Turkish Grocery Delivery Startup Getir Faces Crucial Vote Amid Power Struggle
This weekend, the fate of Turkey’s quick grocery delivery startup Getir BV will be decided in Amsterdam, as its founders and main investor Mubadala Investment Co. engage in a high-stakes battle for control.
A New Transaction on the Table
Mubadala, an Abu Dhabi sovereign wealth fund, has announced a “new transaction” for Getir, which will be put to a vote at an extraordinary general meeting on Sunday. The fund claims that Getir’s founders have failed to fulfill their obligations under a June agreement to restructure the company.
Founders Push Back
Getir co-founder Nazim Salur is adamant that Mubadala must honor the original agreement, which he claims would reduce the founders’ stake in the company to zero. Salur has hinted at pursuing legal action, although he declined to elaborate on his plans.
A History of Conflict
The power struggle between Getir’s founders and investors, led by Mubadala, has been ongoing for some time. In June, Mubadala took a controlling stake in Getir after leading a $250 million funding round, prompting Salur to step down as CEO. The company’s valuation has plummeted from $11.8 billion in 2022 to $2.5 billion in 2023, amid concerns over its strategy and costs.
Getir’s Rise and Fall
Founded in 2015, Getir became a pandemic success story by offering ultra-fast grocery deliveries through bicycle and motorbike couriers. However, the company subsequently struggled with cash burn and withdrew from key markets, including the UK, Germany, the Netherlands, and the US. Today, Getir is refocusing on its home market, Turkey, where its financial performance is stronger.
What’s at Stake
Mubadala claims that its proposed transaction will secure Getir’s financial stability and protect the jobs of over 18,000 Turkish employees. However, the founders are determined to resist what they see as an attempt to marginalize them. The outcome of Sunday’s vote will have far-reaching consequences for Getir’s future direction and ownership structure.
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