They kept it very secret, but Glovo's new Madrid project has been around for a few weeks. At the moment, it's a pretty hidden option in the application, but the idea is to become one of the new business models for technology. In order to compete with all parts of the sector, this system can be one of the most profitable for Glovo.
"Super Glovo", which is how the new project led by Óscar Pierre has been called, has the call to be super 24 hours a day and 7 days a week in the company. Currently there is only one place in Madrid, but the idea is to open at least four. Tetuan's neighborhood welcomes 200 meters away dark shop with the basic products from a daily business. In the long term, says the founder, there is the thought of being able to handle the weekly purchase of the users. This would require a change of base: the distributors themselves. While it is true that a daily purchase has a seat in the backpack riderThe same thing does not happen with a weekly purchase. In this regard, Pierre says They study the options between which rent by distributors is considered by lorries or hiring self-employed with these transport models.
Glovo has placed its first in Tetouan dark shop
Between 8 and 10 employees in each store, which can handle all orders of less than 30, will be commissioned to compete the segment of super 24 hours. In this way, Glovo kills two birds with a rock: on the one hand, it would eliminate the problem of fate hours. The technology, although it offers all kinds of messages at any time, is still very sensitive to the meals. Maintaining activity throughout the day would provide greater capacity for scheduling of its fleet of rider. On the other hand, there would be savings in the intermediate processes. Glovo buys directly from suppliers and manages services from its own headquarters all decreases both during preparation and management money.
And next to this new release, It would also be Cook Room. Something like Deliveroo was launched in Madrid a few months ago and what Glovo has also wanted to go with. Kitchen, in different places in the cities, so that restaurants can deliver their customers beyond their influence. So far, they explain that they only have facilities in Madrid, Barcelona and Chile, but the idea is to continue growing in all markets.
Spain is almost profitable, but Glovo has to lower income forecasts by the end of 2018.
17 million euros in revenues in 2017, of which 14.2 correspond to Spain with losses of 9 million euros (5.2 million in Spain) with these figures, Glovo closed 2017. An economic situation that left them far from break evenly. And at present, and with a financing round of 115 million last summer, technology continues with a loss.
By 2018, Glovo has in mind a 300 million euro transaction and 80 billing -20 less than they spoke a few months ago-. In terms of losses, the technology has not provided forecasts. The reason for this fall in the numbers? Oscar Pierre explains that they did not take into account the seasonality. The summer was not as good as you could expect: Glovo works best when it's cold. On the other hand, although growth in Latin America has become progressive, the average order price is less than ticket In Spain, 60% lower specifically, with which revenue is lower. And even considering that 1/3 of the invoice is still in Spain, the accounts have been hit.
After all, Glovo wants to reach 300 engineers since 2019; Right now, he only has 60, focuses his investment on his two new services and expands the fleet of delivery drivers to 70,000. However, according to Pierre, "the goal is to achieve break evenly in 18 months. "
The situation of rider It's still a complicated question. "We have an unclear regulatory environment," Pierre explained, "there are no future proposals for new employment models."
Glovo has a job control to his advantage, but an ongoing case in Zaragoza. The same does not happen with the case-law created at the expense of Deliveroo. It is not clear what the future of these business models is, but a judgment by the Supreme Court against the system for rider would jeopardize the business models of these companies. If from Deliveroo and confirmed that it would be the beginning of the end, Glovo had some slightly lukewarm mode. "It would be a failure, but we would have to adapt," Pierre has argued. Without resolving how the company could manage to employ nearly 70,000 retailers, it acknowledges that the company's focus would leave Spain to go to its other geographic areas.
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