Q-commerce consolidation to intensify after Getir-Gorillas deal
Consolidation within q-commerce and food delivery, and across q-commerce players, remains critical to cross-fertilise data, enter new markets, lower customer acquisition costs and homogenise marketing efforts, our Interview revealed. Consolidation will benefit both the food service and grocery delivery players, the former VP at Getir said. “One strong brand with two verticals in it, it is proven that it is much [more] profitable.”
There is currently a “fight for the geographies”, with Gopuff notably stronger than Getir in the US. However, Getir’s global expansion drive could lead to a Gopuff partnership in the future, according to the Interview, because Getir is only available in three cities and Gopuff is more widespread. The expert expects Getir in the short term to focus on integrating Gorillas but then look to the US as it continues its expansion. In Europe, Getir’s acquisition of Gorillas cements it as the market leader, with all major cities now covered by the two players, the specialist said.
Among the other insights gleaned during the Interview was that Getir’s vision is to become the Gojek of Turkey across service offerings while also expanding its grocery model globally. Getir is using Turkey as a new services testing ground and subsequently rolling out successful initiatives into markets where it leads in grocery delivery.
On the USD 1.2bn price tag, the specialist commented that although “it sounds expensive” the acquisition could propel the business value above its reported combined value of USD 10bn – potentially reaching USD 20bn. The integration of the Getir and Gorillas brands is the “interesting next step”, we heard. While much remains to be seen, the expert anticipates that eventually Getir will “completely dissolve the Gorillas brand”.
The primary risk for Getir, we were told, is ensuring that it can increase basket sizes across all markets. “If they solve it, then the business will have a very clear future,” the specialist said. “If they can’t solve it.. the business stays at the shallow end, it will always be a kind of complementary small business.”
Click here to access all the insights in Third Bridge Forum’s On-demand Grocery Delivery – Getir’s Acquisition of Gorillas Interview.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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