Think Forward: Sacha Michaud’s Outlook for 2024
Early on, when I first met my co-founder, Oscar, I remember feeling really energised by our shared passion for what could be achieved thanks to the evolution of the smartphone and the massive potential of the sharing economy and on-demand services. In those days, Spain’s tech sector was not that developed, there hadn’t been too many role-models of global tech success stories coming out of the country. Now, after close to 9 years of working together and building Glovo into what it is today, I believe that we have an incredible future in front of us but that it won’t be without its challenges.
This coming year feels super exciting. Many of our markets are now at a stage where we can begin building on top of the very solid core businesses we have created. I know that to take Glovo to the next level in 2024 and beyond, we really need to focus on great service- great service to our millions of customers and also great services and tools for our hundreds of thousands of partner shops and restaurants as well as our couriers.
This is my vision for how 2024 will play out for Glovo and the tech industry.
1. The Future of Tech in Europe
I believe that European lawmakers are trying to put in the foundations of a strong tech sector in Europe and ensure that the next tech champions are born in Europe and not necessarily in the United States or Asia. At an EU level, we’re seeing a lot of new regulations emerging, like the AI Act, the Digital Services Act, the Digital Markets Act, and the Platform Work Directive that will determine how competitive Europe is for tech. This year marks a key moment for tech companies in Europe as they face tough regulation that could potentially stifle innovation. Regulators need to ensure that the tech industry and the startup ecosystem in Europe don’t become constrained due to overregulation.
As a prominent player in the European tech sector, we think it is important to have an active role in the conversation, helping to lay down the necessary framework for a thriving European tech hub. If the right ecosystem can be built, it will help the tech innovators of tomorrow scale their businesses and become market and world leaders.
The reason we’ve delved into this venture is because we believe it’s the responsibility of those who have already been on the startup journey to help nurture the community by sharing their knowledge, experience – and yes, luck – with aspiring entrepreneurs. In the hopes of ensuring European tech startups will be competitive on a global stage, I’ve joined as an Advisory Board member of the European Startup Nations Alliance (ESNA) and Glovo has held startup competitions in a number of countries where we operate. Inside of Glovo, we have started Glovo House – our entrepreneurship community and springboard for current and former Glovo employees.
Europe has a wealth of untapped entrepreneurial potential and I think in the second half of the year we will start to see a positive trend for startup funding as interest rates start to come down and capital becomes more widely available.
2. Artificial Intelligence will reshape habits
Like many big tech players, we’ve been using Artificial Intelligence (AI) and Machine Learning (ML) for a while now—nothing surprising there. But what’s catching everyone’s eye this year is the rapid development in Generative AI.
In the past ten years or so, I’ve noticed things picking up speed in the tech world. People and businesses are getting better access to AI tools, and it’s changing the way everyone does business. Ultimately, it’s not just about the tech itself; it’s about how we use it. From developers to business decision-makers, we now have the power to speed up processes, make better decisions, and more. And for Glovo, especially for our customers, partners, and couriers, it means their basic interactions with our platform will change in the future.
We might just be at the start of something as big as what browsers did for the internet or what apps did for smartphones. Looking ahead, I think these advances in AI will result in some cool changes in user experience. Imagine this: instead of navigating a menu, your AI assistant will suggest the best options for you in a way that feels like a conversation with a friend. The future of AI holds exciting possibilities, changing the way we connect with technology and the world around us.
3. Instant Convenience is here to stay
Getting goods delivered used to take a week or two, but now it’s down to 1 week, 48 hours, or in the case of Glovo – minutes. Today, the big deal in online shopping – and the fastest growing segment in e-commerce – will be all about instant convenience.
E-commerce platforms are often large players and unless they have warehouses in the outskirts of larger population areas, their products are hundreds or thousands of miles away from their customers, making them impossible to deliver within the same day or immediately. So, the real trend we’re seeing is about giving customers visibility to goods that are nearby. Not only is this method quicker, but it’s also better for the planet because goods are coming to consumers from right around the corner.
Consumers are already checking online to order goods so the question is really, where does Glovo fit in? First, we’ve got a network of more than 170,000 local shops and restaurants in place, which not only gets their goods online but helps them to digitise their business. Second, the logistics we have in place are what makes 30-minute drops possible. Glovo makes ordering easy because customers know where they will be in the next 30 minutes, and everything is instantly available. Simple as that.
What Comes Next
At the end of 2023, my New Year’s Resolution for Glovo was to double down on Q-commerce and we have seen a strong growth of that vertical that I believe will continue. Though, we have to acknowledge that we work in a very competitive industry, so to boost this growth even more, it will require efficiency and focus.
We know that going digital will be a make or break for small businesses in the next few years so the #1 thing we can do to become their preferred partner is to ensure they have a great experience with us through our technology and logistics platform. Not only will this allow for a seamless experience for our end users, but it will also help to uplift local businesses and drive incremental revenue through a new digital channel.
My hope for 2024? Today, close to 50 startups have been started by former Glovo employees and it’d be amazing to see that number double by the end of the year. Glovo’s legacy will be our talent, the people and the amazing companies founded by Glovo employees. To date, the companies founded by ex-Glovo employees and supported by the Glovo House initiative have raised over €168 million in funds, with the current companies valued at over €588 million.
It’s super exciting to think that in 10 years time, there could be 20 unicorns created by the Glovo team. I hope that by fostering an entrepreneurial spirit among our employees, we can build a network that will have a huge impact. I can say for certain that I feel excited for what’s to come.