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According to a survey by MasterCard, the global gig economy generated over $204 billion in gross volume in 2019, with 58% of those activities being transport-related services, and is predicted to reach over $455 billion by the end of 2023 (Mastercard, 2019). The change in societal approach and digitalization in recent years, mostly caused by the pandemic, made the grocery delivery sector flood with additional funding since many investors bet on the continuity of lockdown shopping habits. High demand for fast, convenient, and affordable shopping has resulted in over $5 billion in additional funding since 2020 (Wired, 2023).
Naturally, someone had to take advantage of this founding, and that is how Getir almost monopolized the European market. In recent years, this Turkish delivery company has been creating a stir in the region, mostly because of its human-centric business model and remarkable expansion. Even though the company was founded in 2015, it has quickly become one of the leading players in the rapidly growing delivery industry. This is clearly shown in over 28 million downloads, solely on Android, worldwide in contrast to only 5.4 downloads of GoPuff their closest competition.
Getir’s competitive advantage lies in its unique business model based on centralized distribution. The company uses a network of couriers to deliver goods from local distribution centers directly to customers in as little as 10 minutes, providing quick and efficient solutions for users, especially in metropolitan areas. This is contrary to their previous competition, which usually utilized third-party shops to obtain the products. Consequently, this caused a significant variety in delivery time due to possible register lines, different shop outlines, and a lack of substitutes. While Getir has full control over storage units, therefore, being able to unify packing procedures and ensure a shorter delivery time. The storage units also enable the company to uphold a sustainable approach to business. This can be seen from their Hunger Action Day in 2022, when by diverting the 84,404 pounds of perfectly edible donated food from landfills, Getir donated 70,336 meals, reduced 377,284 pounds of CO2, and saved 8,355,957 gallons of water (Getir, 2023).
Furthermore, Getir’s human-centric approach and concern for their employees, particularly drivers, has contributed to the company’s rapid rise to the top. They offer a pay rate of $13 per hour, as well as holiday and sick leave. Moreover, to maintain a sustainable approach, the company supplies employees with electric scooters to ride during their shifts and covers their insurance.
However, nothing is perfect. The overall fast delivery sector is surrounded by many questions, regarding its influence and future: Is it necessarily good that we demand almost everything to be quick, easy, and cheap, including our groceries? How does this influence our foresight ability and, thus, our ability to maintain resilience? How does the increased number of couriers rushing to maintain a 10-minute delivery affect traffic safety? How can I, as an easily replaceable employee, find my own unique talent?
These are just a few of the potential issues with the gig economy’s fast services. Nevertheless, Getir is well-positioned to take advantage of this trend and further solidify itself as a major player in the field as the delivery industry continues to expand.
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Bibliography:
Wired. (2023). The delivery wars heat up as Europe’s Getir joins the fray. Wired.co.uk. Retrieved from https://www.wired.co.uk/article/getir-europe-delivery-wars?itm_campaign=BottomRelatedStories&itm_content=footer-recirc
Mastercard. (2019). Gig Economy White Paper. Mastercard Newsroom. Retrieved from https://newsroom.mastercard.com/wp-content/uploads/2019/05/Gig-Economy-White-Paper-May-2019.pdf
Getir. (2023). Getir and Copia reach milestone addressing food insecurity. Getir.com. Retrieved from https://getir.com/us/press-releases/getir-and-copia-reach-milestone-
Sifted. (2020, October 26). On-demand grocery delivery markets. Retrieved from https://sifted.eu/articles/on-demand-grocery-delivery-markets/