Barcelona-based on-demand logistics platform Glovo expands further into the South American market, this time setting up operations in Brazil.
The Spanish startup lands in its fourth Latin American market after having started operations in Chile, Peru and Argentina. The company will deliver local gastronomic products, among other services, Kippel01 reported on Tuesday.
Glovo will now have operations in Sao Paulo and Rio de Janeiro to offer distribution for local bars and restaurants, as well as products from florists, electronics, pharmacies and neighborhood markets.
“We are very happy with the expansion that Glovo is experiencing both nationally and internationally,” said Oscar Pierre, Founder and CEO of Glovo.
Since its inception, Glovo was already confident that it had found a model that would be scalable and predicted its own growth almost three years back.
In a 2015 interview with Novobrief Founder Jaime Novoa, Glovo Co-Founder Sacha Michaud said, “We firmly believe this is a scalable and profitable model in the long run. We don’t think the majority of our income will come from the delivery fees; don’t get me wrong, these fees are important to cover business needs, pay glovers and build a healthy marketplace, but our intention is to work with premium partners and make most of our income there.”
“If you think about, in a way we’re already indirectly working with more than 1,000 retail stores when we send our glovers to pick up stuff there. But, until very recently we haven’t held talks with these stores, we haven’t had a formal relationship with them. This is the next step in our growth, to talk and establish partnerships with them. We think we can both benefit from each other,” added Michaud.
And partner they did.
Shortly after that interview, Glovo went on to raise €2 million in funding. They partnered and expanded throughout Spain before taking on South America, working with more than 3,000 businesses worldwide.
The “reception in Chile, Peru and Argentina” has been key in the decision to expand to Brazil, which, according to Pierre, “has allowed us to continue betting on the Latin American continent.”
With these two new cities in Brazil, Glovo currently operates in a total of 31 cities in nine countries including Spain, France, Italy, Peru, Argentina, Brazil, Bolivia, Portugal, and Chile.
Next on the agenda for Glovo’s international operations is Istanbul, Turkey, according to Kippel01.