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Ahold Delhaize to sell FreshDirect to ultra-fast grocery delivery company Getir
The deal, expected to close by the end of the month, was a “difficult decision” but one that will enable Ahold Delhaize USA to focus on its omnichannel business, CEO JJ Fleeman said.
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FreshDirect operates from a 400,000-square-foot automated fulfillment center and campus in the New York City borough of the Bronx. / Photo courtesy of FreshDirect
Ahold Delhaize USA is selling its online grocery business FreshDirect to ultra-fast grocery delivery company Getir, the companies announced Wednesday.
Details of the transaction, expected to close by the end of the month, were not disclosed.
Ahold Delhaize, parent company of grocers including Food Lion, Giant Food and Hannaford, said the sale of FreshDirect would allow it to better focus its investments on its omnichannel business.
“This was a difficult decision, especially given FreshDirect’s rich history in the New York City area,” Ahold Delhaize USA CEO JJ Fleeman said in a statement. “However, our strength as a grocery retailer in the U.S. is the true omnichannel experience—a combination of online and in-store—where we have leading brands and market share, strong store density and online presence, and a deep heritage of customer loyalty and relationships. With this decision, we will increase our focus on omnichannel—our biggest growth opportunity.”
Ahold Delhaize, along with private-equity firm Centerbridge Partners, purchased longtime e-grocer FreshDirect in 2021 with the goal of boosting its e-commerce segment.
But FreshDirect’s service area has shrunk under Ahold Delhaize’s ownership. In August 2022, FreshDirect announced it was exiting Philadelphia and Washington, D.C., to focus on its New York metro market.
Bronx, New York-based FreshDirect, a pioneer in the online grocer space, began delivering in 2002.
Current FreshDirect customers will see no changes to their service as a result of the acquisition, the companies said.
“We are proud of the positive impact FreshDirect has had in the online grocery space, raising the bar in offering the best in-season selection of locally sourced goods,” Fleeman said. “In the coming weeks, we are committed to supporting a smooth transition for FreshDirect’s valued employees, customers, partners and communities, who have been loyal to the brand over the past 20 years, so that FreshDirect will be well positioned to continue as an integral part of New York’s food culture under Getir’s ownership.”
Getir said the acquisition will lead to “significant synergies” between the two grocery delivery companies.
“FreshDirect will leverage Getir’s technology and operational footprint to offer faster services to its loyal customer base, which will also benefit from easy access to Getir’s quick convenience service,” Getir said in a statement.
Acquiring FreshDirect will enable Getir to increase the quality and breadth of its assortment, especially in fresh products, “making it even more attractive to its New York customers,” the delivery company said.
Getir, which was founded in 2015 in Turkey, currently operates in five countries, promising grocery delivery in as little as 10 minutes. It debuted in the U.S. in 2021.
Late last year, Getir acquired Berlin-based ultra-fast delivery competitor Gorillas for a reported $1.2 billion.
In a September interview with Winsight Grocery Business, Fleeman called FreshDirect a “key focus inside New York for us right now.”
“That’s really the core market where we believe that brand serves, and we’re super proud of what the teams are doing there,” he said.
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