Just two years after the launch of instant grocery delivery app Gorillas, it has been bought by its rival Getir for $1.2 billion.
👉 Background: Getir is a Turkish founded instant grocery delivery app that launched back in 2015 as the OG in this space. Getir actually means bring/get in Turkish because they promised to bring deliveries to your door in under 10 minutes.
👉 What happened: While Getir started in Turkey, they’ve now made their way to the UK, Germany, Netherlands and France. This put them head to head with another instant grocery delivery app - Gorillas.
👉 What else: But now, just two years after Gorillas launch, it has been bought by Getir for $1.2 billion. While this sounds good, it is a far cry from Gorillas' $3 billion USD valuation at the height of the instant grocery bubble. That’s what can happen when a market gets saturated in a short period of time.
💡 Market saturation occurs when the demand for a product or service reaches its limit. As a new concept captures attention of consumers and investors, it becomes a race to become the first mover in the space.
💡 As the competition for market share increases, companies start aggressive marketing campaigns and price wars (think: 30% of your first 10 orders).
💡 These companies find themselves unable to compete in a crowded market, especially in an investment downturn. We’ve seen this in Europe with instant grocery apps like Getir, Gorillas, Flink, Zapp and Weezy. And even in Australia with Voly, Send and Quicko all folding.
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