Rapid-grocery delivery startup Getir has acquired rival Gorillas in a transaction reportedly valued at $1.2 billion.
Serkan Borancili, who co-founded Getir in 2015, shared the price tag on Twitter and said the combined company was now stronger.
The deal price is significantly below Gorillas’ $2.1 billion valuation in its previous funding round in late 2021—an indication of the challenges faced as companies battle to achieve profitability, join forces or fold.
“The move underlines that Getir is leading the consolidation,” the company said in a statement.
The startups, which advertise grocery delivery in minutes, both have a broad European presence but only entered the United States last year.
Berlin-based Gorillas began operating in New York City in May 2021, while Istanbul-based Getir launched in Chicago last November, followed by New York and Boston.
The consolidation comes as other ultra-fast delivery services have struggled in the wake of declining interest in delivery following the pandemic, regulations placed on dark stores and inflation shifting some consumer buying habits.
Jokr shut down its U.S. operations earlier this year, Fridge No More and 1520 shuttered in 2021, and Gopuff —one of Getir’s remaining competitors, recently laid off 250 employees.
In addition, Gorillas and Getir both announced layoffs in May, with Getir laying off 14 percent of its global workforce and Gorillas parting ways with 300 employees.
Despite Getir’s acquisition of Gorillas, the overlap between the two companies may result in additional layoffs in cities where both delivery brands live.
However, the instant grocery company remains optimistic about future growth.
“Markets go up and down, but consumers love our service and convenience is here to stay,” said Nazim Salur, co-founder of Getir in a statement. “The super-fast grocery delivery industry will steadily grow for many years to come and Getir will lead this category it created seven years ago.”
Getir, which was last valued at $11.8 billion, has operations in nine countries including Turkey, the U.S., U.K., Germany and France.
