Nov 8, 2023 - Economy

New York-based FreshDirect acquired by Turkish food delivery service

Illustration of a line of delivery robots with food items on their backs

Illustration: Sarah Grillo/Axios

Getir, a Turkish food delivery company, has acquired New York-based FreshDirect from Ahold Delhaize USA.

The big picture: FreshDirect was one of the first companies to leverage digital tech for grocery delivery, launching with lots of VC backing in 1999, but now is falling prey to industry consolidation.

  • It reports having 3,200 employees, and was acquired by Ahold in early 2021 for around $300 million.
  • No financial terms were disclosed for the Getir acquisition.

What to watch: Instacart on Wednesday afternoon will issue its first quarterly earnings since becoming a public company. Shares closed yesterday at $28.47, versus its $30 per share IPO price.

The bottom line: Getir is getting both larger and smaller at the same time. On the plus side, it's buying up rivals like FreshDirect and Germany's Gorillas. On the minus, it's laid off employees and the $11.8 billion valuation it received in early 2022 has been cut by more than 70%.

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