A German-based delivery company, Delivery Hero, acquired significant stakes in Glovo in a deal valued at €2.3 billion. Glovo is a Spanish-based food delivery app with substantial operations in Africa. The company boasts about 300,000 users, 8000 restaurants, and 12,000 couriers in Nigeria, Ghana, Morocco, Uganda, and Kenya. Glovo has also launched adjacent services in Africa, including financial services and payments.
The unpredictable nature of the African environment remains a significant concern for any business. Glovo, with over 30 million dollars investment in the region, has broken through this “Harsh Terrain”. This deal represents more than acquiring assets but purchasing an already established powerhouse in the continent’s delivery world.
According to the company’s CEO, Niklas Ostberg, “The team at Delivery Hero has admired Glovo for a long time, and Glovo will continue to run with their existing brand”. The deal will be closed in the second quarter of this year (2022). Beyond its competitive presence to the likes of Uber and Jumia, the future for Glovo is postured towards having sufficient strength in acquiring other local businesses in the region.