Glovo is a pioneering Spanish tech company and one of the leading multi-category players in the world. The company’s core technology is used to create innovative solutions that connect customers, businesses and couriers. Its vision is to ‘give everyone easy access’ to anything they need in their city.
The company has been operating in Georgia for over three years and is about to launch an innovative program that will help small businesses who are struggling with their delivery operations implement new technologies so they can become more agile online. GEORGIA NOW spoke to Sacha Michaud, the co-founder, for more information.
If we look back 20 years ago, before the internet became popular, restaurants would accept orders remotely. You would call and order pizza, and then they would say “in 20 mins you can pick it up.” Sometimes they would send a delivery person on a motorcycle to bring it to you. This kind of exchange has happened for many years. The delivery business of restaurants was only a small percentage, maybe 1, 2, 3, or 4%. “Then came the internet, and companies began building websites and uploading content. Customers started ordering online,” Michaud explains.
In turn, the customer experience improved due to better UX and nice photos. In response, the demand for deliveries increased and customer behavior changed. Glovo was launched at that time and customers were able to find not only a listing of stores and restaurants, but also a list with the products they could purchase. “If the courier is visible in the city it is more or a less guaranteed that 99% orders will work well. So the user experience is much improved.” Michaud explains that this makes the business side grow even faster.
He said that the Coronavirus has caused a change in the demand for delivery service. Many restaurants were forced to close due to the virus. They suddenly found that a large part of their business was digital, but lacked the tools to manage this and were struggling with delivery operations. “It made me realize that digital business grew much faster than retail.” Michaud says, “Let’s give our partners tools to run their business and let them choose what tools they want. With our help, they might sell products on their website.”
Does Glovo intend to help these businesses create their own website?
It’s a great chance for businesses to get marketing tools that will help them grow their business digitally. This is not just through Glovo but also outside of it. We can provide couriers to help deliver their products. Our partners can now offer a wide range of products and be more flexible, transparent, and clear about commissions. We charge a fee, that’s what we do. We’ll offer them packages that allow them to choose different tools and pay a different level of commission. They will be transparent on the website.
Glovo plans to expand into more areas?
In general, we expand into a new country by starting in the largest city. We’ll figure it out, we’ll learn the local dynamics. Every country and region is different. Different cultures, different languages, different ecosystems, hilly, flat. We start the business in the largest city and then gradually expand to the next biggest cities. We are now in ten cities across Georgia, where the population is highest. We have to be very careful with the logistics of our business because some parts of Tbilisi are not densely populated. It’s important to give our delivery drivers as many orders per hour as possible so that their earnings per hour will be good. We don’t want a courier to be in a small village and have no orders. It’s still a good point, because Glovo Local allows a restaurant or shop in a small town to build a website. It doesn’t require our logistics to sell online. They can do their own logistics, and they don’t need Glovo App in their village or city at that time. We still consider expanding to smaller areas, but first we need to get the dynamics correct. Otherwise, operations are not very successful. We are giving our customers a bad service and our partners are not selling enough. We must get it right for everyone to benefit.
Glovo will therefore have small local companies in Georgia to help businesses build their own websites. It’s a win for both parties: If Glovo provides the tools for businesses to sell their products via the website, it will charge a lower commission. It is mainly for locals that don’t have access to the Glovo App.
“We give away a lot of technology for free, and then we charge a small commission based on the transactions. If our software and technology is useful and sells, we will charge a small fee. Our business is run in this way. So, if a restaurant wants to create its own website, they can do so, and then implement transactions through Glovo. They just plug it in, and it’s free,” Michaud explains, adding that “our success is our partners success.” Glovo would not exist without a restaurant. Glovo will benefit if the restaurant is a success.
He emphasizes that, at this stage of the program, they are launching it in cities for partners already on the Glovo Platform.
“We are a business and not an NGO. We charge a commission for the different tools, and offer packages that our partners can easily understand. We will give the tools to other partners who want to sell online in places where Glovo App does not operate. I don’t know the dates, it depends on many things and the tech team. Glovo App membership is free. Sign up any partner and we will charge a commission for every sale. It’s a win-win situation. Again, I think that the most important aspect is that it is geared towards small businesses. Glovo Local isn’t for large corporations who already have many tools. Glovo Local provides small businesses with easy access to digital solutions that are tailored for local businesses and restaurants.
Glovo Local.
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