Getir is a “quick commerce” startup that delivers groceries and other necessities to customers in as little as 10 minutes. Getir was founded in 2015 and has expanded to an astounding size since then.
It is now the market leader in Turkey’s grocery delivery business. Getir, on the other hand, provides more than simply grocery delivery and has lately expanded its array of services to include meal delivery and same-day delivery of household supplies.
Getir makes money by selling groceries online at marked-up prices, having higher operating margins, through delivery and payment processing fees. In this article, we will discuss Getir business model and how does it make money in detail.
Getir: The origin
Getir was launched by Serkan Borancili, Tuncay Tutek, Dogancan Dalyan, and Nazim Salur. Salur and Borancili met using the Turkish ride-hailing service BiTaksi, which allowed users to hail a cab anywhere in the city in under three minutes. The co-founders sought to test if a comparable level of efficiency is possible in the food delivery industry.
Getir was started in 2014, at a period when Turkish shoppers were still unfamiliar with purchasing food online. Because online grocery delivery often takes up to a week, the co-founders chose to deliver in 10 minutes.
Tutek further emphasized the importance of this choice, saying, “Delivering within 10 minutes is crucial for clients because 10 minutes signifies right now.” If we can provide within 10 minutes, we can maintain our competitive edge even when more players enter the picture.
The crew began operations in a rented office and warehouse space in a disused flower building. Business operations were tough over the first few years.
Turkish shoppers avoided using credit cards in addition to preferring to buy food from brick-and-mortar establishments. To overcome this opposition, Getir spent considerably on marketing efforts and recruited a group of early adopters to test rapid delivery for themselves.
There were additional difficulties in obtaining investment money because Turkey was not renowned as a breeding place for successful start-ups. As the COVID-19 virus spread over the world, Getir ultimately acquired a $38 million round of Series A investment in January 2020.
As millions of people were compelled to go into lockdown, income rose by more than 500 percent for the rest of 2020. Getir was valued at roughly $7.5 billion after another successful round of funding (Series D) in June 2021.
Now, let us take a closer look at how Getir makes money.
Getir: Revenue generation model
Getir makes money through a revenue generation technique that is popular among food delivery companies. Let’s take a closer look at this method below.
Getir business model runs on a network of dark stores where a crew of specialist pickers fulfils consumer requests. Most things for sale are priced up by about 10% compared to comparable products found in typical supermarkets. This is where the majority of the company’s profits are made.
However, such costs are still much lower than those of a typical convenience store, such as 7-Eleven.
Because Getir do not own the warehouses where the supermarkets are stored, the margins are also raised. This allows the firm to avoid the regular costs of an owner/operator.
While offline stores typically have operating margins of 2 to 3 percent, Getir may be able to get a larger chunk of the pie.
For instance, it does not have to pay high rent. Rather, it collaborates with franchisees who own and run warehouses at their own expense. Furthermore, warehouses do not require the same amount of area as a regular supermarket.
Furthermore, Getir business model does not need to pay pricey store clerks who must assist clients. Instead, it may put money into riders (the warehouse workers are often hired by the owners themselves).
Another significant benefit over its offline competitors is that Getir is aware of a customer’s purchase history and their preferences. As a result, it may personalize the user experience and product suggestions to what it believes a buyer wants to buy.
Getir business model also earns money through delivery fees, which are added to every order. The shipping price for the United Kingdom is £1.99.
Furthermore, Getir charges a fee if an order is less than £10. This guarantees that the firm continues to make a profit on smaller purchases.
Payment processing fees are also levied to pay the interchange fees levied by credit card companies (most notably Mastercard and Visa).
Now that Getir business model, revenue streams, and its journey so far have been discussed in length, you might be wondering how you can start your own rapid grocery delivery business and reach your customers’ doorsteps within minutes. We have, Jungleworks suite for you to enhance your deliveries, provide seamless ordering to your customers and gain unparalleled visibility with the right growth tools.
Book a demo with our business experts today and get started with your own 15-minute grocery delivery business.
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