Glovo is a quick-commerce start-up founded in Spain by Oscar Pierre and Sacha Michaud. This Spanish company operates as an on-demand courier service. Through its mobile app, customers are able to order and purchase products and food. A Glovo courier then picks up the order and delivers them to the customers. In 2021, its CEO plans to expand in Kenya. He needs to plan the company's entry into a new environment.
Antonio Moreno and James Barnett
Harvard Business Review (621094-PDF-ENG)
April 23, 2021
Case questions answered:
- Should Glovo focus on its core restaurant delivery operations or continue to expand into other areas, such as quick-commerce? What are the advantages and disadvantages for Glovo in quick commerce compared to players who specialize in ultra-fast delivery, such as Gorillas or goPuff?
- Compare the operations to fulfill quick-commerce orders from retail partners vs. from Glovo dark stores. Should the company prioritize growth with partners or with their own dark stores?
- Should Glovo offer 10-minute delivery?
Not the questions you were looking for? Submit your own questions & get answers.
Glovo: Expanding Quick Commerce Case Answers
1. Should Glovo focus on its core restaurant delivery operations or continue to expand into other areas, such as quick-commerce? What are the advantages and disadvantages for Glovo in quick commerce compared to players who specialize in ultra-fast delivery, such as Gorillas or goPuff?
Glovo is a quick-commerce start-up founded in Spain by Oscar Pierre and Sacha Michaud. This Spanish company operates as an on-demand courier service.
Through its mobile app, customers can order and purchase products and food. A Glovo courier then picks up the order and delivers it to the customers.
Glovo should continue to expand in other areas, such as quick commerce since it is the new trend in the commerce business. Businesses that keep up with the new trends are the ones that make the business last and keep on making it big in the market.
Quick commerce or Q-commerce includes the delivery of groceries and health and beauty products. These are considered essential products.
Due to the restrictions and fear brought by the pandemic, the demand has skyrocketed. Businesses should satisfy or exceed customers’ demands to grow in this industry.
The advantage of Glovo compared to other ultra-fast delivery services in their P900 project is that they have a standard delivery time of 10 minutes due to “dark stores.” This is shorter than their competitors in Q-commerce, who average a 30-minute delivery time.
A disadvantage would be that Gorillas and goPuff are already operating warehouses in more than 650 US cities. As these companies have already established a name, penetrating the same industry would be quite a challenge for the company.
2. Compare the operations to fulfill quick-commerce orders from retail partners vs. from Glovo dark stores. Should the company prioritize growth with partners or with their own dark stores?
The operations to fulfill quick-commerce orders from retail partners are as follows:
Glovo couriers are users who want to make life easier for other people by delivering them what they need when they need it. They are independent professionals who choose to make deliveries at previously scheduled times using their own vehicles.
Glovo couriers are known as Glovers. When a Glover receives an order…
Unlock Case Solution Now!
Get instant access to this case solution with a simple, one-time payment ($24.90).
After purchase:
- You'll be redirected to the full case solution.
- You will receive an access link to the solution via email.
Best decision to get my homework done faster!
Michael
MBA student, Boston
Best decision to get my homework done faster!