Spain-based Glovo, a company specializing in on-demand delivery services, has revealed a new strategic alliance with Stoneweg, a real estate company headquartered in Switzerland.

This collaboration involves Stoneweg investing €100 million in the acquisition and renovation of “high-quality urban properties” within Glovo’s primary operating areas, as the delivery service expands its network of dark stores and integrates additional retail partners into its city delivery system, the company announced today.

The initial phase of this partnership will concentrate on expanding Glovo’s dark store network in Spain, Italy, Portugal, and Romania, with further European countries currently being evaluated for inclusion.

According to a Glovo representative, “These nations represent key markets for both Glovo and Stoneweg, enabling a faster implementation process.” She further clarified that the agreement extends beyond these initial countries, as Glovo intends to develop and enhance its Q-Commerce and dark kitchen infrastructure throughout Eastern Europe as well.

Glovo presently manages 18 dark stores worldwide, located in cities such as Barcelona, Madrid, Lisbon, and Milan, and is planning to introduce similar facilities in Valencia, Rome, Porto, and Bucharest, among others.

The company aims to have a total of 100 dark stores operational by the close of 2021.

In September of last year, the company completed the sale of its Latin American operations to Delivery Hero, a competitor focused on food delivery, for $272 million, allowing it to concentrate more fully on Southern and Eastern Europe.

Subsequently, in November, Glovo launched a dedicated division to support the growth of its sub-30-minute urban delivery service, branded as “Q-Commerce” (with “Q” signifying quickness) – and stated it would accelerate the development of a B2B service to stock products from third parties in its city center warehouses, delivering them to customers through its network of independent couriers.

Glovo stated today that the partnership with Stoneweg will accelerate the development of the infrastructure and fulfillment centers necessary to support this B2B offering.

The “deliver anything” app recognizes an opportunity to benefit from the changes brought about by the coronavirus pandemic to traditional brick-and-mortar retail, anticipating that urban consumers will increasingly choose to outsource grocery and other essential shopping to an application offering rapid delivery, rather than making these trips themselves.

The increased emphasis on Q-Commerce is a direct response to “evolving consumer preferences and the demand for immediate and same-day delivery,” the company added.

To date, Glovo’s platform has facilitated over 12 million multi-category orders globally, and the company experienced a growth rate exceeding 300% year-over-year in 2020.

Glovo’s retail partners include major supermarkets like Carrefour, Continente, and Kaufland, as well as prominent brands such as Unilever, Nestle, L’Oréal, and IKEA, demonstrating its reach beyond just groceries.

The company intends for Q-Commerce to facilitate the delivery of a diverse range of products – including toys, music, books, flowers, beauty products, pharmacy items, and groceries, and even a curated selection of smaller IKEA products that can fit within couriers’ backpacks.

Oscar Pierre, co-founder and CEO, commented in a statement: “We are confident that the third generation of commerce is now here. With Stoneweg’s investment finalized, we are reinforcing our strategic commitment to Q-Commerce, which will enable us to better connect individuals with a wide variety of products available in their cities.”

“In the context of COVID-19, we believe that dark stores represent the future of retail in a post-pandemic world, and we anticipate a lasting change in consumer behavior towards same-day and instant delivery. We are eager to continue expanding our services, allowing businesses of all sizes, from local independent stores to multinational corporations, to reach a wider customer base through innovative technologies and efficient infrastructure.”

Joaquín Castellví, founding partner and head of acquisitions for Europe at Stoneweg, added in a supporting statement that the strategic investment presents “an opportunity to provide our clients with diversification into a new type of retail asset within key cities where Glovo operates – a segment with significant growth potential, accelerated by the current circumstances.”

Glovo’s efforts to generate revenue from a broad spectrum of urban retail occur during a period of consolidation within the competitive food delivery sector, where profit margins are often slim.

The company is also facing legal challenges in Europe regarding the employment status of its couriers, having lost a recent supreme court ruling in its home market last September.

Spanish authorities are currently developing a new regulatory framework for delivery apps, and Glovo has stated it is awaiting these reforms before implementing any changes, with much depending on the specifics of the new regulations.

Deliveroo, a UK-based competitor, also recently lost a legal case in Spain concerning the classification of its couriers. A court in Barcelona determined last week that the company had incorrectly classified 748 riders as self-employed, following a workplace inspection in 2018.

The delivery platform, which competes with Glovo in the on-demand food and grocery market, announced on Sunday the completion of a Series H funding round, raising over $180 million from existing investors, led by Durable Capital Partners LP and Fidelity Management & Research Company LLC, which valued the business at more than $7 billion.

The investment will allow Deliveroo to continue investing in “developing the best service for consumers, riders, and restaurants,” the company said, and will support expansion in on-demand grocery following “significant” growth over the past year.

Deliveroo added that the Series H investment precedes a “potential” IPO and reflects “strong demand from existing shareholders to invest in the company, given the substantial growth potential in the online food delivery sector, where consumer adoption is accelerating.”