Home Business Getir is acquiring FreshDirect, its grocery delivery competitor

Getir is acquiring FreshDirect, its grocery delivery competitor

Getir is acquiring FreshDirect, its grocery delivery competitor

FreshDirecta New York City-based online grocery delivery company owned by Ahold Delhaize USA, was taken over by rival Getir, an instant food delivery service based in Istanbul. The context in which this acquisition takes place is the complete consolidation of the sector after the outbreak of the pandemic, because as we have observed in recent months there are many movements.

Grocery company FreshDirect was sold in 2020 to Netherlands-based Ahold Delhaize, owner of supermarket chain Stop & Shop, for $200 million to $300 million. Currently, the terms of the agreement with Getir are unknown, but it has been confirmed that FreshDirect’s 3,200 employees will retain their jobs.

«This was a difficult decision, especially given FreshDirect’s rich history in the New York City area” said JJ Fleeman, CEO of Ahold Delhaize USA. “However, our strength as a U.S. grocery retailer is the true omnichannel experience (a combination of online and in-store), where we have leading brands and market share, strong store density and online presence, and a long history of customer loyalty. and relationships. With this decision, we will increase our focus on omnichannel, our biggest growth opportunity“.

FreshDirect is headquartered in the Bronx and serves the New York tri-state area. The company employs 3,200 people and has a deep-rooted culture dedicated to providing the freshest, highest quality food. FreshDirect was founded in New York City in 2002 and was acquired by Ahold Delhaize USA in January 2021.

The deal will help Turkey-based Getir expand its presence in the United States, where the company is not yet as established as FreshDirect. While FreshDirect will leverage Getir’s technology to improve its services.

Getir strives for its growth

Last year, Getir faced financial difficulties due to rapid growth during the pandemic, which left the company unable to meet growing demand. According to the Financial Times, this situation has caused the company’s valuation to fall from $11.8 billion to $2.5 billion.

Getir has suspended its service in several European countries, including Spain, and made massive layoffs. In addition, it has had to face the numerous regulations that various organizations and governments have introduced at the European level to control it dark kitchen and the work of equestrian.

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