Glovo’s Grand Gamble: Reinventing Quick Commerce
The quick commerce landscape has seen its fair share of ups and downs. While apps like Getir and Gorillas have faced valuation dips and operational challenges, one name stands out: Glovo. This Spanish-based last-mile delivery startup seems to have cracked the code, charting a path to potential profitability in a challenging sector.
Beyond Groceries: A Multi-Category Marvel
While many associate Glovo with food and grocery deliveries, the company’s vision is broader. They aim to bridge local businesses and consumers, offering hyper-convenience irrespective of the product type. Daniel Alonso Moreno, Glovo’s VP of Q-commerce, emphasizes their growth strategy: expanding beyond groceries. This diversification captures varied consumer needs and addresses a significant pain point in quick commerce – acquisition costs.
Back in 2019, Glovo inked a pivotal partnership with grocery giant Carrefour. This alliance allowed Glovo to delve deeper into the e-grocery realm, offering customers a view of their local store’s assortment and delivering items within minutes. Such partnerships help retailers tackle intricate last-mile delivery challenges. Moreno’s vision is clear: forge more alliances with top Spanish retailers to enhance scalability.
Glovo Ads: A New Revenue Route
Glovo isn’t just stopping at deliveries. They’ve launched Glovo Ads, a platform designed to boost visibility for retailers on the app. From in-app banners to sponsored searches, Glovo Ads offers a plethora of tools to help businesses grow. Rodrigo Alier, Global Director of Glovo Ads, envisions this as a step towards solidifying Glovo’s position as a trusted digital partner for brands and stores.
Glovo’s diversified approach seems to be paying off. Their profitability has seen a boost of €250 million YoY. But is this enough? The company believes partnering with more grocery retailers might be the key to achieving its financial goals. The broader strategy is evident: diversification is the name of the game, both in terms of product categories and logistics.
The Future of Quick Commerce
The quick commerce sector is in flux, with many players struggling to find footing. However, Glovo’s multi-pronged approach, from diversification to strategic partnerships, positions them as a potential leader in the space. Their journey underscores the importance of innovation, adaptability, and a keen understanding of consumer needs.
Glovo’s story serves as a beacon as the world of quick commerce evolves, illuminating the potential paths to success in this dynamic industry. Only time will tell if their formula is the winning one, but they’re certainly on the right track for now.
The original article is “In The Struggling Sector Of Quick Commerce, Glovo Might Have Found The Winning Formula.“