Spain’s Glovo, an on-demand supply app, has introduced a strategic partnership with Swiss-based actual property agency, Stoneweg.
The deal will see the latter make investments €100M in constructing and refurbishing “prime metropolis actual property” in a few of Glovo’s key markets because the supply app works to construct out its community of darkish shops and join extra retail companions for its city supply service, it stated right this moment.
The preliminary focus for the partnership can be on rising its darkish shops community in Spain, Italy, Portugal, Romania, with further international locations slated as below evaluation in Europe.
“These are the international locations during which each Glovo and Stoneweg have a significant presence, and due to this fact are capable of transfer a lot faster in terms of establishing,” a Glovo spokeswoman instructed us. “Nevertheless, the deal isn’t restricted to those international locations. Glovo’s purpose is to develop and strengthen their Q-Commerce and darkish kitchens infrastructure throughout Jap Europe too.”
Glovo at present operates 18 darkish shops globally — in cities together with Barcelona, Madrid, Lisbon and Milan — however stated it’s now seeking to open comparable shops in Valencia, Rome, Porto and Bucharest, amongst others.
It desires to have 100 darkish shops up and working by the top of 2021, it added.
Final September the startup introduced the sale of its LatAm ops to food-delivery focused rival Delivery Hero for $272M — leaving it extra absolutely centered on Southern and Jap Europe.
Then in November it introduced the launch of a devoted enterprise unit to assist enlargement of the sub-30 minute city supply service, which it calls ‘Q-Commerce’ (that’s ‘Q’ for fast) — saying it might speed up growth of a b2b providing to inventory third events’ merchandise in its metropolis heart warehouses (and have them delivered to buyers by way of the couriers doing gig work on its platform).
Glovo stated right this moment that the Stoneweg strategic partnership will assist it step on the gasoline to develop the infrastructure and fulfilment facilities it must underpin this b2b providing.
The ‘ship something’ app is spying a chance to capitalize on the coronavirus’ affect on conventional bricks-and-mortar retail — betting city shoppers will make a everlasting shift to outsourcing grocery and different comfort/important retailers to an app which bundles excessive velocity supply, somewhat than making such journeys in individual.
Its dialled-up deal with Q-Commerce is a direct response to “altering client sentiment and demand for fast and same-day supply”, it added.
Thus far, Glovo’s platform has delivered greater than 12 million multi-category orders globally, whereas in 2020 it skilled a development price of greater than 300% year-on-year.
In addition to supermarkets equivalent to Carrefour, Continente, and Kaufland, Glovo’s listing of retail companions contains the likes of Unilever, Nestle and L’Oréal, and IKEA — so it’s in no way centered purely on groceries.
It has stated it desires Q-Commerce to energy supply of a variety of merchandise — from toys, music, books, flowers and sweetness merchandise to pharmacy gadgets and groceries. And even, in some markets, a curated selected of IKEA wares — i.e. stuff that’s sufficiently small to slot in couriers’ backpacks.
Commenting on the Stoneweg strategic funding in a press release, Oscar Pierre, co-founder and CEO, stated: “We consider that the third-generation of commerce is already upon us. Following the shut of Stoneweg’s funding, we’re consolidating our strategic dedication to Q-Commerce, which can permit us to higher join folks with all kinds of obtainable merchandise of their cities.
“Within the wake of COVID-19, we consider that darkish shops signify the way forward for post-pandemic retail, and I believe we’ll see a everlasting shift in client habits in direction of same-day and instantaneous supply. We’re excited to proceed to broaden our providing, so that every one sorts of companies, from native impartial shops to multi-national chains, can attain an increasing number of prospects because of new technological options and extremely environment friendly infrastructure.”
In one other supporting assertion, Stoneweg’s Joaquín Castellví, founding companion and head of acquisitions for Europe, added that the strategic funding represents “a chance to supply our shoppers to diversify into a brand new class of retail asset via consolidated cities the place Glovo operates — in a section with nice development potential, accelerated by the scenario we’re experiencing”.
Glovo’s push to take a margin on a broad vary of city retail comes at a time when consolidation is consuming into the skinny margin meals supply house.
Additionally it is dealing with authorized challenges to its enterprise mannequin in Europe over the classification of couriers as self-employed — dropping a supreme courtroom ruling in its residence market final September.
Ministers in Spain are engaged on a brand new regulatory framework for supply apps and Glovo has stated it’s awaiting that reform earlier than making any adjustments however quite a bit can be using on the element.
UK-based Deliveroo additionally just lately misplaced a authorized problem in Spain over the classification of its couriers. A courtroom in Barcelona discovered last week that the corporate had falsely outlined 748 riders as self employed, following a 2018 office inspection.
The supply platform which competes with Glovo within the on-demand meals and grocery house, announced Sunday the closing of a Collection H funding spherical — elevating $180M+ from present traders, led by Sturdy Capital Companions LP and Constancy Administration & Analysis Firm LLC, which it stated valued the enterprise at over $7BN.
The funding would allow Deliveroo to proceed investing in “growing the most effective proposition for shoppers, riders and eating places”, it stated, noting that it might be increasing in on-demand grocery following “fast” development over the past yr.
Deliveroo added that the Collection H funding comes forward of a “potential” IPO — and stated it “displays sturdy demand from present shareholders to spend money on the corporate, given the numerous development potential within the on-line meals supply sector during which client adoption is accelerating”.