Delivery | Spain

Delivery Hero acquires majority stake in Glovo

Founded in Barcelona in 2015, delivery app Glovo reportedly has a presence in more than 1,300 cities in 25 countries across Europe, Central Asia and Africa.
IMAGO / Arnulf Hettrich
Founded in Barcelona in 2015, delivery app Glovo reportedly has a presence in more than 1,300 cities in 25 countries across Europe, Central Asia and Africa.

Delivery service Delivery Hero wants to expand its influence and acquire a majority stake in Spanish rival Glovo. To this end, an agreement has been signed with a number of Glovo shareholders to acquire additional shares amounting to 39.4 percent in exchange for Delivery Hero shares, the group announced shortly before the turn of the year. According to the information, the shareholding will thus increase to more than 80 percent.

The 7.9 million Delivery Hero shares offered in exchange are worth just under 790 million euros, based on Monday morning's share price. Glovo will be valued at 2.3 billion euros in the course of the transaction, the announcement on New Year's Eve had said.
 
On the first trading day of the year, the Berlin-based company's shares, which are listed on the Dax, initially suffered somewhat from the planned takeover, but then rose by almost two percent to almost 100 euros. This made up for some of the previous year's losses - with a drop of just under 23 percent, the shares were among the weakest stocks in the leading German index in 2021.
 
The deal is still subject to approval by the authorities in several countries. If they give the green light, Delivery Hero hopes to close the deal by June 2022 at the latest. Delivery Hero has held shares in Glovo for years. Most recently, the group owned just under 44 percent of the shares.
 
The acquisition is not a surprise, but the urgency of the announced transaction is, analyst Giles Thorne wrote in a research note presented Monday. He said this suggests that the "endgame" of consolidation in the meal delivery industry has begun.
 
Founded in Barcelona in 2015, delivery app Glovo reportedly has a presence in more than 1,300 cities in 25 countries across Europe, Central Asia and Africa, and delivered 36 million orders and posted revenue of 151 million euros in the third quarter.
 
Just like the Foodpanda brand, which was relaunched in Germany shortly before Christmas, Glovo offers not only the mediation and delivery of restaurant orders, but also delivers everyday goods such as groceries and drugstore items.
 
Unlike its other markets, however, such as Southeast Asia, Foodpanda was hardly successful in Germany: after just a few months, Delivery Hero CEO Niklas Östberg pulled the plug. He justified this by saying that the environment in the German market had "changed significantly." For example, the number of providers had increased sharply and there had been a shortage of drivers. Foodpanda is also coming to an end in Japan: the business is to be sold in the first quarter of 2022.
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