More startup exchanges in the food delivery space: Spanish Glovo, an on-demand delivery platform that operates a dark network of stores focused on convenience shopping in the city, is deepening shopping from grocery shopping plans – announcing the acquisition of two regional “Instacart style” grocery pick-up and delivery start-ups, Madrid-based Lola Market and Mercadão in Portugal.
Terms of the acquisitions are not being disclosed.
Lola Market, founded in 2015, had raised around 3 million euros through Crunchbase. It is not known how much the Portugal Mercadão – which was founded in 2018 – has raised in its short term.
Glovo, meanwhile, raised a meaty $ 528 million Series F in April – but quickly spent $ 208 million to buy three food delivery brands from rival Delivery Hero in Central and Eastern Europe.
The Spanish on-demand delivery platform is facing challenges for its model in its own territory where the government has implemented a labor reform targeting delivery people in the odd-job economy.
The reform, approved earlier this year, went into effect last month – recognizing the passengers of the delivery platform as employees, or at least on paper.
Glovo responded by forcing a new model of freelance work on the vast majority of runners on its platform, hiring only around a fifth. The scene therefore seems ready for legal challenges in its national market.
At the European Union level, lawmakers are also seeking to improve conditions for platform workers – and could pass pan-European legislation that would have broader implications for the business models of regional players like Glovo.
Ongoing regulatory challenges regarding job classification and algorithmic worker management in the odd-job economy may provide a context for Glovo’s growing interest in grocery shopping in Europe, where it has built a network of dark stores to fuel what he calls “Q-commerce”. (aka, quick urban convenience shopping).
As well as for its recently announced international expansion in Africa, where it announced it would double its investments over the next 12 months.
But also the challenge of achieving profitability for delivering pure on-demand food seems to be an important piece of the puzzle here leading to consolidation.
By adding players in the supermarket and retail outlet pick-up delivery space, Glovo expands its coverage of shoppers’ needs – and can incentivize users to spend more by being able to cross-sell them on. planned purchases (like the weekly grocery store), as well as what she bills as “emergency essentials” and “quick action convenience” fueled by the more limited inventory she can offer in her stores. dark downtown stores.
The brand identities of Lola Market and Mercadão will be retained, according to Glovo, who also says they will operate independently – led by Gonçalo Soares da Costa, CEO of Mercadão.
It touts the acquisitions as strengthening its competitive position in Europe in “key markets” – going on to suggest that it will add grocery pickup and delivery across its market footprint, with initial expansion slated for Poland and Italy.
Also today, he said his Q-Commerce division was “on track” to achieve an annual gross transaction value (GTV) of more than 300 million euros this year – adding that it expects more. than to triple by the end of 2022, predicting that it will exceed an execution rate of 1 billion euros.
Commenting on his latest acquisitions in a press release, Oscar Pierre, CEO and co-founder of Glovo, added: Q-Commerce offer.
“With Lola Market and Mercadão on board, we can build stronger partnerships with retailers, offer our users wholesale purchases and provide a more comprehensive service. These acquisitions represent a significant step forward for us as we are now able to cover all major purchasing considerations for grocery customers, making Glovo a one-stop-shop for online grocery stores.