Dhe Turkish express delivery service Getir is planning a rapid expansion of business in the German market two months after its start in Berlin. He assumes that he will be able to outstrip the competition, said the founder and CEO Nazim Salur in an interview with WELT.
“We are the clear market leader in Great Britain and Turkey. In Germany we have competitors who entered the market earlier than we did, but we are not too late, “says Salur:” Here, too, we are definitely striving for market leadership. “German consumers would benefit from the fierce competition that is now imminent.
So far, the company, which is hardly known in Germany, has had an impressive growth career. Salur, 59, founded it in 2015 together with a handful of friends in Istanbul. In the current year, Getir (in German: “Bring”) raised almost one billion dollars from investors in three financing rounds to finance international growth.
The donors estimated the company value at around 7.5 billion dollars (6.8 billion euros), about as much as Commerzbank, for example. This makes the messenger service the most valuable start-up in Turkey, where it now employs 25,000 people by its own account.
Start in six cities this year
Salur’s company entered the German market in June with the start of food deliveries in Berlin. His purple and yellow electric mopeds have also been driving in London, Paris and Amsterdam for a few months. The further development of business in Germany will trigger a high demand for workers, said Salur.
The number of employees should increase from a good 300 to around 1,000 by the end of 2021. “For the next two years I am assuming 10,000 jobs in Germany,” he announced.
Six more cities are to be served this year, initially Hamburg, where the start is planned for October. Then the Rhine / Ruhr area with entry in Cologne, Düsseldorf, Dortmund and Essen is on the list. In southern Germany, Stuttgart, Nuremberg or Munich would be considered. There you look for locations for distribution centers.
Despite the speed, you need sufficient market penetration in the respective regions right from the start: “We want to reach at least half of the population in the cities in which we are competing from the start,” said Salur. The development of a market is overall “a marathon, not a sprint”.
Gorillas, Flink and Delivery Hero are already there
In recent months, massive competition between turbo delivery services such as Gorillas, Uber Eats and Flink has broken out in major German cities. The Dax group Delivery Hero recently entered the German ten-minute delivery market with its Foodpanda brand and has ambitious growth plans.
Salur expects that the field of participants will soon clear again: “As always when a new market is opened up, there are initially numerous competitors. Some will be successful, others will not, ”he said calmly and was certain that his company would be on the winning side. He sees Getir, which was founded six years ago, as a pioneer and source of ideas in the industry.
According to Erik Maier, trade professor at the Leipzig Graduate School of Management, the new branch of e-commerce is primarily a competition for stationary specialists in fast, small-scale consumption, such as train station shops, petrol station shops, kiosks, drinking halls or Spätis. The market volume is considerable. The retail research company Planet Retail put the turnover of these so-called convenience stores for 2020 at around 320 billion euros worldwide.
Growth takes precedence over profit
In view of this high volume, investors sense considerable profit opportunities in the medium term and are investing billions in the business. For the time being, the large amount of money will primarily be used by each of the competitors to achieve the best possible starting position in the new billion-dollar market.
Growth has priority over profit for the foreseeable future, losses are programmed for now. However, the classic grocery trade also takes the newcomers seriously, as demonstrated by Rewe’s entry into Flink in June.
“In the medium term, of course, the business has to be profitable, otherwise it would not be sustainable,” said Salur. As the largest economy in Europe, Germany is an important market: “Anyone who is not successful here has not done their job properly.” The economic environment is also a good fit for the company’s business.
“Germany has a lot of middle-income consumers,” says the entrepreneur: “There are hardly any really poor people, as the social system guarantees an income even in difficult situations.” works: “Compared to Turkey, the wages in Germany are high. But so are the customer orders. “
Getir relies on a “hybrid working time model”
However, a number of express delivery services have come under fire because of the couriers’ working conditions. In the summer, for example, there were protests by drivers among gorillas, which attracted attention even in federal politics.
Salur promises the couriers conditions that are fair from its point of view. With a starting hourly wage of EUR 10.50, they would have the choice between permanent full-time positions and temporary or part-time jobs: “We believe in a hybrid working time model.” In addition, rest rooms and toilets would be made available at the distribution points.
The physical strain is kept within limits by using e-mopeds. In addition, no messenger is urged to be in an excessive hurry: “Our couriers don’t have to be fast because our technology enables speed.” That is why the advertising slogan “Groceries in minutes” does not mention a specific figure, although ten minutes or less would normally be reached.
“Being a little lazy is human”
Only in the first phase of business development do you focus on 18- to 35-year-olds as typical customers. “In the medium term it is all,” says the company founder: “My 83-year-old mother-in-law often uses Getir, even small children can use the system.”
Salur has clearly identified one thing as the main motive behind the customers’ orders from a turbo supplier: convenience. He denied speculation that the company would prefer to enter cities with a large Turkish community: “The need for comfort is universal, regardless of whether you are Turkish, German or French. To be a little lazy is human. “
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