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The new year isn’t even a month old and the food delivery crunch is already taking big bites. Spain’s Glovo has today announced it’s exiting four markets — which it says is part of a goal of pushing for profitability by 2021.
Also today, Uber confirmed rumors late last year by announcing it’s offloading its Indian Eats business to local rival Zomato — which will see it take a 9.99% stake in the Indian startup.
News - Latin - America - Delivery - App
In other recent news Latin America focused on-demand delivery app Rappi announced 6% staff layoffs.
On-demand food delivery apps may be great at filling the bellies of hungry consumers fast but startups in this space have yet to figure out how to deliver push-button convenience without haemorrhaging money at scale.
Question - Investors - Model
So the question even some investors are asking is how they can make their model profitable?
The four markets Glovo is leaving are Turkey, Egypt, Uruguay and Puerto Rico.
Exits - App - Footprint - Markets - Focus
The exits mean its app footprint is shrinking to 22 markets, still with a focus on South America, South West Europe, and Eastern Europe and Africa.
Commenting on the exits in a statement, Glovo co-founder and CEO, Oscar Pierre, 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.”
Month - Pierre - Middle - East - Glovo
Last month Pierre told us the Middle East looks too competitive for Glovo to expand further.
In the event it’s opted for a full exit — given both Egypt and Turkey are being dropped (despite the latter being touted as one of Glovo’s fastest growing markets just over a year ago, at the time of its Series D).
Markets - Leadership
“Leaving these four markets will help us to further strengthen our leadership...
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