Glovo’s Rise: Business Model, SWOT, and Future Strategy
Glovo: A Spanish Startup’s On-Demand Revolution
Imagine you’re at home, craving your favorite meal, needing groceries, or perhaps a last-minute gift. What if you could have it all delivered to your doorstep in under an hour? That’s the convenience Glovo offers. It’s not just a food delivery app but a comprehensive on-demand lifestyle platform.
This analysis covers how Glovo operates, the problems it addresses, its business model, and the challenges and opportunities it faces.
The Market Gap in Urban Delivery
Urban life is fast-paced. People often lack the time to shop, cook, or run errands. Traditional delivery services were limited and unreliable, creating a clear market gap for a fast, flexible, and multi-purpose delivery solution.
The “Get-Anything” Platform Solution
Founded in Barcelona in 2015 by Oscar Pierre and Sacha Michaud, Glovo set out to revolutionize urban delivery. Through its app, users can order anything—from meals and groceries to pharmacy items and electronics. Couriers, known as Glovers, deliver these orders swiftly, often within 30 minutes.
Unlike competitors focusing solely on food, Glovo positioned itself as a “get-anything” platform, expanding its appeal across Europe, Africa, and Latin America. As of 2024, Glovo operates in over 25 countries, partners with more than 170,000 businesses, and serves over 10 million users.
Tapping into a Booming Market
The demand for convenience is booming. The global on-demand delivery market is projected to surpass €215 billion by 2027. In Spain, where Glovo holds a 41% market share, the online food delivery market alone is expected to reach €8.94 billion by 2025.
Glovo’s strategic expansion into non-English-speaking and emerging markets like Romania, Morocco, and Kenya has given it a significant edge over global competitors.
The Glovo Ecosystem Stakeholders
Glovo’s ecosystem serves multiple stakeholders:
- Customers: Benefit from speed, convenience, and variety.
- Glovers: Earn flexible income, though they face challenges regarding working conditions.
- Partner Businesses: Restaurants and supermarkets gain access to a broader customer base and increased visibility.
- Investors and Regulators: Monitor Glovo’s financial performance and compliance with labor laws.
Glovo’s platform thrives on network effects—the more users and partners it has, the more efficient and valuable the service becomes for everyone.
Glovo’s Multi-Faceted Business Model
Glovo’s business model includes multiple revenue streams:
- Delivery Fees: Paid directly by customers.
- Partner Commissions: Typically around 22%–30% per order.
- Subscriptions: Services like Glovo Prime offer users free delivery for a monthly fee.
- Q-Commerce: Utilizes dark stores and ghost kitchens to expedite grocery and meal deliveries.
Since Delivery Hero acquired a majority stake in Glovo in 2022, the company has scaled operations while maintaining its brand and strategy. In 2023, Glovo earned over €500 million, though it remains unprofitable due to high logistics and expansion costs.
Navigating Challenges and Regulatory Hurdles
Glovo faces several significant challenges, highlighted by a SWOT analysis:
- Strengths: Speed, strong brand recognition, and a flexible business model.
- Weaknesses: High operational costs and significant regulatory risks.
- Opportunities: Growth in quick-commerce (Q-commerce), dark stores, and expansion into emerging markets.
- Threats: Legal challenges and lawsuits related to labor practices.
Regulatory Scrutiny and Labor Law Violations
The threats are particularly potent. By 2024, Glovo faced over €79 million in fines for misclassifying its riders as independent contractors, violating Spain’s “Riders Law” introduced in 2021. However, the company adapted; in late 2024, Glovo announced a shift to an employment-based model for its couriers in Spain—a significant operational change.
Further reputational risks emerged in early 2025 when Glovo was fined by the Catalan government for allegedly including discriminatory questions in its rider recruitment process. These challenges reflect the growing regulatory pressure on gig-economy platforms.
Strategic Opportunities for Future Growth
Despite these hurdles, Glovo continues to innovate and pursue growth:
- Q-Commerce Expansion: Focusing on building dark stores and ghost kitchens for faster deliveries.
- Sustainability Initiatives: Launching programs like The Impact Fund to support communities and the environment.
- Emerging Markets: Expanding into regions with growing demand and less competition.
- Technology and AI: Leveraging AI and data analytics to optimize routes, predict demand, and reduce idle time for Glovers.
These strategies demonstrate Glovo’s commitment to evolving and adapting in a dynamic market.
Conclusion: The Future of Urban Convenience
What makes Glovo stand out is its ability to recognize the chaos of modern urban life and transform it into a scalable, tech-driven business model. While facing real challenges—from labor laws to profitability—Glovo’s adaptability and focus on speed, variety, and local markets position it as a dynamic player in the global delivery space.
Glovo isn’t just delivering food; it’s delivering the future of urban convenience.