Delivery Hero has acquired the Latin American operations of Delivery Motive Force Glovo for a maximum of 230 million euros ($272 million).
The agreement is expected to be concluded in the coming weeks and includes a performance-based value surcharge of EUR 60 million.
Glovo, based in Barcelona, was founded in 2015 and has raised more than $510 million from investors and has one of the leading players in the distribution of food online, operating in dozens of markets around the world, adding several countries in Central and South America. Other facilities offered at the property include grocery deliveries and courier service.
The agreement will allow the German Delivery Hero to resume Glovo’s operations in Argentina, Peru, Ecuador, Panama, Costa Rica, Honduras, Guatemala and the Dominican Republic, and the Delivery Hero is carried out in 3 of those countries.
While Glovo competes with Delivery Hero, the German company already had a stake in Glovo prior to this acquisition.
Delivery Hero CEO Niklas’sberg said Latin America was a market with the greatest expanding potential, but that it was also incredibly competitive with Uber and Rappi, subsidized through Softbank, which is very active in many countries, also has a stake in the latter.
“Acquiring Glovo’s local operations gives us the opportunity to redouble our efforts to drive innovation, frequently improve visitor pleasure and help local suppliers in the region,” said ‘Stberg’. “We have been working intensively with Glovo for many years and are proud to integrate its Latin American facilities into our global network. “
Glovo’s general manager, Oscar Pierre, added that the sale of the Latin American business will allow Glovo to “strengthen our presence” in other markets.
“It is vital for us to focus on key markets where we can build a sustainable long-term business and continue to provide our exclusive supply to our customers,” Pierre said.
In an earlier interview, Pierre said the company is fleeing some under-performance markets, which at the time included departures to Uruguay and Puerto Rico.
For Delivery Hero, the agreement is a strategic resolution that expects its position in some other market. Announcing his latest quarterly results, he said he was on track to succeed in Europe this year.
The company, which joined Germany’s Dax Index, expects to generate profits of 2. 8 billion euros ($3. 3 billion) by 2020.
I am an autonomous journalist founded in Dublin and I cover many spaces of the industry of the generation, I used to be a reporter in Fora and a regular contributor to
I am an autonomous journalist founded in Dublin and I cover many spaces of the generation industry. He used to be a journalist in Fora and a regular Tech. eu. My firm also gave the impression on BBC News, Vice and Mashable.