Glovo app to disrupt Nairobi delivery services space with new funding
Glovo delivery services app just raised KES 17 billion (USD 169 million) in a series D funding much of which will be channeled to strengthening the Nairobi business unit, and launching new units in Ghana, Tanzania and Nigeria. The Spanish start-up was launched in 2015 and has its headquarters in Barcelona. In 2018, it raised KES 13.5 billion (USD 134 million).
How the Glovo delivery app works
Glovo delivery app has an innovative yet simple approach in helping people complete and have their merchandise delivered to them. It aids you purchase, pick-up, and receive anything you order through the app – all without you moving an inch.
For instance, if you want some groceries and you are running late at the office, you simply open the app and order the groceries from the store of choice then sit back. The app service does your shopping, packs it up and then delivers it to your selected destination. That means you do not have to go to the supermarket to queue and shop by yourself – just receive your groceries and go home.
How Glovo is disrupting Nairobi delivery space
Nairobi is yet to see the last of tech launches and start-ups, if the entry of Glovo last November is anything to go by. It is the choice city for launching tech disrupters in Africa, which affect entire industries around the world. As far as delivery services go, courier services in the city will be affected most for the following reasons:
- Glovo charges ridiculously low prices for delivery in Nairobi. At a minimum of KES 50 and a maximum of KES 100, traditional courier services would view it as a ludicrous competitor. It will simply put them out of business. Most courier services charge between KES 250 – KES 350 within Nairobi for door-to-door delivery.
- Glovo uses independent couriers who sign up with the app, just like taxi hailing apps. That means the closest courier does the work for the user, hence reducing the delivery times and cost greatly. The app says it aims to make it to 20-minute delivery time within the city.
- Glovo can deliver both edible products, ie foods, drinks, as well as offer normal courier services. It is like an all-in-one package for the user. Traditional courier services do not deliver foods and drinks and some do not deliver breakables.
- Being an on-demand app, it means a user can order for anything at anytime and it will be delivered within an agreed timeline. Courier services do not have this luxury of servicing just a single customer’s order. They always deliver in bulk for specific destinations before sorting out the deliveries, meaning more time and higher cost.
Kenya currently has 47 million smartphone users who the Glovo head of marketing for Sub Saharan Africa Priscilla Muhiu said the firm aims to reach. With a countrywide expansion on the cards, the firm will use part of its cash to build stores and kitchens to cater for food orders, as well as buttress its tech team. The app currently has 120 riders in Nairobi.