New Yorkers have begun to spot messengers dressed in purple and yellow zooming about the city on mopeds in recent weeks.
These couriers, who may also be spotted in Chicago and Boston, convey food for the Getir app, which offers same-day delivery.
Getir, based in Istanbul, Turkey, was founded six years ago with the goal of delivering everyday supplies from its grocery stores to people’s front doors in under ten minutes.
It has spread across Europe this year, where it competes with Gorillas and Zapp. It will focus much more on the United States next year, where it will face a whole new level of competition.
“One U.S. is equal to all [of] Europe,” Getir CEO and co-founder Nazim Salur told CNBC in an interview, adding that he thinks it’s the best place in the world for start-ups to operate.
“A good basketball player in the end wants to play in the NBA and the NBA is in the U.S.,” Salur said. “We played basketball in Turkey and then the EuroLeague. And now it’s time to show our skills and try to make it in the NBA.”
In 2022, Getir wants to expand into “many more” U.S. cities, according to Salur. The entrepreneur refused to disclose a particular figure, but stated that it will “certainly be” more than ten.
“To give you an idea, we opened London 10 months ago, and today we’re in 16 cities in the U.K.,” he said, adding that the U.K. market is five times smaller than the U.S.
Getir, which employs over 30,000 people worldwide, will face fierce competition in the United States from far larger corporations.
DoorDash, a food delivery company with a valuation five times that of Getir, has established its own fast-delivery service, and Uber is also experimenting. Amazon, the world’s largest e-commerce firm, may also enter the market.
“There are other companies who are coming into our area,” Salur said. “Some existing bigger players, such as DoorDash.”
A young crop of fast-delivery startups is also vying for a piece of the pie.
Several New York-based rapid-delivery firms, such as Jokr and Buyk, have lately emerged, but Salur maintains they aren’t a danger to Getir.
“They are very new and we’re much more experienced,” he said. “The competition there is not going to bother us.”
Getir has raised more than $1 billion for its planned expansion, with financiers valuing the company at over $7.7 billion most recently.
Salur said the company expects to raise more funding in 2022, and that he raises money in a different method than some of his competitors.
“Others raise in panic most of the time and the investors make the rules,” Salur said. “When we raise it is mostly on our terms.”
Salur said Getir will not take on more capital than it requires, as he does not want to dilute his ownership in the company any more than is needed.
While huge names like New York hedge fund Tiger Global and Silicon Valley venture company Sequoia have supported Getir, not everyone is ready to spend on fast-delivery startups.
Christian Angermayer, who invests in companies with Palantir co-founder Peter Thiel on a regular basis, isn’t a fan of fast-delivery enterprises.
“It’s very challenging to get the unit economics to work in this sector, and just a few will survive,” he said. “I regard the current valuation of those companies extremely exaggerated and hyped.”
(Adapted from CNBC.com)