D-MARKET Electronic Services & Trading ADR (HEPS)

History and Background

D-MARKET Electronic Services & Trading ADR, operating as Getir, was founded in 2015 by Nazu0131m Salur. It rapidly expanded its on-demand grocery delivery services across Turkey and subsequently launched in several international markets, including the UK, Germany, France, Spain, the Netherlands, and the United States. The company aimed to revolutionize grocery shopping with its quick delivery model. However, Getir has faced significant challenges, leading to a restructuring and withdrawal from several markets.

Core Business Areas

• On-Demand Grocery Delivery: Getir's primary business was providing ultra-fast delivery of groceries and convenience items, typically within minutes. This involved a network of dark stores and a fleet of couriers.
• Food Delivery Services: The company also expanded into food delivery, partnering with restaurants to offer meals for quick delivery.
• Other Services: In some markets, Getir experimented with other on-demand services like parcel delivery (GetirBiT) and grocery retail (Getiru00c7aru015fu0131).

Leadership and Structure

Getir's leadership has seen changes due to its operational shifts. Nazu0131m Salur is the founder and has been a key figure. The company has a matrix organizational structure with regional and functional teams overseeing operations, technology, marketing, and finance.

Key Offerings

• Ultra-Fast Grocery Delivery: Getir's core offering, promising delivery of a curated selection of groceries and household essentials within an average of 10-30 minutes. Market share data is difficult to ascertain due to Getir's recent withdrawals and the fragmented nature of the on-demand grocery market. Key competitors include Instacart, DoorDash (in some segments), Gopuff, and local grocery chains with their own delivery services.
• Restaurant Food Delivery: A secondary offering, competing with established food delivery platforms. Competitors include DoorDash, Uber Eats, Grubhub, and local delivery services.

Industry Overview

The on-demand delivery industry, particularly for groceries, is highly competitive and capital-intensive. It is characterized by rapid growth fueled by changing consumer habits, but also by significant operational challenges, profitability concerns, and intense competition, leading to market consolidation and strategic adjustments.

Positioning

Getir positioned itself as a leader in the ultra-fast grocery delivery segment, emphasizing speed and convenience. Its competitive advantages included its proprietary technology and efficient logistics network. However, its rapid global expansion was followed by significant market exits, indicating challenges in achieving sustainable profitability and market share against entrenched players and economic headwinds.

Total Addressable Market (TAM)

The global on-demand delivery market, including groceries and food, is valued in hundreds of billions of dollars and is projected to continue growing. Getir's position relative to this TAM has diminished significantly due to its strategic retrenchments, particularly its withdrawal from major markets like the US and UK. Its current focus is primarily on its core Turkish market and select European countries.

Key Competitors

• Instacart (ISRT)
• DoorDash (DASH)
• Uber Technologies (UBER) - for food delivery
• Gopuff

Competitive Landscape

Getir's competitive advantages lay in its speed and convenience. However, it faces formidable competitors with larger scale, established logistics, and diversified revenue streams. The acquisition of Gorillas aims to strengthen its position in Europe but also brings integration challenges. The overall landscape is fiercely competitive, with price wars and operational efficiency being key differentiators.

Gorillas

• Year: 2023
• Acquisition Price (USD millions):
• Strategic Rationale: To consolidate market share in the rapid grocery delivery sector in Europe, reduce competition, and achieve economies of scale. This acquisition was part of Getir's strategy to focus and strengthen its position in key European markets after exiting others.

Historical Growth: Getir experienced explosive historical growth from its founding in 2015, rapidly expanding its service footprint across multiple countries and achieving substantial revenue figures. This growth was primarily driven by aggressive market penetration and investment.

Future Projections: Future growth projections for Getir are uncertain and heavily dependent on its ability to achieve profitability in its remaining markets and potentially re-enter or acquire other businesses. Analyst estimates are not readily available for its current privately held status and restructured operations.

Recent Initiatives: Recent initiatives have focused on restructuring, exiting unprofitable markets (including the US and UK), and consolidating operations in core regions. There have also been reports of strategic partnerships and a renewed focus on profitability. Getir recently acquired Gorillas, another rapid grocery delivery company, in a significant move to consolidate market share in Europe, albeit with ongoing integration challenges.

D-MARKET Electronic Services & Trading ADR (Getir) operates in the highly competitive on-demand delivery sector. While it has demonstrated strong historical growth and technological capabilities, it has struggled with profitability, leading to significant market retrenchments. Its recent acquisition of Gorillas aims to bolster its European presence, but future success hinges on achieving operational efficiency and sustainable profitability in a challenging market.

Data Sources:

• Company press releases and official statements.
• Industry news and financial publications (e.g., TechCrunch, Bloomberg, Reuters).
• Market research reports (general industry data).
• Information regarding Getir's operational status and acquisitions.

Disclaimers:

This analysis is based on publicly available information as of the last update and is subject to change. D-MARKET Electronic Services & Trading ADR is a privately held entity, and detailed financial data is not publicly disclosed, making a comprehensive financial analysis challenging. Market share data is estimated and may vary across different reports and geographies. The AI-based rating is a proprietary assessment and should not be considered investment advice.