TLDR:
Key Points:
- Getir is exiting British and German markets, signaling the burst of the instant delivery bubble.
- Venture capital houses face tough questions for backing a struggling industry.
In a recent announcement, instant delivery company Getir revealed its exit from several markets, including the UK and Germany, marking the collapse of the fast delivery bubble. This development raises serious concerns for the venture capital firms that heavily invested in the industry.
Despite being valued at an impressive $12bn at its peak, Getir struggled to sustain operations in various countries and decided to refocus on its home market in Turkey. As other competitors in the instant delivery sector face similar challenges, it becomes evident that the economics of the industry were always fragile.
The industry’s reliance on small orders, high marketing costs, and a vulnerable workforce has made it difficult for companies to turn a profit. This, combined with the unpredictability of consumer demand, has resulted in a series of closures and downsizing within the sector.
The collapse of the instant delivery bubble sheds light on broader issues within the venture capital industry. The pattern of investing in industries with shaky business models, such as blockchain, fintech, and new media startups, highlights the need for a more cautious approach to funding early-stage companies.
As the government and other entities continue to allocate resources to VC firms, the repeated failures in industries like instant delivery underscore the importance of mitigating risks and avoiding the pitfalls of unsustainable business models.
