The Berlin start-up is negotiating a sale with Getir.
(Photo: IMAGO/ANP)
Berlin, Frankfurt, Dusseldorf The consolidation in express delivery services expected by many experts is taking shape. The pioneer of the industry in Europe, the Turkish Getir, is in “advanced negotiations” about a takeover of the Berlin competitor Gorillas, the Handelsblatt learned on Monday from several people familiar with the matter.
Gorilla owners would be paid partly in Getir shares and partly in cash. A final decision is expected in the fall. According to insiders, the purchase would mean a significant devaluation for gorillas. The Bloomberg news agency first reported on the talks.
After the delivery boom in the corona crisis, in which providers such as Gorillas, Getir and Flink grew rapidly and gained many customers, the providers are now being hit by the increased food prices and the economic crisis. Added to this are the high logistics and personnel costs, which can hardly be changed.
Like Getir, Gorillas reacted to the new realities this year with layoffs. In addition, the German company withdrew from several European markets. The aim was to be in the black as quickly as possible. Investors had also asked for it. Like the competition, Gorillas does not provide any insight into its current business figures.
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Getir – known for the purple and yellow backpacks worn by drivers – has been on the market much longer than its German competitors Gorillas and Flink and was founded in 2015. At the same time, the Istanbul company has plenty of financial resources.
Getir raised $768 million in a financing round in March and has since been valued at just under $12 billion. The round was led by the financially strong sovereign wealth fund Mubadala from Abu Dhabi, which also has a stake in Flink.
Gorillas, Flink and Getir fight for the German market
Getir entered the German market later than the competition. A takeover of Gorillas would significantly expand the mainstay here in Germany as well as in Europe and would give the company more clout in the competition with Flink. So far, all three providers in Germany have been fighting a costly battle for customers who are willing to pay a surcharge in the form of fees for fast delivery by bicycle courier.
According to insiders, Flink is also said to have kept an eye on gorillas in the past, but recently there have been no more talks about a possible merger, as people familiar with the matter said. Neither Gorillas nor Getir nor Flink wanted to comment on negotiations for a Gorillas purchase.
The Turkish company raised $768 million in a financing round in March and has since been valued at just under $12 billion.
(Photo: IMAGO/Michael Gstettenbauer)
Gorillas was only founded in 2020 by Kagan Sümer and was valued at three billion dollars in the last financing round around a year ago, similar to Flink. However, the company, which relies on black backpacks to transport groceries, is making high losses.
The market has therefore repeatedly speculated as to when the company will have to raise new money. Talks about a fresh capital injection have been going on for months. Whether Sümer will keep his post in the event of a purchase by the Turkish competitor is questionable in the industry.
According to insiders, a valuation of significantly less than one billion euros was under discussion during the takeover negotiations. This would level off with the expectations of some donors. A Gorillas investor had already made a 60 percent write-down internally after the second quarter. This emerges from reports to investors in the fund that are available in the Handelsblatt. The fund could not be reached for comment as of press time.
Consolidation should pick up speed
So far it is unclear how the restaurant fast delivery service Delivery Hero stands on the purchase negotiations. He only joined Gorillas last year with 200 million euros. In addition to restaurant food, Delivery Hero also delivers groceries and drugstore items in many countries.
In his “Quick Commerce Report” in August last year, Matthias Schu from the Lucerne University of Applied Sciences and Arts had already forecast a consolidation among the fast delivery services in the next twelve to 24 months. “Consolidation is no longer a question of whether, but only of how,” explains the e-commerce expert.
Consolidation is now no longer a question of whether, but only of how. Matthias Schu, e-commerce expert
The first takeovers have already taken place. At the end of 2021, Getir announced the purchase of the British start-up Weezy; Gorillas acquired French company Frichti earlier this year.
“Especially in the case of concepts that, from the consumer’s point of view, do not differ from one another apart from the name, the battle for customers and for market shares will intensify considerably,” Schu is certain. “And those with the bigger war chest and consequently the longer staying power will win this competition,” he says.
For him, the fact that competitors such as Gorillas and Flink are outdoing each other with discount coupons is a clear signal that consolidation is imminent. “Some of the players will exit the market again due to the tight profitability, or some start-ups will also look for an advantageous exit and sell to a larger competitor,” says the e-food expert.
More: Gorillas’ search for new financiers falters – sale as a way out?