Earlier this year, Barcelona-based on-demand delivery startup Glovo went on an acquisition spree and acquired multiple Delivery Hero’s group companies for €170M. Today, the Spanish on-demand delivery startup has announced the acquisition of two grocery delivery companies Lola Market and Mercadão.
Both Lola Market and Mercadão connect supermarkets, traditional markets, and local independent stores with customers. While Lola Market operates in Spain, Mercadão is exclusive to Portugal. However, between the two companies, they have a portfolio of over 30 partners across the two countries.
Direct contact with the shopper
Founded in 2015 by Luis Perez del Val Sheriff, Lola Market is an online platform that offers service in the online purchase of food products in supermarkets, traditional markets, and neighborhood stores.
The customer can choose from a wide selection of shops available on the web or the service app and can even make simultaneous purchases in several establishments. Once the online purchase is made, a personal shopper is responsible for choosing each of the products on the shopping list that will be delivered in 1h or at the time the customer prefers.
Val Sheriff says, “we are very proud to be joining Glovo and Mercadão, and we believe that together we are offering users the very best groceries delivery experience in Europe. Our expertise in planned purchases and big basket deliveries, as well as our loyal user base and technology, make for a very attractive proposition.”
Founded in 2018, Mercadão is an on-demand marketplace exclusive in Portugal. The company offers consumers a one-stop-shop with 2-hour free delivery on big baskets from top retailers such as Pingo Doce, Decathlon, and more. The company’s goal is to be the reference same-day delivery marketplace in Portugal.
Speaking on the development, Gonçalo Soares da Costa, CEO of Mercadão, says, “Glovo has a very ambitious vision for the future of e-groceries in Europe and it’s one of which we are excited to be a part. We believe that the combined experience and talent of both Mercadão’s and Lola Market’s teams, coupled with Glovo’s international reach, will allow us to offer a truly unrivalled delivery service to customers.”
How will the acquisitions benefit Glovo?
Glovo claims that the acquisition of both Lola Market and Mercadão complements its growth strategy as well as strengthens its Q-commerce division. In terms of growth, the company has recently acquired Delivery Hero’s businesses in Eastern Europe and has signed a €100M partnership with Swiss-based real estate firm, Stoneweg.
Glovo believes that changing consumer habits are redefining the delivery industry and this deal is a reflection of that change; enabling Glovo to cover the main three purchasing occasions for groceries consumers: emergency essentials, fast-access convenience, and planned purchases (larger basket orders).
Both acquired brands will operate independently of Glovo; they will also fall under the leadership of Gonçalo Soares da Costa, CEO of Mercadão. The aim will be to replicate both Mercadão’s and Lola Market’s success in all the countries in which Glovo operates, initially expanding in Poland and Italy.
Oscar Pierre, CEO & co-founder of Glovo, says, “We see huge potential in the on-demand groceries marketplace, and both companies are strong local players in their respective markets, and further strengthen our Q-Commerce offering. With Lola Market and Mercadão on board, we can build stronger partnerships with retailers, offer our users big-basket purchases and provide a more complete service.”
Pierre further adds, “these acquisitions represent a significant step forward for us, as we’re now able to cover all of the main purchasing considerations for groceries customers, making Glovo a one-stop-shop for e-groceries.”
Get anything delivered
Founded in 2015 by Gerard Olive, Miguel Vicente, Oscar Pierre, and Sacha Michaud, Glovo connects customers with independent local couriers who acquire goods from any restaurant or shop in a city. In addition, the company also delivers urgent packages for a variable fee.
To date, the platform has delivered more than 190 million multi-category orders globally, as mentioned on its website. And, in 2020, it experienced a growth rate of more than 300 per cent year-on-year.
In addition, Glovo’s Q-commerce division is also on track to reach an annual Gross Transaction Value (GTV) of more than €300M this year, and expects that to more than triple by the end of 2022 surpassing a run rate of €1B.