On-demand delivery app, Glowo from Spain has announced a strategic partnership with Swiss-based real estate firm, Stoneways.
The deal will invest 100m in some of Glavo’s post-construction and refurbishment of “prime city real estate” in some of its key markets as more retail partners to build its network of distribution app Dark Stores and its urban distribution service It works today, it said today.
The initial focus for the partnership will be on developing its Dark Stores network in Spain, Italy, Portugal, Romania, with additional countries under review in Europe.
A Gloveo spokesperson told us that these are countries in which both Gloveo and Stongg have a major presence, and are therefore able to move much faster in establishing it. However, the deal is not limited to these countries. Glowo also aims to develop and strengthen its Q-commerce and dark kitchen infrastructure in Eastern Europe. “
Glowo currently operates 18 dark stores globally – in cities including Barcelona, Madrid, Lisbon and Milan – but it is now looking to open similar stores in Valencia, Rome, Porto and Bucharest.
It wants to store and operate 100 Dark by the end of 2021.
Last September, the startup announced Sales of its LatAm ops to food-delivery focused rival Delivery Hero for $ 272M – Excludes this and focuses entirely on Southern and Eastern Europe.
Again November It announced the launch of a dedicated business unit to support the expansion of the sub-30-minute urban delivery service, which it calls ‘Q-commerce’ (‘Q’ for accelerated) – saying that for share The development of the B2B offering will accelerate the growth of third-party products in their city center warehouses (and they are passed on to shoppers through gig working couriers on their platform).
Glowo said today that the Stongg strategic partnership will help develop the infrastructure and fulfillment centers by stepping on gas, which is required to underpin this B2B offering.
The ‘Distribute Anything’ app is spying an opportunity to capitalize on the impact of coronoviruses on traditional bricks and mortar retail – betting will be a permanent shift to outsourcing grocery and other convenience / essential stores to urban consumers that make the app Bundles: High speed bundle delivery, rather than taking such trips in person.
Its dial-up focus on Q-commerce is a direct response to “changing consumer sentiment and demanding immediate and same-day delivery”.
To date, Glowo’s platform has placed more than 12 million multi-category orders globally, while in 2020 it experienced a growth rate of over 300% year-on-year.
As well as supermarkets such as Carrefour, Continent and Cofland, Glavo’s list of retail partners includes the likes of Unilever, Nestle and L’Oreal and IKEA – so it focuses on groceries without any meaning.
It has stated that it wants Q-Commerce to deliver a wide range of products – such as toys, music, books, flowers and beauty products, to pharmacy items and groceries. And even, in some markets, a Curate of IKEA Mall selected – ie luggage that is small enough to fit in a courier backpack.
Co-founder and CEO, Oscar Pierre, in a statement, commented on the Stongg strategic investment: “We believe that the third-generation commerce business is already upon us. After Stongg’s investment comes to a close, we will see Q- Are strengthening our strategic commitment to commerce, which will allow us to better connect people with the many types of products available in our cities.
“In the wake of COVID-19, we believe that dark stores represent the future post-epidemic of the future, and I think we will see a permanent change in consumer habits for same-day and immediate delivery. We are excited to continue expanding our offering so that businesses of all types, from local independent stores to multi-national chains, can reach more and more customers thanks to new technology solutions and highly efficient infrastructure. “
In another supporting statement, Stoneweg’s Joaquín Castellví, partner and head of Europe’s acquisitions, said the strategic investment “provides our customers with the opportunity to diversify into a new class of retail asset through consolidated cities where Gloveo operates Happens – accelerated by the situation we are experiencing, with great growth potential in a segment ”.
Gloveo’s push to take margins over a wide range of urban retail comes at a time when Consolidation The thin margin is eating in the food delivery space.
It faces legal challenges to its business model in Europe over the classification of couriers as self-employed – losing a Supreme Court ruling in its domestic market September.
Ministers in Spain are working on a new regulatory framework for the delivery app and Glowo has said that improvements are awaited before any changes are made but much will go into detail.
Britain-based Deliveroo has also recently lost a legal challenge in Spain over the classification of its couriers. A court in Barcelona found Last week The company misinterpreted 748 riders as self-employed following a 2018 workplace inspection.
The delivery plate that competes with Glowo in the on-demand food and grocery space Announced The closing of a Series H funding round on Sunday – raising $ 180M + from existing investors, led by Durable Capital Partners LP & Fidelity Management & Research Company LLC, which said the business is worth more than $ 7BN.
The investment will enable Deliveroo to continue investing in “developing the best offers for consumers, riders and restaurants”, he said, noting that it was “faster” than the previous year following the growth in on-demand grocery Will expand.
Deliveroo said that Series H investment comes ahead of a “potential” IPO – and said it “reflects strong demand from existing shareholders to invest in the company, given the potential for significant growth in the online food delivery sector” Consumer adoption is accelerating ”.