The multi-category app Glovo has reached an agreement to acquire the Portuguese grocery delivery company Mercadão. To complement this acquisition in Portugal, Glovo is also acquiring the Lola Market platform in Spain.
Both Mercadão and Lola Market are on-demand delivery platforms that connect supermarkets, traditional markets, and independent stores to customers. Between the two, they have a portfolio of over 30 partners.
These acquisitions will complement Glovo's growth strategy and strengthen the Q-Commerce area, complementing the recent acquisitions of Delivery Hero's operation in Eastern Europe, as well as the €100 million partnership with the Swiss company Stoneweg, which operates in the real estate investment sector.
Q Commerce
Glovo believes that consumer habits are constantly evolving and, consequently, redefining the industry. These latest acquisitions reflect this change, allowing them to reach the three main grocery shopping occasions: urgent essentials, quick access convenience, and planned purchases.
Following these acquisitions, Glovo's competitive position in Europe will be strengthened in key markets. “ We see enormous potential in the on-demand grocery marketplace, and both companies are strong local players in their respective markets, giving us the opportunity to strengthen our Q-Commerce offering. With Mercadão and Lola Market on board, we can build better partnerships with retailers, offer our users the option of planned shopping and restocking, and provide a more complete service. These acquisitions represent a step forward for us, as we can now meet all types of grocery purchases, making Glovo a one-stop shop for online grocery shopping ,” says Oscar Pierre, CEO and co-founder of Glovo.
Growth
Glovo anticipates that its Q-Commerce business will reach €300 million in gross revenue in 2021, and expects to more than triple that figure in 2022, to over €1 billion.
Both brands will retain their respective identities and will be independent from Glovo. Both will be led by Gonçalo Soares da Costa, CEO of Mercadão. The goal is to implement and replicate the success of Mercadão and Lola Market in the markets where Glovo operates, starting with Poland and Italy.
“ Glovo has a very ambitious vision for the future of online grocery shopping, and we are excited to be a part of it. We believe that the combined experience of the Mercadão and Lola Market teams, along with Glovo's international reach, will allow us to offer an unparalleled service to our customers. We are very excited and determined to embrace this great challenge ,” adds Gonçalo Soares da Costa, CEO of Mercadão.
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