In this episode, the host engages with Nazim Salah, founder and CEO of Getir, a rapid delivery service that has made a significant impact in the market by providing over 1500 everyday items to customers within minutes. With a strong presence in Turkey and a recent launch in London, Getir is eyeing further expansion in Europe and the U.S., backed by over a billion dollars in funding from notable investors like Sequoia, Silver Lake, and Tiger Global. Nazim, who previously founded a tech startup for taxi services, shares insights on Getir's business model, vertical integration, warehouse management, and the importance of controlling the supply chain to maintain their promise of 10-minute deliveries. The conversation also touches on the competitive landscape, consumer loyalty, and the future of grocery delivery services. Additionally, the episode features sponsors like Carter, Secureframe, and Cooley, highlighting their services that support startups and venture capital.
"And so with that, I'm thrilled to welcome Nazim Salur at Getir, one of the leading rapid delivery service providers that distributes over 1500 everyday items within minutes."
This quote introduces Getir and its service of rapid delivery, highlighting the company's success and growth potential.
"I was at the time the founder of btaxi... And right at that moment, I said, okay, we got this, right, what next? And I said, okay, taxis one need. People have many other needs, why don't we bring them everyday necessities?"
Nazim Salur explains the genesis of Getir, which stemmed from the desire to expand beyond taxi services to meet other everyday needs of people.
"The beauty of the 10 minutes lies in controlling everything... It's fast, but 10 minutes is almost now it's a different animal."
Nazim Salur emphasizes the importance of controlling the entire supply chain to maintain the 10-minute delivery promise, differentiating Getir from other models.
"So at the moment, we can't really make a mistake on location choice, because our technology tells us exactly where to put those warehouses."
This quote explains Getir's strategic approach to warehouse location, which relies on data and technology to ensure proximity to consumers and efficient delivery times.
"Of course, we have devised many algorithms on how to run them. I'd rather not into get too much detail, because these things take many years to build."
Nazim Salur acknowledges the importance of the warehouse management system but refrains from sharing details to maintain a competitive edge.
"It's a little crowded now, but because it's a good idea, any good idea attracts crowds, so I'm fine with the crowds."
Nazim Salur expresses his perspective on competition, suggesting that the crowded market is a testament to Getir's successful business idea.
"More than 90% of the tech startups are clones of the originals, actually. And sometimes clones do a better job than the originals."
This quote emphasizes the prevalence of replication in the tech industry and the potential for clones to surpass their predecessors in performance.
"So this open secret is 1500 skus. We carry in the ten minute model. So this number, we came up to this number after six years of experimentation with different numbers."
Nazim Salur reveals the result of extensive experimentation to find the optimal number of SKUs for their business model, which balances efficiency and consumer satisfaction.
"We respect the couriers a lot more than the industry does."
Nazim Salur explains the emphasis on treating couriers with respect and providing better working conditions, which is not common in the gig economy.
"Most drivers, most careers, we call them, they're trying to make a living."
This quote highlights the primary motivation for couriers across different locations, which is to earn a livelihood.
"Drops per hour is the main indicator of cost."
Nazim Salur identifies drops per hour as the main cost metric, explaining how it directly affects the company's delivery economics.
"It's like a little land grab is the name of the game, at least for the next few years."
Nazim Salur describes the aggressive expansion strategy as akin to a land grab, emphasizing the need for rapid growth over immediate profitability.
"The whole industry just got a few billion dollars. Compared to the amount of money that can be invested in tech, it's still very little."
Nazim Salur contextualizes the investment in the industry as relatively small, suggesting there is much more capital available for future growth.
"So there's going to be some regional champions here because look, I can't do 200 countries within the next two years. It's not humanly possible."
This quote highlights the speaker's understanding of the limitations in scaling their business globally and quickly, implying a strategic focus on selective markets.
"If the newcomers think they can win in three months, six months, boy, they're mistaken. This is not that game."
The speaker points out that success in their industry requires a long-term strategy rather than expecting immediate results.
"Some consumers are loyal, some aren't, and that's fine."
The speaker accepts the variability in consumer loyalty as a natural aspect of business, indicating a pragmatic approach to customer retention.
"Most people do. Okay, so you probably, let's say you're shopping... for some reason, maybe you like the store, maybe you like the people who work there, maybe you like, maybe it's nearby, maybe the product is better there."
This quote explains the various reasons why consumers might prefer one provider over another, emphasizing the complexity of consumer loyalty.
"What's more important is that frequency increases in time and it does increase in time."
This quote emphasizes the importance of growing customer usage frequency over time as a measure of success.
"We saw them buying more from us, buying more frequently, and all the time these numbers are increasing."
The speaker shares empirical data from their experience, indicating that customers tend to increase both the frequency and the amount of their purchases over time.
"We have about 400 questions about a new market."
This quote reveals the meticulous approach the company takes in evaluating potential new markets for expansion.
"Everywhere there's pizza delivery, there's going to be a 1015 minutes grocery delivery service, period."
The speaker expresses confidence that their service model will become ubiquitous, drawing a parallel with the widespread availability of pizza delivery.
"I shouldn't hurt you. So if I know from your previous purchases that you use a different ketchup, when you use the word ketchup or tomato, number one should be the one you use."
This quote emphasizes the speaker's commitment to personalizing the consumer experience over maximizing advertising revenue.
"But in the long run, I'll make more money because I treat you well. You'll keep me as your service provider."
The speaker articulates a business philosophy where prioritizing customer satisfaction leads to long-term financial success.
"Are you this white label company trying to manufacture everything this and that? Or are you a tech company trying to give the best service and do the last mile delivery?"
This quote reflects the strategic decision to focus on core competencies rather than diversifying into manufacturing private label products during a high growth phase.
"I think bluntly, Gopuff will be a dominant player in the US and I think they'll be one of two dominant brands in the US. And I think Getir will have Europe covered, we shall see on the US expansion plan."
The quote suggests that Gopuff is expected to become one of the leading brands in the US market, while Getir is expected to establish a strong presence in Europe. The speaker is uncertain about Getir's success in the US but hopes for a positive outcome.
"Gopuff is a serious competitor, but they're not doing the 10 minutes. We have a faster model. So give us some time to start operations in the US and let us operate for at least six months and then be the jury then."
Nazim Salur asserts that Getir's competitive advantage lies in its faster delivery model, which he believes will allow them to compete effectively once they begin operations in the US.
"I read at least 20 newspapers digitally every day, but the total 20 is less than 15 minutes. I look at the stuff and if something interesting I will read."
This quote reflects Nazim Salur's approach to staying informed about the world by quickly scanning multiple news sources and delving deeper into relevant topics.
"Mike Moritz invested in us, the others weren't brave enough to put their money in a Turkish business. And Mike Moritz didn't see this as Turkish, Egyptian or Malaysian or this or that. He looked at it as, I think, whether this is a good business or not."
Nazim Salur appreciates Mike Moritz's investment approach, which focuses on the business's fundamentals rather than its geographical location, demonstrating Moritz's confidence in Getir's potential.
"Hiring good people as fast as I would like. We don't grow. Just open up an office with five people, this and that. Our business is end to end."
This quote emphasizes the difficulty of scaling a business that requires a large workforce, highlighting the critical role of effective hiring practices in the company's expansion.
"I won't answer that. I don't put a ceiling to myself. We'll see where it goes."
Nazim Salur expresses his open-mindedness about Getir's future, indicating a belief in limitless potential and a willingness to adapt to the market's demands.