Spain-based delivery service Glovo is preparing to significantly broaden its product delivery capabilities with a target delivery time of 30 minutes. This expansion is driven by a new business-to-business (B2B) logistics strategy, utilizing a growing network of centrally located warehouses.

The company has recently announced the creation of a new division, Q-Commerce – with “Q” representing quickness – to accelerate the development of its B2B services. This will involve providing storage space for third-party products within its warehouse network and utilizing its existing courier fleet to handle deliveries for other businesses, offering a comprehensive logistics solution designed to support businesses of all sizes in establishing and maintaining their online presence. 

Glovo is currently collaborating with major retail brands such as Unilever, Nestle, and L’Oréal, as well as supermarket chains including Walmart, Carrefour, and Kaufland, to stock and sell their products from its network of “dark stores.” These facilities are presently situated in Barcelona, Madrid, Lisbon, and Milan, enabling rapid delivery of select groceries and other goods to consumers through the “Glovo Market” service (which currently features free 24-hour delivery with no minimum purchase requirement). The company intends to broaden its reach, extending the Glovo Market service to additional cities and launching its B2B offering to facilitate other companies’ online operations, with plans to operate over 100 dark stores by the close of 2021.

In a released statement, Daniel Alonso, Glovo’s global director of Q-Commerce – and formerly e-commerce director at Walmart – explained: “As traditional stores close and lockdowns become widespread, consumers increasingly desire and anticipate a greater variety of items delivered directly to their homes. This shift has created new expectations – a delivery timeframe of 24-48 hours is no longer sufficient, with consumers now expecting delivery within minutes. Glovo is dedicated to providing delivery in 30 minutes or less for all products available through Q-Commerce. As we continue to enhance our services, we are excited to introduce Q-Commerce to other regions of Spain, as well as throughout Europe, Eastern Europe, and Africa over the next 12 months.”

Glovo envisions Q-Commerce facilitating the delivery of a diverse range of products, extending beyond restaurant meals and supermarket groceries to include items sold in toy stores, music shops, bookstores, flower shops, beauty retailers, and pharmacies.

However, certain product categories are not included in this plan. Clothing and shoe stores, for instance, typically have established online shopping systems. Furthermore, apparel shopping presents unique challenges due to the potential for returns related to sizing or suitability. Nevertheless, Glovo is targeting the delivery of almost all other available goods.

Alonso stated that Glovo currently operates 22 dark stores. He shared with TechCrunch, “Frequently requested items include fresh produce, beverages, flowers, personal care products, household supplies, pet food, and popular brands from companies like Unilever, Nestlé, and P&G.”

“Within Glovo Supermarket, we currently offer approximately 2,000 unique items, though this number varies depending on the specific dark store, population density, and geographical location.”

Glovo reports that its Glovo Market service has over 50,000 active users, processing around two orders per minute. The company has also completed over 12 million “multi-category” orders globally to date, with grocery orders in Spain doubling this year to exceed 1 million. Overall growth in 2019 surpassed 300% year-over-year, the company added.

While traditionally known as a “deliver everything” app – offering users the ability to request almost any item (within reasonable delivery distance) – Glovo’s core business has largely revolved around fast food delivery.

At the beginning of this year, meal deliveries accounted for three-quarters of its revenue. However, Glovo aims to surpass Amazon in the urban convenience market by providing exceptionally fast delivery of a wide variety of products. Investors are supporting this strategy, as evidenced by the $169 million Series D and $166 million Series E funding rounds secured last year.

The company has further strengthened its financial position this year by divesting its Latin American operations, selling them to European competitor Delivery Hero for $272 million – allowing it to concentrate its efforts on Southern and Eastern Europe (with a limited presence in sub-Saharan Africa, specifically Kenya and Ivory Coast).

This strategic shift aligns with the company’s “get stuff now” convenience initiative, supported by its network of city center warehouses (dark stores). The decision to exit the Latin American market may also be linked to the pursuit of profitability, as intense competition in that region may have hindered progress.

Glovo currently has more than 9 million monthly active users and 55,000 “associated partners” globally – referring to the independent contractors who fulfill deliveries on its platform.

The startup is currently facing legal challenges in its home market regarding the employment status of its couriers, known as “glovers.” A recent Spanish supreme court ruling determined that a courier was in an employment relationship with the platform, and any requirement to reclassify its thousands of couriers in Spain would significantly impact its profitability.

This report has been updated with additional comment