{"id":5992,"date":"2021-03-12T23:38:57","date_gmt":"2021-03-12T18:08:57","guid":{"rendered":"https:\/\/www.ncrypted.net\/blog\/?p=5992"},"modified":"2025-07-28T12:40:46","modified_gmt":"2025-07-28T07:10:46","slug":"how-does-glovo-work","status":"publish","type":"post","link":"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/","title":{"rendered":"How does Glovo work: Insights into the Glovo business model"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"515\" height=\"330\" src=\"https:\/\/www.ncrypted.net\/blog\/wp-content\/uploads\/2021\/03\/how-does-glovo-work-blog-img-515x330.jpg\" alt=\"How does Glovo Work?\" class=\"wp-image-5993\" srcset=\"https:\/\/www.ncrypted.net\/blog\/wp-content\/uploads\/2021\/03\/how-does-glovo-work-blog-img-515x330.jpg 515w, https:\/\/www.ncrypted.net\/blog\/wp-content\/uploads\/2021\/03\/how-does-glovo-work-blog-img-300x192.jpg 300w, https:\/\/www.ncrypted.net\/blog\/wp-content\/uploads\/2021\/03\/how-does-glovo-work-blog-img-768x492.jpg 768w, https:\/\/www.ncrypted.net\/blog\/wp-content\/uploads\/2021\/03\/how-does-glovo-work-blog-img.jpg 780w\" sizes=\"auto, (max-width: 515px) 100vw, 515px\" \/><\/figure><\/div>\n\n\n\n<p><a href=\"https:\/\/www.ncrypted.net\/food-sharing-on-demand-app-development\">Food delivery startups<\/a> have experienced a huge boom in the last few months. They were already very popular but the COVID pandemic restrictions led to the fast growth of these startups. Many food delivery startups are working globally but this article will unveil the business model of a fast-growing food delivery startup- Glovo, which gained huge demand in just 5 years. This article will share the company\u2019s basic know-how and provide answers to \u201cHow does Glovo work?\u201d and \u201cHow does Glovo make money?\u201d.<\/p>\n\n\n\n<p>Glovo, a Spanish start-up company, was founded by Oscar Pierre and Sacha Michaud in 2015. The company offers on-demand delivery services in 21 countries with 59K active couriers, 7.4M active customers, and approx. 1.9K (as per the data of the official website) employees. Its application meets the day to day needs of its consumers in a fast and affordable way. As per the latest news update of 10 Feb 2021, Glovo has appointed its new Chief Technology Offices, Narek Verdian. The company aims to enhance its marketing strategy with the help of technology which indicates its immense concern of strengthening the platform to provide a better experience to its customers.<\/p>\n\n\n\n<p>Let\u2019s\nunderstand the Glovo Business Model in detail and get our answers to, \u201cHow does\nGlovo work\u201d and \u201cHow does Glovo make money?\u201d. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">What you\u2019ll learn in this article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/#glovo-business-model\" >Glovo Business Model<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/#who-are-glovos-investors\" >Who are Glovo\u2019s investors?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/#how-does-glovo-work\" >How does Glovo work?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/#who-is-glovos-biggest-competition\" >Who is Glovo\u2019s biggest competition?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/#how-does-glovo-make-money\" >How does Glovo make Money?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.ncrypted.net\/blog\/how-does-glovo-work\/#glovos-potential-collaborators\" >Glovo\u2019s potential collaborators<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"glovo-business-model\"><\/span>Glovo Business Model<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>Glovo offers innovative <a href=\"https:\/\/www.ncrypted.net\/uber-for-x-script\">on-demand services<\/a> to buy, pick up or receive any product in not more than sixty minutes. The delivery of the orders placed by the customers is done by independent couriers. These independent couriers are given a special name- \u201cGlovers\u201d. As earlier mentioned, Glovo meets the daily needs of its customer in a fast and affordable way through different product categories such as restaurants, snacks, pharmacy products, gifts, markets, etc. After placing the order, the customer can easily track the<a href=\"https:\/\/www.ncrypted.net\/blog\/how-does-wolt-work\/\"> delivery in real-time <\/a>through the geolocation system embedded in the software.<\/p>\n\n\n\n<p>The\napp also works as a courier by offering the services of delivering items or any\nother document of the customer to their desired locations.<\/p>\n\n\n\n<p>Glovo\nfollows the concept of the shared economy, therefore, this platform provides\nbenefits to all its partners involved. Here are the three partners involved in\nthe business:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Physical Shops<\/li><\/ul>\n\n\n\n<p>By\njoining Glovo\u2019s partner network, shops (physical shops) can extend their\nnetwork to reach new clients and enhance sales.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>E-commerce businesses<\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.ncrypted.net\/blog\/how-does-ecommerce-work-insights-into-ecommerce-business-model-and-revenue-model-of-ecommerce-industry\/\">E-commerce<\/a> businesses can join Glovo\u2019s network to capitalize on its (Glovo\u2019s) express delivery services. They can enhance their sales by facilitating their delivery of products through Glovo.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Service Partners<\/li><\/ul>\n\n\n\n<p>Glovo has created various new employment opportunities for people looking for part-time or <a href=\"https:\/\/www.ncrypted.net\/blog\/why-freelancer-clone\/\">freelance <\/a>jobs. Even the employed ones can go for it if they want to earn extra outside their traditional jobs. This freelancing opportunity allows the employees to choose their agreeable time without any time limit restriction.<\/p>\n\n\n\n<p>These were the few insights into the \u201cGlovo Business Model\u201d. Keep reading to get in-depth information about the working and <a href=\"https:\/\/www.ncrypted.net\/blog\/top-7-revenue-and-business-models-for-internet-startups\/\">revenue model<\/a> of the company and get your answers to \u201cHow does Glovo work?\u201d and \u201cHow does Glovo make money?\u201d.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"who-are-glovos-investors\"><\/span>Who are Glovo\u2019s investors?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since\nthe time of its launch (in 2015), Glovo has successfully raised $634.5M of the\ntotal funding amount with four acquisitions and a total of 27 investors (as per\nthe reports of <a href=\"https:\/\/www.crunchbase.com\/organization\/glovo-app\" rel=\"nofollow noopener\" target=\"_blank\">crunchbase<\/a>). Not only did the company\nreceive investment from various popular investors such as Idinvest Partners,\nKorelya Capital, Drake Enterprise, The Drake Group, and much more, but also\nreceived huge investments from various lead investors such as Mubadala Capital,\nLakestar, Stoneweg, etc.<\/p>\n\n\n\n<p>Stoneweg\nand Korelya Capital are the most recent investors of Glovo. It\u2019s been a month\nsince the company received an investment of \u20ac100 million from the\nSwiss-based real estate firm, Stoneweg.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-does-glovo-work\"><\/span>How does Glovo work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Glovo is an on-demand delivery app that allows its user to order a wide variety of products and have them delivered at their doorway. The list of products is not just limited to the ones displayed on the app but varies as per the demands of the user. Customers can request a variety of products even if it\u2019s not present in the order list of the app. In that case, the order will be picked up from the desired location and also delivered at any desired place from any store in less than an hour.<\/p>\n\n\n\n<p>Since\nthe customer is the most important stakeholder of any successful business\nmodel, Glovo tries to give an easy and friendly experience to its customer.\nHere are the few steps that explain \u201cHow does Glovo work?\u201d or \u201cHow to place an\norder through Glovo app\/website?\u201d<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Download\/Visit<\/li><\/ol>\n\n\n\n<p>Firstly, the customer has to download the Glovo app from the play store\/ Appstore or one can visit the official website of Glovo.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Registration<\/li><\/ul>\n\n\n\n<p>The\nuser is required to create an account on the Glovo app. So, for this step,\nusers are required to register on their Glovo mobile app or the website via\ntheir email IDs, name, and password.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Manage payment<\/li><\/ul>\n\n\n\n<p>Now,\nthe user must go to the \u201cmanage payment methods\u201d section on the mobile app and\nadd his\/her preferred debit\/ credit card for the payment.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Set Address<\/li><\/ul>\n\n\n\n<p>After\nmanaging payment methods, the user will be required to back to the main page of\nthe app and add his\/her preferred delivery address.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Add to Cart<\/li><\/ul>\n\n\n\n<p>Buy\nthe desired items from any of the partner restaurants or stores through the\napp.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Order accepted<\/li><\/ul>\n\n\n\n<p>After\nplacing the order, the user will have to follow some more additional steps and\nonce it is done, a courier will accept the order and deliver it within an\naverage period of 28 mins.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Delivery<\/li><\/ul>\n\n\n\n<p>The\norder will be delivered in minutes and if the customer wants to track the\noption then he\/she can track and follow the delivery in real-time through an\nadditional feature of the Glovo app.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Rating<\/li><\/ul>\n\n\n\n<p>After\nreceiving the delivery, the customer must leave a rating of the experience and\nsend feedback.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"who-is-glovos-biggest-competition\"><\/span>Who is Glovo\u2019s biggest competition?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If we look at some of the top players that were founded in Europe in the span of the last 10 years, then, Glovo, <a href=\"https:\/\/www.ncrypted.net\/blog\/deliveroo-business-model\/\">Deliveroo<\/a>, and Delivery Hero are at the peak. There are many other start-ups also that might exceed them in the long run but at present, they are gaining huge popularity. With millions of customers, thousands of business partners, 30 thousand + employees, combined with billions of investments, these three startups have gained unicorn status and there\u2019s nothing to stop them from growing now. Below is a detailed table to showcase a basic comparison between the three.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>\n  Company name\n  <\/td><td>\n  <strong>Glovo<\/strong>\n  <\/td><td>\n  <strong>Deliveroo<\/strong>\n  <\/td><td>\n  <strong>Delivery\n  Hero<\/strong>\n  <\/td><\/tr><tr><td>\n  Date of found\n  <\/td><td>\n  2015\n  <\/td><td>\n  2012\n  <\/td><td>\n  2011\n  <\/td><\/tr><tr><td>\n  Headquarter Locations\n  <\/td><td>\n  Barcelona\n  <\/td><td>\n  London\n  <\/td><td>\n  Berlin\n  <\/td><\/tr><tr><td>\n  Average no. of employees\n  <\/td><td>\n  3805\n  <\/td><td>\n  5800\n  <\/td><td>\n  27,071\n  <\/td><\/tr><tr><td>\n  Unicorn status\n  <\/td><td>\n  Yes\n  <\/td><td>\n  Yes\n  <\/td><td>\n  Yes\n  <\/td><\/tr><tr><td>\n  No. of investors\n  <\/td><td>\n  27\n  <\/td><td>\n  28\n  <\/td><td>\n  18\n  <\/td><\/tr><tr><td>\n  N. of lead investors\n  <\/td><td>\n  5\n  <\/td><td>\n  11\n  <\/td><td>\n  8\n  <\/td><\/tr><tr><td>\n  Total funding amount\n  <\/td><td>\n  $634.5 Million\n  <\/td><td>\n  $1.7 Billion\n  <\/td><td>\n  $6.6 Billion\n  <\/td><\/tr><tr><td>\n  No. of the current team members\n  <\/td><td>\n  11\n  <\/td><td>\n  27\n  <\/td><td>\n  23\n  <\/td><\/tr><tr><td>\n  Countries present\n  <\/td><td>\n  21\n  <\/td><td>\n  13\n  <\/td><td>\n  40\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>[Ref:<a href=\"https:\/\/www.crunchbase.com\/organization\/glovo-app\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.crunchbase.com\/organization\/glovo-app<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-does-glovo-make-money\"><\/span>How does Glovo make Money?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Moving to the question &#8211; \u201cHow does Glovo make money?\u201d. Glovo makes money by charging fees from the partner restaurants or shops. This fee ranges from 22-30% (as per the reports of 2019) of the value of food that is being delivered to the customer. So, the partners will give a portion of their income to Glovo on delivery orders. <\/p>\n\n\n\n<p>Out\nof this earning, a certain portion is given to the courier partners also\ndepending on the distance they cover. This is exactly what most other gig\nplatforms are doing by working on the concept of the sharing economy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"glovos-potential-collaborators\"><\/span>Glovo\u2019s potential collaborators<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To\nanswer the question- \u201cHow does Glovo make money?\u201d, one must look into the\ninternal analysis of the company. The excellent collaborators of Glovo are the\nprime key to its rapid success. Here are few important collaborators of the\ncompany:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Key Investors<\/li><\/ul>\n\n\n\n<p>Glovo\nhas the support of several key investors that form the backbone of the company.\nAs already discussed, Glovo has successfully raised a total funding amount of\n$634.5M till now which has allowed Glovo to expand itself to 21 countries\nworldwide.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Well qualified employees<\/li><\/ul>\n\n\n\n<p>The\ncompany comprises a huge talent pool. For example, the co-founder of the\ncompany, Shasha Michaud, is a well-known expert in digital business startups.\nNot only this, many such employees contribute to the success of the company.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Large-scale business network<\/li><\/ul>\n\n\n\n<p>Glovo\nis working with large-scale business partners. These partners include physical\nshops, restaurants, e-commerce businesses, and service partners. They help the\ncompany to meet any demand of the customer in a fast and effective way.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Expert marketing team<\/li><\/ul>\n\n\n\n<p>Glovo\nhas an expert marketing team. Also, as per the recent update, the company has\nappointed its new Chief Technology Officer to focus more on enhancing its\nmarketing strategies by capitalizing on technology.<\/p>\n\n\n\n<p>Here are some other informative articles explained by NCrypted Websites:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><a href=\"https:\/\/www.ncrypted.net\/blog\/hiring-freelancers-vs-agency-developers\/\">Freelancers Vs Agency Developers: Whom Should You Trust to bring Your Idea to Life?<\/a><\/li><li><a href=\"https:\/\/www.ncrypted.net\/blog\/the-first-class-of-indian-internet-startups\/\">The First Class of The Indian Internet Startups<\/a><\/li><li><a href=\"https:\/\/www.ncrypted.net\/blog\/unicorn-company\/\">Unicorn Company: Billion Dollar Startups<\/a><\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Food delivery startups have experienced a huge boom in the last few months. They were already very popular but the COVID pandemic restrictions led to the fast growth of these startups. Many food delivery startups are working globally but this article will unveil the business model of a fast-growing food delivery startup- Glovo, which gained [&hellip;]<\/p>\n","protected":false},"author":535,"featured_media":5993,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[496],"tags":[1579],"class_list":{"0":"post-5992","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-models","8":"tag-how-does-glovo-make-money"},"_links":{"self":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/posts\/5992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/users\/535"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/comments?post=5992"}],"version-history":[{"count":0,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/posts\/5992\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/media\/5993"}],"wp:attachment":[{"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/media?parent=5992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/categories?post=5992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ncrypted.net\/blog\/wp-json\/wp\/v2\/tags?post=5992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}