Local Authorities’ Sustainable Cities Goal Clash With Grocery Delivery Rides
ISTANBUL, TURKEY - OCTOBER 22: Delivery riders from Getir are getting ready to deliver orders outside a storehouse on October 22, 2021, in Istanbul, Turkey. Getir, a fast delivery service based in Turkey, is making preparations to expand into the United States in November. This will be the eighth country that the company has entered within a year. Following successful launches in the United Kingdom, Spain, Portugal, France, Italy, Germany, and the Netherlands, the six-year-old company is interested in venturing into international markets as the demand for home deliveries continues to rise. Beginning in Istanbul in 2015, the company now operates in over 60 cities worldwide and has secured additional investments amounting to over 1.5 billion dollars in 2021. (Photo by Chris McGrath/Getty Images)
Grocery delivery services Getir in France will come to an end due to a recent legislation that imposes stricter regulations on dark stores starting July 1st.
Istanbul-headquartered delivery platform Getir has chosen to cease its activities in France starting from July 19th, after two years of serving the nation.
The French retreat will result in the termination of employment for approximately 1,600 individuals, encompassing riders, personnel working in dark stores, as well as other staff members.
The company mentioned that one of the reasons for their challenges was a "hostile atmosphere" caused by rising prices and stricter regulations on stores that operate in the shadows. These dark stores are now being seen as a potential solution by local officials in order to maintain the vitality of city communities.
Problems With Grocery Delivery
During the pandemic, grocers found it essential to have dark stores, which are small warehouse facilities used to store products and quickly deliver them to customers. These stores have become crucial for enhancing efficiency, customer service, and maintaining social distancing measures.
In March, the French authorities determined that dark stores were storage facilities, rather than commercial enterprises, resulting in the transfer of regulatory authority over this sector to municipalities starting in July. This decision has dealt a significant blow to the industry. If a local urban plan (PLU) chooses to prohibit such operations at a specific location, these premises may be legally obliged to cease their activities.
At the conclusion of March, the Turkish company had already amassed a debt of €222.5 million, while the German grocery service rival Flink declared insolvency in France, primarily as a result of these fresh regulatory guidelines.
Successful Cities And Local Businesses
After the pandemic, the impacts of grocery delivery services became more apparent on local communities, revealing the intricate consequences of this business model. Advocates of such services claim that they meet the demands of today's consumers and promote sustainable economic growth, but there are additional factors to consider.
In the wake of the COVID-19 pandemic, people are increasingly inclined to indulge in retail therapy, but they are also growing frustrated by the presence of loud streets occupied by bustling scooters, often surrounded by litter. Authorities in different regions have voiced concerns regarding problems like traffic jams, workers' rights, and the negative effects on small, community-based enterprises. These factors have made it challenging to achieve the goals of building environmentally friendly cities.
Like France, Spanish mayors are choosing to support local businesses in order to enhance the prosperity of their neighborhoods. Recently, Getir declared its decision to exit the Spanish market, where it had previously operated in major cities such as Madrid, Barcelona, Valencia, Zaragoza, Seville, and Malaga. Similar to France, Spanish mayors have indeed made the decision to protect local businesses and prohibit this practice, a move that has already been implemented in certain areas of The Netherlands in 2022.
