Increasing Startup Swapping in Food Delivery Spaces: Glovo, Spain, an on-demand delivery platform that operates a network of dark stores focused on urban convenience shopping, goes deeper into planned grocery shopping. Masu — Announced acquisition of “Instacart Style” in two regions Grocery picking and delivery startup, Madrid-based Lola Market, Mercadão, Spain.
The terms of the acquisition have not been disclosed.
Founded in 2015, Lola Market has raised around € 3 million per person. Crunchbase.. It is not clear how much the Portuguese Mercadan, founded in 2018, raised in a short period of time.
On the other hand, Globo grew plump things $ 528 Million Series F in April – However Soon to surge $ 208 million We will pick up three food delivery brands from rival delivery heroes in Central and Eastern Europe.
Spain’s on-demand delivery platform faces challenges for its home-based model where the government has applied labor reforms to delivery workers in the gig economy.
Glovo imposed a new self-employed model on the majority of riders on the platform, hiring only about one-fifth. This can lead to legal issues in the domestic market.
At the European Union level, parliamentarians Focus on how to improve the status of platform workers — And it may come with pan-EU legislation that has a broad impact on the business model of regional players like Glovo.
Employment classification and Worker algorithm management in the gig economy It may provide background to Glovo’s growing interest in grocery purchases in Europe. Glovo is the so-called “Q commerce” (also known as “Q commerce”) Quick Urban Convenience Store).
Not only for that Recently announced international expansion in Africa, The investment will double in the next 12 months.
However, the challenge of achieving the profitability of pure on-demand food delivery also seems to be a significant part of the puzzle that drives integration.
Glovo expands the reach of shoppers’ needs by adding players to the picking delivery space of supermarkets and retail stores. You can also encourage users to spend more by allowing cross-selling on planned purchases (such as weekly grocery stores). Also, due to the limited inventory available in dark stores in the city center, they are billed as “urgent necessities” and “convenience of quick response.”
According to Glovo, the brand identities of both Lola Market and Mercadão will be preserved and will operate independently under the leadership of Mercadão CEO Gonçalo Soaresda Costa.
The acquisition is touted as strengthening its competitiveness in Europe in the “major markets”. In addition, it plans its first expansion in Poland and Italy, proposing to add grocery picking and delivery throughout the market.
He added today that the Q-Commerce sector is “on track” to reach a total annual transaction value (GTV) of over € 300 million this year, more than tripled by the end of 2022. I did. The execution rate exceeds 1 billion euros.
Glovo CEO and co-founder Oscar Pierre commented on the latest acquisition in a statement: Q-Commerce offering.
“With the participation of Lola Market and Mercadão, we can build stronger partnerships with retailers, offer larger purchases to our users and provide more complete service. These acquisitions are food products. It represents a major step forward for us as we are able to cover all of the major purchase considerations of our customers and make Glovo a one-stop shop for electronic groceries. “
Glovo bags two grocery picking and delivery startups – TechCrunch Source link Glovo bags two grocery picking and delivery startups – TechCrunch