A power struggle at grocery delivery giant Getir intensifies as the company shuts down foreign operations while shareholders clash over key management positions. This ongoing conflict highlights the complex dynamics that can arise in corporate governance and business disputes, particularly with substantial investments and strategic pivots.
The recent dispute between Getir’s Turkish founders and its foreign investors escalated following the termination of a senior strategy executive. This move, driven by differences in strategy, has heightened divisions within the company’s leadership.
Getir ousted its Chief Strategy Officer, who had been advocating for downsizing operations. The CSO’s strategy was backed by Getir’s foreign investors, who held a 30% stake, compared to the 25% owned by the CEO and other Turkish investors. Consequently, there exists a delicate balance between the local founders and foreign investors in steering the company's course.
Rising Operational Expenses
The once-heralded rapid delivery sector and its flagship company face a brutal reality check. While Getir's promise of delivering groceries within 10 minutes thrived in Turkey, where labor and operational costs are relatively low, it encountered challenges overseas despite securing substantial venture capital funds for expansion.
As pandemic-induced lockdowns disappeared and expenses soared, Getir's valuation plummeted from $11.8 billion two years ago to $2.5 billion this past September. Rising post-COVID costs and slowed demand have caused a business dispute to arise between investors. Some investors urged top management to scale down international operations and curb expenditures, while others pushed for continued expansion.
Legal Expertise for Corporate Challenges
Experienced legal counsel is an indispensable resource in navigating the intricate terrain of corporate disputes among investors. Intelligent minds can differ. If the shareholder difference becomes a dispute, you need legal counsel to help navigate the difficult road ahead to ensure you're not subject to shareholder oppression or to prevent other investors from running the company into the ground. At King & Jones, we specialize in providing tailored legal strategies to address internal conflicts and how to succeed in shareholder litigation. Contact King & Jones today for expert legal assistance in confidently navigating corporate governance complexities