Glovo has “an ambitious vision for the future of e-groceries in Europe”
Glovo has reached an agreement to acquire grocery delivery companies Lola Market and Mercadão.
Both Lola Market and Mercadão are on-demand delivery platforms that connect supermarkets, traditional markets and local independent stores with customers. Lola Market operates in Spain while Mercadão is exclusive to Portugal, however, between them, the two companies have a portfolio of over 30 partners across the two countries.
The acquisitions of both Lola Market and Mercadão complement Glovo’s growth strategy and further strengthen its Q-Commerce division following its recent acquisitions of Delivery Hero’s businesses in Eastern Europe and its €100M partnership with Swiss-based real estate firm, Stoneweg. By integrating two new marketplaces into its own portfolio, Glovo continues to position itself as the primary on-demand partner for retailers of all sizes.
Glovo believes that changing consumer habits are redefining the delivery industry, and this deal is a reflection of that change, enabling Glovo to cover the main three purchasing occasions for groceries consumers: emergency essentials, fast-access convenience and planned purchases (larger basket orders).
Following the acquisitions, Glovo will strengthen its competitive position in Europe in key markets. The company’s Q-Commerce division is on track to reach an annual Gross Transaction Value (GTV) of more than €300M this year and expects that to more than triple by the end of 2022, surpassing a run rate of €1bn.
Both brands will retain their respective identities and operate independently of Glovo; they will also fall under the leadership of Gonçalo Soares da Costa, CEO of Mercadão. The aim will be to replicate both Mercadão’s and Lola Market’s success in all the countries in which Glovo operates, initially expanding in Poland and Italy.
Oscar Pierre, CEO and co-founder of Glovo, said: “We see huge potential in the on-demand groceries marketplace and both companies are strong local players in their respective markets, and further strengthen our Q-Commerce offering. With Lola Market and Mercadão on board, we can build stronger partnerships with retailers, offer our users big-basket purchases and provide a more complete service. These acquisitions represent a significant step forward for us, as we’re now able to cover all of the main purchasing considerations for groceries customers, making Glovo a one-stop-shop for e-groceries.”
Gonçalo Soares da Costa, CEO of Mercadão, said: “Glovo has a very ambitious vision for the future of e-groceries in Europe and it’s one of which we are excited to be a part. We believe that the combined experience and talent of both Mercadão’s and Lola Market’s teams, coupled with Glovo’s international reach, will allow us to offer a truly unrivalled delivery service to customers. It’s a challenge we look forward to facing and one we are undertaking with enthusiasm and determination.”
Luis Perez del Val Sheriff, CEO of Lola Market, said: “We are very proud to be joining Glovo and Mercadão, and we believe that together we are offering users the very best groceries delivery experience in Europe. Our expertise in planned purchases and big basket deliveries, as well as our loyal user base and cutting-edge technology, make for a very attractive proposition. We’re confident that together we can continue to make ordering food more accessible and convenient for users than ever before.”
