Delivery Hero to acquire Latin American business of Glovo in €230m deal
Delivery Hero, a German online food ordering company, has agreed to acquire the Latin American (LATAM) operations of on-demand delivery start-up Glovo for up to €230 million.
The consideration includes performance-based payment of up to €60 million.
Glovo enables its users to buy, collect, and send any product or item within their city. The Spanish company operates in more than 650 cities in 22 nations across EEMEA, LATAM, and Sub-Saharan Africa.
Across the world, the Spanish on-demand delivery start-up has over 2.5 million monthly active users, 50,000 active couriers, and more than 50,000 associated partners.
Niklas Östberg – CEO and Co-Founder of Delivery Hero said: “Latin America is a region with exceptional growth potential for online delivery. Acquiring Glovo’s local operations gives us the opportunity to double down on our efforts to drive innovation, continuously improve customer experience and support local vendors in the region.
“We have been working closely with Glovo for many years, and are proud to incorporate their Latin American services into our global network.”
The deal will cover all of the Latin American nations where Glovo operates. These include Argentina, Peru, Ecuador, Honduras, Panama, Costa Rica, the Dominican Republic, and Guatemala.
Delivery Hero is already operating in Argentina, Panama, and the Dominican Republic, and the newly acquired assets in the markets will be transferred to it at closing.
The German online food ordering company by acquiring Glovo’s operations in Peru, Ecuador, Costa Rica, Honduras, and Guatemala, adds five new countries to its Latin American presence.
Glovo will continue to operate the on-demand delivery business in the countries until March 2021.
The on-demand delivery start-up said that it will try to bolster its footprint in its core markets and will continue to grow into new markets while increasing its presence across South West Europe and EEMEA. This month, Glovo will open operations in new markets such as Moldova, Kyrgyzstan, and Uganda.
Oscar Pierre – CEO of Glovo said: “We feel that it’s important to focus on key markets where we can build a long-term sustainable business and continue to provide our unique multi-category offering to our customers. This deal will allow us to strengthen our presence in those markets where we are already very strong, while also allowing us to invest in new markets where we see huge growth potential and opportunity.
“We truly believe that Delivery Hero is the best possible partner to take the business we’ve built in Latin America to the next level. They have everything it takes to go on and become the leading player in the region.”
The deal, which is subject to the meeting of preceding conditions and relevant regulatory approvals, is expected to be completed within the next few weeks.