Written by Rahul & Aryaman from Scale Newsletter

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