🏙️ Getir’s Rocky NYC Expansion
Getir, a Turkish grocery delivery app, entered New York City in December 2021, aiming to revolutionize quick commerce. The app quickly expanded, renting locations across the city to stockpile groceries for its e-bike delivery service. However, its aggressive expansion has now turned into a financial disaster. With lawsuits filed in Manhattan's Supreme Court, Getir faces claims of nearly $4M in unpaid rent. The company owes money at nine locations, some dating back to 2022. These legal troubles follow Getir's $12B peak valuation, which has since plummeted.
💼 Lawsuits and Legal Woes
Landlords across New York City are pursuing legal action against Getir. One lawsuit claims Getir owes over $360K in back rent, taxes, and utilities for a location on West 26th Street. Another lawsuit filed by a landlord on East 74th Street alleges $100K in unpaid rent. The most significant claim comes from a Manhattan landlord who says Getir owes nearly $1M for a West 35th Street property. The lawsuits reveal a pattern of financial instability, with the company abandoning several storefronts with years left on their leases.
💸 The FreshDirect Connection
Getir’s financial troubles began to surface shortly after its acquisition of FreshDirect in November 2023. FreshDirect, a well-known grocery delivery service, was purchased as part of Getir’s strategy to solidify its foothold in the U.S. market. However, instead of strengthening the company, the acquisition appears to have contributed to its cash flow problems. Reports surfaced that Getir was bleeding money almost immediately after the deal, which may have led to the company's inability to meet its rental obligations.
⚖️ Accelerated Lease Clauses
The staggering amounts Getir owes can be attributed to acceleration clauses in its leases. These clauses allow landlords to demand the full value of the lease if the tenant defaults. For example, in the case of the abandoned West 35th Street location, the landlord is claiming over $950K in future lease obligations, on top of $88K in unpaid rent. While Getir settled one case involving $1.5M in East Harlem, eight other lawsuits remain unresolved. The company’s silence on the matter only adds to the uncertainty surrounding its future in the U.S.
Will Getir manage to resolve its NYC legal troubles?
