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Rethinking the local store model, Glovo aggregates businesses into its app and delivery service, so nearly any type of goods can be delivered within minutes.

Limited on-demand options

Existing platforms offer on-demand delivery for food and grocery only.

Limited by distance

Majority of local stores can only reach customers in their neighborhoods.


US$91.7 billion

Estimated global revenue of online food delivery in 2017.

More expansion anticipated as growing demand for food takeout/delivery had already boosted the market in Western Europe to £18.4 billion (about US$25 billion) in 2015.

On-demand delivery service platform that lets users order any type of goods from multiple suppliers such as pharmacies, restaurants and grocers - and have them delivered within an hour. Customers can track orders real-time via instant messaging with the Glovo couriers to get geolocation details through the app.
On-demand delivery service platform that lets users order any type of goods from multiple suppliers such as pharmacies, restaurants and grocers - and have them delivered within an hour. Customers can track orders real-time via instant messaging with the Glovo couriers to get geolocation details through the app.
The Glovo model relies on a strong local urban network that enables customers to order nearly any type of product from local merchants in the city. Its business structure and technology help to keep delivery fees low, while offering an accessible and convenient service to attract and retain users.

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Network through partnerships

Glovo identifies the market potential of prospective retail partners and establishes profitable partnerships with both physical stores and e-tailers. For example, 90% of its existing partners do not offer direct delivery of goods to their consumers. Glovo offers API integrations into the online stores of the retailers to help them to increase delivery capacities and to decrease delivery times. 

Use of couriers in a sharing economy

Glovo uses the same model as Deliveroo to build its workforce. The Glovo couriers, aka Glovers, are independent workers who get to keep 70–80% of the delivery fees plus any tips.  They can also choose their working days and times. The average working time for a Glover varies from two to three hours a day, giving them the option to take on other jobs or activities to supplement their income.

Work flexibility is needed by freelancers and independent workers, especially for the younger ones like students. New job trends indicate that more people nowadays prefer to have more  freedom, flexible working hours and multiple sources of income.

The number of people who have become Glovers is growing exponentially. That’s a key success factor in its business model since couriers are essential to the platform’s success, where both marketplace and workforce should grow at the same pace to guarantee a scalable business model to compete with other players in the market. 

Income model  

Glovo earns fees from its “premium partners” and e-commerce partners who pay for the use of the platform services. Its business model does not rely on charging consumers, but seeks to boost orders and retain customer loyalty by striving to lower delivery charges for larger quantities.

Rapid expansion and international growth

Glovo has to grow rapidly because of the intense competition in the market. Most of the company’s fundings have been designated for international expansion. Glovo has acquired Italy’s Foodinho to quickly penetrate the Italian market by converting the food delivery platform into the Glovo business model. This has been by far the winning formula for Glovo’s rapid growth. 

Focused on B2C 

Glovo offers incentives to users who order from its app, positioning itself as an e-commerce platform for express shopping and fast deliveries. It’s not part of its strategy to enter the more specialized B2B logistics market where it lacks the same competitive advantage as for the B2C ecosystem.


  • Launch
  • Growth
  • Recent Developments
  • Future Plans
  • 2015 - Glovo was launched in Barcelona; secured seed investments; rapidly expanded national coverage.

    Read in detail:

    The launch

    March, Glovo registered its first order after launch in Barcelona.

    • Oscar Pierre had previously studied in the US and learnt about Postmates. He teamed up with Canadian-Brit Sacha Michaud to start a similar on-demand local delivery service in Spain, starting with Barcelona.


    September, Glovo launched operations in second city Madrid.

    November, expanded rapidly with launch in third city Valencia.

    • Reached 20,000 app downloads.
    • Received award by Google for mobile innovation in the retail sector.


    March, received seed investment of €140,000 in same month as launch.

    November, secured second round of investment of  €2 million.


    On-demand delivery services was a complicated and difficult sector for attracting investors. 

    • When Glovo was just at its early stage of development, when many similar projects were closing down within the first two years of activity, it was a struggle to become profitable in a business where margins are usually pretty small.
    • The key to success was to “carve out our space here in Spain and to move quick” because of increasing crowded competition, explained co-founder Sacha Michaud. Glovo was originally conceived in January 2015, launched its app in March and operating in Spain’s three biggest cities by November 2015.

  • 2016 - Set 50% month-on-month growth targets; expansion into Italy and France; received Series A funding and media-for-equity deal with Atresmedia.

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    Glovo set its growth plan to achieve 50% month-on-month increases in deliveries.

    March, started international expansion with first acquisition in Italy of Foodinho, a GPS food-delivery service based in Milan.
    • Foodinho delivery times were less than 30 minutes, similar to Glovo with the exception that Foodinho was only focusing on restaurant food deliveries.
    • The merging of these two service providers established Glovo as the leading mobile marketplace for buying any type of goods with one-hour delivery times.
    • Foodinho’s founder Matteo Pichi became Glovo’s new Country Manager in Italy.
    May, Glovo expanded into France by launching operations in Paris.
    September, further expansion in Spain with operations in Zaragoza, Sevilla and Malaga.
    November, won the Expansión Prize as best digital idea for the new business model category.

    August, received Series A investment of €5 million to strengthen Glovo’s market positioning and technological development.
    • Taking part in this round were original backer Antai Venture Builder, Seaya Ventures, Entreé Capital, Caixa Capital Risk, Bonsai Venture Capital SCR and Javier Sánchez Marco.
    October, Glovo signed a media-for-equity agreement with Atresmedia group.
    • Atresmedia, part of Media Digital Ventures, started the media-for-equity fund in 2015 with the owners and founders of Antai Venture Builder to invest €35 million in advertising assets.
    • Atresmedia had also used the same investment methodology of exchanging equity funds for advertising assets with emerging startups like Wallapop, Deliberry, Restaurantes.com and Hundredrooms.
    • Media-for-equity were uncommon in Europe until early 2000. It is more popular nowadays because the mass-communication channels are now mainly used by B2C and mass consumer products and services companies. 

  • 2017 - Glovo scaled up national coverage with McDonald’s in Spain and Italy; raised €30 million Series B funding with estimated valuation of €70 million.

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    Products and services
    June, Glovo signed an exclusive agreement with McDonald’s in Spain and Italy to improve the fast-food chain’s deliveries in partnership with McDelivery services.
    • The Glovo platform was expanded with a dedicated McDonald’s category. Users could order any menu items without a minimum order requirement and get it delivered to their doorsteps in less than 30 minutes.
    • Glovo had to compete with tech giants such as UberEats and Deliveroo. Glovo won the contract by offering the fastest response time and a business model that was tailored to the partner’s technological and logistical needs.
    • The agreement was a win-win situation for both parties. McDonald’s would benefit from an additional sales channel by offering customers a home-delivery option through Glovo, enabling Glovo to increase market share through a strategic alliance with a popular global fast-food chain.

    March, expansion to new cities outside the metropolitan area of Madrid. 
    • The goal was to improve regional coverage in the northern areas of Madrid like Majadahona and Las Rozas, and in the southern suburbs of Móstoles, Alcorcón, Getafe, Fuenlabrada and Leganés.

    September, raised Series B €30 million from Rakuten Ventures and Cathay Innovation.
    • Rakuten and Cathay Innovation invested equal amounts of €7.9 million each.
    • A third major investor Seaya Ventures contributed with a slightly lower amount. Rakuten and Seaya Ventures are board members and main investors of Cabify.
    • Other minor investors were previous backers Antai Venture Capital, Bonsai Venture and other individual investors.
    • Glovo was estimated to value at €70 million after the capital injection.

    Key personnel
    October, Glovo roped in adviser for its expansion strategy Niall Wass, a former SVP at Uber then seen as Uber co-founder Travis Kalanick's most senior executive outside the US, heading Uber's global expansion.
  • Recent Developments

    In July 2018, Glovo raised €115 million in Series C funding -- one of the largest raised in Spain so far in 2018. The money was sourced from existing Glovo investors such as Rakuten, Seaya Ventures and Cathay Innovation (all participated in its Series B); AmRest Holding, the largest restaurant chain in Central and Eastern Europe; and European funds Idinvest Partners, GR Capital and others.

    The new capital injection will be mainly used to optimize the platform and to boost technical developments seen to require hiring 100 more engineers. Glovo will also use the monies to fund its international expansion and boost its position in new markets (especially LatAm and EMEA).

    In 2Q 2018 alone, Glovo expanded into 6 new countries and 20 new cities worldwide.

    Glovo also announced a new addition to its board of directors, Niall Wass, a former SVP at Uber then seen as Uber co-founder Travis Kalanick's most senior executive outside the US, heading global expansion. Wass currently also advises Glovo on expansion strategy and is a partner at London-based VC Atomico. 

  • Future Plans
    Aside from its international expansion fueled by investments from big players like Cathay Innovation and Rakuten Ventures, Glovo will also face new challenges to further increase growth rates and profitability from a business model that operates on thin margins.

    Enter new verticals to become an even more diverse e-commerce platform - offering a wider range of food and non-food products, ranging from everyday essentials to luxury goods.

    Reach 25,000 delivery staff by end-2018.

    Improve service quality to new levels of excellence. Most of the effort will be directed toward improving minor non-food categories, while in-app technology and functionalities will be optimized to improve user experiences.

Updated: 07/2018

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