Glovo consolidates markets in line with leadership and profitability strategy

Glovo, the Barcelona-based on-demand delivery start-up, announced today that it will withdraw from four markets: Turkey, Egypt, Uruguay and Puerto Rico.

The decision falls in line with the company’s strategy to consolidate its global position and redistribute resources to core regions where it can establish itself among the top two delivery players and reach profitability by early 2021.

On January 21st, Glovo will withdraw from eight of the 306 cities in which it currently operates. Collectively, these cities contributed 1.7% of gross sales in 2019.

Oscar Pierre, Co-founder and CEO of Glovo, said: “This has been a very tough decision to take but our strategy has always been to focus on markets where we can grow and establish ourselves among the top two delivery players while providing a first-class user experience and value for our Glovers, customers and partners.

“Leaving these four markets will help us to further strengthen our leadership position in South West and Eastern Europe, LatAm and other African markets, and reach our profitability targets by early 2021.”

He continued: “I want to place on record our thanks to all of our Glovers, customers and partners in the markets from which we’re withdrawing for their hard work, dedication, commitment and ongoing support.”

Glovo continues to see strong global growth and investment; the company is currently the market leader in 17 out of 22 of the markets in which it operates globally. Following its home market, and largest one, Spain, reaching profitability in 2019, Glovo’s aim is to be profitable by early 2021.

The app will remain active and available in Turkey, Egypt, Uruguay and Puerto Rico for a few weeks and Glovo is offering support and advice to couriers, customers and partners throughout this transition.