Glovo, the largest player in the delivery application market in Croatia, has opened its own store, reports Jutarnji List.
Namely, Glovo Express is a store that is not intended for end customers but Glovo suppliers and works 0-24h every day of the year. The concept of the new Glovo store is called the Micro Fulfilment Center, which means that it is a micro-logistics facility that speeds up delivery. If compared to hitherto known businesses, Glovo Express would be a cross between a post office, a local store, and a micro warehouse.
Victor Răcariu, Glovo’s CEO for Southeast Europe, says he will open another store in Croatia by the end of the year.
“The launch of Glovo Express on the Croatian market and the transition to a new, higher level of delivery on demand is a key moment for us, but also a positive impact in the interest of our customers,” says Răcariu.
He explains that they can strengthen the business with the delivery of goods sold by retail chains. Of course, this primarily applies to perishable consumer goods such as vegetables, fruits, frozen and dairy products. But it also opens up space for faster delivery of all other products that citizens buy in retail chains, such as beverages, sweets, and products for children and animals.
Bojan Barišić, head of Glovo Express stores for Bosnia and Herzegovina, Croatia, Montenegro, and Serbia, says that he will expand the delivery offer in Zagreb by 1,500 products.
“Further expansion of the Glovo Express store network is planned for next year,” says Barišić.
Although the pandemic led to an explosion of delivery on demand (Quick commerce), this trend continued this year. Therefore, in 2021, companies from online commerce, postal delivery, and mobile delivery applications (Q-commerce) in Croatia have started to strengthen their logistics infrastructure to make their businesses more sustainable and prepare them for further online sales, which is supposed to have the potential to double in a short period.
Croatian Post, DPD, and the largest online retailer eKupi already have their parcel machines and expand their network.
“This year, Glovo signed a strategic agreement with the Swiss real estate company Stoneweg, in which it undertook to invest 100 million euros in the construction and renovation of real estate in the capitals of key markets in which it operates,” says Barišić.
He explains that Glovo can connect a more significant number of sales partners to the application by strengthening its delivery infrastructure.
“Glovo Express is a response to changes in consumer behavior and demands for ultra-fast delivery. Micro Fulfilment Centers are the future of commerce, and we expect them to impact lasting changes in consumer habits. It is a step towards immediate or delivery on the same day,” says Barišić.
A year ago, Glovo positioned itself as the largest player in the industry of mobile delivery applications. Last year, according to Fina, the company had a revenue of HRK 48.9 million. But it’s also the fastest way to fry cash. As a result, it ended in 2020 with a loss of HRK 21.8 million. The other two competitors, Wolt and Bolt, lag significantly behind in revenue but are profitable, albeit with very low amounts.
By the end of the year, it plans to open more than a hundred Glovo Express stores in 50 cities in 16 states. In addition to Croatia, it is opening its Micro Fulfillment Centers in Slovenia, Serbia, Bulgaria, Spain, Italy, Ukraine, Kenya, and Morocco.
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