(Nov 6): Uber Technologies Inc is in talks on a potential deal with Getir that would help the US company further expand its delivery operations in Türkiye, according to people with knowledge of the matter.
Uber has been holding preliminary discussions with Getir’s main investor, Mubadala Investment Co, about an acquisition of key parts of the Turkish company, the people said. A deal would likely be focused on Getir’s delivery business and could be valued at as much as US$1 billion, depending on which assets are ultimately included in a transaction, some of the people said.
A full or partial acquisition could cement Uber’s position in an industry that was once populated with numerous challengers. Getir was one of the most promising rapid-delivery providers, expanding out of Türkiye and valued at US$11.8 billion at its peak. But it significantly scaled back operations after the Covid-19 pandemic, and restructured last year.
The scope and structure of a potential deal are still under discussion and there’s no certainty the negotiations will lead to a transaction, said the people, who asked not to be identified because the information is private. The Getir delivery business could also draw interest from other suitors, according to the people.
Mubadala is considering selling Getir’s finance business separately, according to some of the people. Representatives for Uber, Mubadala and Getir declined to comment.
Getir was founded in Istanbul in 2015, and was one of several startups that promised grocery deliveries in 10 minutes or less. Customers could order convenience store goods via an app, which would be delivered by a courier. Getir and its competitors relied on local, urban warehouses or “dark stores” to fulfil orders at speed.
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The company raised substantial funding through the pandemic, from backers such as Sequoia Capital and Tiger Global, to expand internationally and compete with rivals offering aggressive discounts. It hit its peak valuation in 2022.
But expansion was costly and as economies reopened and investors sought to rein in costs, Getir withdrew from the US, Germany, the Netherlands and the UK last year. The company restructured and Mubadala took a controlling stake, amid a falling out with the company’s founders.
Uber is working to build out its delivery operations to complement its core rideshare business. The company reported better-than-expected gross bookings growth in its third-quarter report on Tuesday, driven by a 25% jump in its delivery segment.
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In May, the US company agreed to buy 85% of Getir’s Turkish competitor Trendyol Go with a US$700 million stake. Chief executive officer Dara Khosrowshahi visited Türkiye last week to open a technology hub, with Uber pledging to invest US$200 million over the next five years in its operations in the country.
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