September 18, 2021

Ukraine Breaking News

Ukraine Breaking News | The Latest News In Ukraine

Glovo has two shopping delivery and collection startups

There is more startup trade in the food delivery industry – Spain’s Glovo is expanding its reach into the planned grocery shopping space. The on-demand platform operates networks of stores in the dark and focuses on affordable urban shopping. It announced the acquisitions of Lola Market, Madrid, and Mercadao, Portugal.

Terms of these acquisitions were not disclosed.

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According to Crunchbase, the 2015 Lola market raised around 3 million euros. The amount that the Portuguese Mercadao, founded in 2018, raised during its short term is not known.

Glovo raised $ 528 million of Series F in April, but quickly spent $ 208 million to acquire three food delivery brands from rival Delivery Hero in Central or Eastern Europe.

Spanish on-demand delivery platforms are facing difficulties in Spain, where the government has implemented labor reforms targeting gig economy delivery workers.

The reform was agreed at the beginning of the year. took effect last month— Recognizing the runners and employees of the delivery platform or at most on paper.

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Glovo has responded to this by making it mandatory for motorcyclists to be self-employed. It only employs about a fifth of its passengers. The stage is set for legal troubles in the country.

EU lawmakers are also looking for ways to make platform workers more productive. This could include pan-EU legislation with wider implications for regional business models such as Glovo.

Ongoing regulatory issues related to job classification and algorithmic management of workers in gig economies could provide context for Glovo’s growing interest in spending in Europe. Glovo has built a network of obscure stores to support what it calls Q-commerce (also known as fast urban convenient shopping).

It also announced its recent international expansion into Africa. There, he said he would double investment for the next twelve months.

Consolidation is also a challenge because it requires achieving profitability to provide food on demand.

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Expanding Glovo’s reach for shoppers by adding new players to the grocery and retail stores that collect delivery space allows them to push them to spend more. It can also cross-sell customers on planned purchases, such as weekly grocery shopping. Glovo can also sell what it calls “emergency necessities” and “fast and affordable” because it has a smaller inventory in its dark urban centers.

Glovo says that both Lola Market and Mercadao brands will remain intact. They will also operate separately, according to Glovo. The CEO of Mercadao, Goncalo Saares da Costa, will lead them.

The acquisitions will strengthen its position in European “key markets”. He then suggests that it will broaden its reach on the market by adding food collection and delivery, including in Poland and Italy.

It also said its Q-Commerce division is on track to achieve a gross transaction value (GTV) of over € 300 million annually this year. The company added that it expects that figure to triple by 2022 and that the execution rate will exceed € 1 billion.

Oscar Pierre, co-founder and CEO of Glovo, said in a statement that the company’s latest acquisitions have given him hope. “We see huge potential in the on-demand food market. Both companies are strong local competitors in their respective markets. This will further strengthen our Q-Commerce offering.

We can strengthen our partnerships with resellers and offer large purchasing options to our customers and provide a full service. “With Lola Market, Mercadao and Mercadao joining us, we are able to build stronger relationships with them and make them easier. We are pleased to announce that we have acquired Lola Market and Mercadao. This now allows us to cover the major purchasing issues for grocery shoppers. Glovo is now an all-in-one e-grocery store.

Posted on Tue 14 Sep 2021, 10:09:04 +0000

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