11/08/2023

Ahold Delhaize to Sell FreshDirect to Getir

Food retailer to focus investments on its omnichannel businesses

Digital Editor

Founded in New York City in 2002, FreshDirect was acquired by Ahold Delhaize USA in January 2021.

Ahold Delhaize USA has entered into an agreement to sell its FreshDirect business to Getir, a provider of ultrafast grocery delivery operating in key markets in the United States and globally. Following a thorough review, Ahold Delhaize USA made the decision to sell the FreshDirect business to focus investments in its omnichannel businesses.

“This was a difficult decision, especially given FreshDirect’s rich history in the New York City area,” said JJ Fleeman, CEO, Ahold Delhaize USA. “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.”

In the company’s latest quarter, Ahold Delhaize’s net consumer online sales increased by 6.4% at constant exchange rates. Double-digit growth at Food Lion and Hannaford banners as well a strong market share gain fueled this performance.

Founded in New York City in 2002, FreshDirect was acquired by Ahold Delhaize USA in January 2021. Headquartered in the Bronx and serving the greater New York tri-state area, FreshDirect has 3,200 employees.

“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,” added Fleeman. “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.”

There are no changes for FreshDirect customers as a result of the transaction, which is expected to close by Nov. 30. All customers will continue to be served by their local delivery teams. In addition, there are no changes to DeliveryPass subscriptions or other services.

Getir is no stranger to acquistions. The company acquired Berlin-based on-demand delivery company Gorillas in Dec. 2022. Getir cemented its position as a “decacorn” — a company with a value exceeding $10 billion – in March 2022.

Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize, operates more than 2,000 stores and more than 20 distribution centers across 20-plus states and is No. 10 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century and its 10 Most Sustainable Grocers.