Gorillas Acquisition: Key Details, Impact, and What Comes Next

In a significant move within the quick-commerce industry, Turkish delivery company Getir has acquired its German rival Gorillas for $1.2 billion. This acquisition merges two key players in the fast grocery delivery sector, positioning Getir to lead the market with a combined valuation of $10 billion. The deal underscores the ongoing consolidation in an industry facing financial and regulatory challenges.

What Is Gorillas?

Founded in 2020, Gorillas is a rapid delivery service specializing in a wide range of products, including groceries, personal care items, and household essentials. The company differentiates itself with its promise of delivering orders within minutes, offering unparalleled speed and convenience. Gorillas' extensive product categories and user-friendly mobile app further enhance its market position, making it a go-to choice for quick and efficient delivery services.

Who Acquired Gorillas?

Getir operates in the rapid delivery service industry, focusing on delivering a wide range of products to customers' doors in minutes. The company offers key services such as rapid delivery, a user-friendly mobile app, and promotions for every order. With thousands of product varieties, Getir positions itself as a leader in the market, emphasizing speed, convenience, and a broad selection of products. This approach provides a significant competitive advantage in the delivery service industry.

When Was Gorillas Acquired?

Getir acquired Gorillas on December 9, 2022. This acquisition occurred during a period of significant consolidation in the quick-commerce industry, driven by financial challenges and regulatory pressures. The sector, which saw rapid growth during the COVID-19 pandemic, has been struggling with high operational costs and reduced venture capital funding. This deal, valued at $1.2 billion, reflects the ongoing trend of companies merging to survive in a competitive and evolving market landscape.

Why Was Gorillas Acquired?

• Market Expansion: The acquisition of Gorillas allows Getir to significantly expand its market presence in Europe and the U.S. By integrating Gorillas' customer base and operational infrastructure, Getir can consolidate its position in key markets such as Germany, the U.K., and France. This strategic move helps Getir eliminate a competitor and gain access to new customers, enhancing its market share.
• Technology Integration: Although not explicitly mentioned, the acquisition likely involves integrating Gorillas' technological platforms and logistics systems with Getir's. Both companies operate networks of dark stores and use mobile apps for instant grocery delivery. Combining these technologies can streamline operations, improve delivery efficiency, and reduce costs, ultimately enhancing the customer experience.
• Competitive Advantage: By acquiring Gorillas, Getir strengthens its competitive position in the quick-commerce sector. The deal reduces the number of competitors and allows Getir to leverage Gorillas' 180 dark stores across 44 European cities. This consolidation helps Getir maintain quick delivery times and better compete with other major players like Flink and GoPuff. Additionally, the combined valuation of $10 billion positions Getir as a leading player in the industry.

Acquisition Terms

• Acquisition Price: $1.2 billion
• Payment Method: Combination of cash and equity
• Key Conditions or Agreements:
  • Gorillas investors will obtain 12% of Getir’s capitalization table.
  • Job cuts are expected due to the overlap in the companies' network of small urban warehouses.
  • Getir will acquire Gorillas' 180 dark stores across 44 European cities.
  • Gorillas has secured permits for new locations in the Netherlands, which can be transferred to Getir.
  • The acquisition is part of a broader trend of consolidation in the quick commerce sector.

Impact on Gorillas

The acquisition of Gorillas by Getir has led to significant changes in operations and management. Job cuts are expected due to the overlap in the companies' network of small urban warehouses, with both companies having already conducted layoffs earlier in the year. This consolidation aims to streamline operations, reduce costs, and improve financial health. Additionally, the integration of Gorillas' 180 dark stores across 44 European cities will likely result in the closure of overlapping hubs, impacting rental contracts and employment laws in various regions.

In terms of product offerings and services, the merger is expected to enhance Getir's competitive position in the quick-commerce sector. The combined entity will continue to offer super-fast grocery delivery services, potentially expanding service areas and improving delivery times. However, the focus on cost-cutting measures may lead to changes in service offerings. Employee reactions have been mixed, with concerns over job security due to the layoffs. Customer reactions have not been explicitly detailed, but the convenience of ultrafast delivery services remains popular. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly.