More startup swapping in the food delivery space: Spain’s Glovo, an on-demand delivery platform that operates a network of dark stores focused on urban convenience purchases, is being pushed further into planned grocery shopping , Madrid-based Lola Market and Portugal’s Mercado.
The terms of the acquisition have not been disclosed.
Founded in 2015, Lola Market raised around M3M per crunchbase. It is not clear how much Portugal’s Mercado – which was founded in 2018 – grew in its short term.
Glovo, meanwhile, raised the F 528M Series F in April – but quickly exploded to $ 208M to buy three food delivery brands from rival delivery heroes in Central and Eastern Europe.
The Spanish on-demand delivery platform is facing challenges against its model on home turf where the government has implemented labor reforms aimed at delivery workers in the gig economy.
The amendments, agreed earlier this year, came into application last month – on delivery platform riders as employees, or at least on paper.
Glovo responded by imposing a new self-employment model on most riders on its platform, renting only around one-fifth. So the scene seems ready for legal challenges in its home market.
At the EU level, legislators are also looking at how to improve the status of platform workers અને and may come up with Pan-EU legislation that has far-reaching implications for regional players ’commercial models, such as Glovo.
The ongoing regulatory challenges to employment classification and the algorithmic management of workers in the gig economy may provide some context for Glovo’s broad interest in grocery shopping in Europe, where it is building a network of dark stores known as ‘Q-Commerce’. (Aka, fast urban facility purchase).
As well as for the recently announced international expansion in Africa, where it has said it will double investment in the next 12 months.
But the challenge of achieving profitability for pure on-demand food delivery seems to be a big part of the puzzle that runs the consolidation here.
By adding players to the delivery space in supermarket and retail outlets, Glovo expands coverage of shoppers ’needs અને and can shake up users to spend more by being able to cross-sell on planned purchases (such as a weekly grocery store). As well as what it bills as “emergency requirements” and “quick action convenience” it is powered by a more limited inventory that it can offer in its city center dark stores.
Both Lola Market and Mercado’s brand identity will be retained, per Glovo, which also says they will operate independently – led by Mercado’s CEO Gonalo Soares da Costa.
It is acquiring to strengthen its competitive position in Europe in the “major markets” – indicating that it will enter grocery selection and its entire market with initial expansion plans for Poland and Italy.
It also said today that its Q-Commerce division is “on track” to reach an annual gross transaction value (GTV) of more than M300M this year, adding that it expects it to triple by the end of 2022. . rate exceeds the run rate of 1BN.
Commenting on his recent acquisition in a statement, Glovo CEO and co-founder Oscar Pierre added: “We see huge potential in the grocery market on demand and both companies are strong local players in their respective markets, strengthening our company.” Commerce offer.
“With Lola Market and Mercado on board, we can build stronger partnerships with retailers, offer larger-basket purchases to our customers and provide a more complete service. This acquisition is an important step for us, as we now have grocery We can cover all the main shopping items for the customers, and make Glovo a one stop shop for e-groceries.