Delivery Hero becomes Glovo’s majority shareholder
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Just hours before 2021 ended, Delivery Hero SE, a local delivery platform based in Germany with operations across the globe, announced it had signed an agreement with a number of shareholders to acquire an additional 39.4% stake in Glovo in exchange for Delivery Hero shares. The deal means Delivery Hero is now the majority shareholder of Glovo. The closing of the transaction is subject to certain customary conditions and regulatory approvals, including merger control clearance in several countries, and is expected to occur in the second quarter of 2022.
In a statement, Delivery Hero said itself and Glovo complemented each other due to their “profound delivery expertise and geographical footprint”. Berlin-based Delivery Hero has been an investor of Spain’s Glovo for many years, and currently holds approximately 44% interest on a non-diluted basis.
After the deal is closed, Delivery Hero said Glovo would “continue operations with their existing brand and platform under their current management team led by its two founders, who will remain invested in Glovo”. The company added that it and Glovo would “leverage shared technology to further improve efficiencies and accelerate product development.”
Commenting on the announcement, Niklas Östberg, CEO and Co-Founder of Delivery Hero, said:
“The Delivery Hero team has admired and supported Glovo for many years. They have been frontrunners in the industry by offering a multi-vertical service from the start. Their product focus and fast execution have given them a leading position in 16 out of 25 markets, despite having launched a number of years later than their peers. We will continue to invest in Glovo’s team and product, and see many opportunities to further enhance their operations with our resources and expertise.”
Meanwhile, Oscar Pierre, CEO of Glovo, added:
“I started Glovo in 2015 right after college, and I find it incredible how technology can have so much impact in such little time. We’ve changed how millions of users get their local products and manage their time in a city. We’re creating a new online opportunity for local merchants and providing earning opportunities to couriers working with our platform. With the markets we cover today, we can serve a total population of more than 700 million people. I believe our potential is untapped, and I’m happy to have found a partner that matches our ambition, culture and will keep supporting this adventure we’ve embarked on to drive innovation further, strengthen our multi-category offering and create additional value for all our stakeholders, and the industry.”
Finally, Delivery Hero announced it would publish a Flash Update on January 11th 2022 to provide “insights into Glovo’s business model, financials and competitive positioning as well as the rationale behind this transaction and Delivery Hero’s planned path to profitability”.