Speedy grocery delivery app Getir has announced the acquisition of rival Gorillas, after months of takeover talks.
The deal was testament to Getir’s market-leading position in the sector, Nazim Salur, who founded the firm in 2015 said.
“Markets go up and down, but consumers love our service and convenience is here to stay,” Salur said.
The sector would “steadily grow for many years to come,” he added on Friday, less than a year after Getir was valued at $11.8bn (£8.97bn).
No financial details were provided by Istanbul-based Getir yet the deal values Gorillas at around $1.2bn, according to people with knowledge of the matter who were cited by the Financial Times.
It marks the latest instalment of what has been a flurry of acquisitions across the sector, following a boom for delivery businesses amid the Covid lockdowns a couple of years ago.
Consolidation of the fledgling sector has already seen Getir takeover of UK startup Weezy, Gorillas acquire the French Frichti, and GoPuff purchase European-focused firms Dija and Fancy.
In recent months, the sector has experienced a more turbulent time with firms slashing headcounts in order to focus on turning a profit.
Getir slashed staff numbers by 14 per cent in May while Gorillas axed around 320 roles at its Berlin headquarters.
Elsewhere in the sector, GoPuff and Zapp were also forced to reduce headcount by 10 per cent.
Gorillas also withdrew from a number of key markets this year, including Italy, Spain, Denmark and Belgium.
It had previously said it was hoping to double down on hitting profitability in its core markets – Germany, France, UK, Netherlands and the US – where more than 90 per cent of Gorillas’ revenue arises from
The “majority, if not all” of GoPuff direct competitors would “not be in existence in the next six-12 months, Dan Folkman, the firm’s senior vice president, told CityA.M. earlier this year.
Businesses have been hit by spiralling labour and fuel costs, as inflation in the UK now stands at a 41-year high.