Business
Delivery app, Glovo, storms Nigeria’s logistics, home delivery service
…becomes bride of Nigerian products merchants, buyers
Just three years and four months after entering the Nigerian logistics and home delivery service market, Glovo, a Spain based multi-category on-demand delivery app, is expanding in the face of rapid growth.
From a small presence in June 2021 when it berthed in the nation’s commercial capital, Lagos as a food delivery company, Glovo has exploded in popularity, rapidly expanding its presence across the country within a short period.
Apart from the commercial city of Lagos where it helps companies to deliver purchased products to the doorsteps of buyers, the firm currently operates in two states capital, Ibadan in Oyo State and Port Harcourt in Rivers, as well as the Federal Capital Territory (FCT), Abuja.
Glovo became the toast of users with the provision of access to a wide range of services through the app, ranging from ordering their favorite meals from local restaurants, to same-day delivery of groceries, provisions, pastries, as well as pharmaceutical and health products from supermarkets, retail stores, bakeries and pharmacies at the touch of a button.
Business Hallmark reliably gathered that the firm initially found the delivery app service market hard to penetrate as already entrenched firms held on to their turfs, unwilling to yield ground to the new entrant.
However, owing to several innovative approaches, Glovo was able to break the stranglehold, transforming itself into Nigeria’s number one logistics and home delivery service firm.
One of the strategies used by the firm to win over the market, BH checks revealed, was through collaboration with independent couriers to fulfill customers orders.
The Glovo platform requires couriers to own their vehicles, either as an automobile or motorbike.
These independent couriers who must be 18 years and above, also need to own mobile phones for receiving orders.
The firm also rewards loyal customers/couriers by offering them membership of Glovo’s Monthly Club. The initiative gives loyal couriers a range of additional benefits and discounted delivery alternatives.
As a result, many Nigerian car and bike owners with time to spare have become instant couriers in an effort to augment their income.
It was also learnt that couriers working for competing delivery firms have continued to offer their services to the Barcelona headquartered firm.
Glovo is also leveraging on available technology to entice more users to the brand. Users are given the options of accessing the platform either via its site or by using one of its apps that are available for both iOS and Android users.
Another strategy deployed by the firm to win over the market, BH checks revealed, is the free delivery of first orders by new customers.
With this promo plan, items purchased by buyers through the firm are delivered to their doorsteps at no cost.
Not yet done, Glovo runs a birthday promo offer where customers get discounts of 20% off their next order.
To benefit from the promo, users need only to check for their Glovo birthday promo codes in their email or the app few days to their birthdays. The codes are usually sent a week before users birthday and are valid for 30 days.
Meanwhile, Glovo’s clientele in Nigeria has continued to grow with more retail outlets, bakeries, supermarkets, pharmacies and e-commerce firms like SPAR, Chicken Republic, Debonairs Pizza, MAMA CAS Restaurant, The Place, Sweet Sensation, Konga and Jumia, among others, daily penning delivery contracts with the delivery firm.
For instance, Glovo solidified its position as the market leader in on-demand commerce in the country by entering into a significant partnership with Chicken Republic, Nigeria’s largest QSR brand with over 300 stores nationwide.
The strategic alliance elevated Glovo as a key platform for Chicken Republic customers ordering online.
With the arrangement, Glovo now operates in over 70 Chicken Republic stores across Lagos, Abuja, Port Harcourt and Ibadan, driving customer access and convenience to Chicken Republic, while also expanding its own customer base.
In the same vein, Glovo recently partnered with SPAR Supermarket to enhance grocery delivery to its Nigerian customers.
The partnership, which was initially launched as a pilot in November 2023, was relaunched in August 2024 with Glovo extending its services to all 10 SPAR outlets in Lagos and Abuja.
Through the partnership, SPAR Market and Glovo offer customers the flexibility to have their groceries and household items delivered quickly and efficiently to their doorstep.
Speaking at the relaunch ceremony in August, Head of Commercial, Glovo Nigeria, Mr. Kolawole Adeniyi, expressed delight with the positive impact the partnership with SPAR Market would have.
According to him, expanding to additional stores will allow more people to enjoy quick and reliable grocery delivery.
“The expanded partnership now covers 10 SPAR Markets stores in key locations across Lagos (Mainland and Island) and Abuja, ensuring a wider accessibility for customers in these areas”, Adeniyi had assured at the relaunch in August.
Also speaking, the Deputy Managing Director, SPAR Market Nigeria, Mr. Prakash Keswani, said that the partnership with Glovo marked a significant milestone in providing an exceptional shopping experience for Nigerians.
He said leveraging Glovo’s ecosystem would ensure customers received their essential items quickly and efficiently.
“Looking ahead, SPAR Market is committed to extending Glovo’s services to every new store within Glovo’s coverage areas.
“This vision underscores both companies’ dedication to providing seamless, high-quality service to consumers across Nigeria.
“Additionally, all orders paid with a Mastercard will enjoy free delivery”, he said.
While Glovo helps connect sellers and buyers together; it also gets commensurable revenue from the arrangement. BH reliably gathered at the weekend that the firm makes money on commission on orders delivered.
According to a source in the firm, Glovo gets a commission in percentage on the fulfilling partners when the users have placed orders with them.
“This commission varies for different products but it is close to 35% for most of them”, the source, who did not want his identity revealed stated.
Founded in 2014 by Spanish entrepreneur, Oscar Pierre, and launched in 2015 by him and Sacha Michaud following an initial round of funding, Glovo has achieved a valuation exceeding $1 billion