Glovo, one of the world’s leading multi-category delivery players, today announced that it has reached an agreement to acquire the grocery delivery companies Lola Market and Mercadão. The financial details of those acquisitions have not been disclosed, but since Glovo raised €450 million in their Series F funding round earlier this year, the Spanish scale-up certainly has enough funds to make a lot more of such acquisitions in the near future.
Both Lola Market and Mercadão are on-demand delivery platforms that connect supermarkets, traditional markets and local independent stores with customers. Lola Market operates in Spain while Mercadão is focusing on Portugal, however, between them, the two companies have a portfolio of over 30 partners across the two countries.
The acquisitions of both Lola Market and Mercadão complement Glovo’s growth strategy and further strengthen its Q-Commerce division following its recent acquisitions of Delivery Hero’s businesses in Eastern Europe and its €100 million partnership with Swiss-based real estate firm, Stoneweg.
By integrating two new marketplaces into its own portfolio, Glovo now continues to position itself as the primary on-demand partner for retailers of all sizes. Founded in 2015, Glovo believes that changing consumer habits are redefining the delivery industry and this deal is a reflection of that change; enabling Glovo to cover the main three purchasing occasions for groceries consumers: emergency essentials, fast-access convenience and planned purchases (larger basket orders).
Following the acquisitions, Glovo will strengthen its competitive position in Europe in key markets. The company’s Q-Commerce division is on track to reach an annual Gross Transaction Value (GTV) of more than €300 million this year, and expects that to more than triple by the end of 2022, surpassing a run rate of €1 billion.
Both brands will retain their respective identities and operate independently of Glovo; they will also fall under the leadership of Gonçalo Soares da Costa, CEO of Mercadão. The aim will be to replicate both Mercadão’s and Lola Market’s success in all the countries in which Glovo operates, initially expanding in Poland and Italy.
Oscar Pierre, CEO and co-founder of Glovo, who also spoke at this year’s EU-Startups Summit, commented: “We see huge potential in the on-demand groceries marketplace and both companies are strong local players in their respective markets, and further strengthen our Q-Commerce offering. With Lola Market and Mercadão on board, we can build stronger partnerships with retailers, offer our users big-basket purchases and provide a more complete service. These acquisitions represent a significant step forward for us, as we’re now able to cover all of the main purchasing considerations for groceries customers, making Glovo a one-stop-shop for e-groceries.”
Lola Market was founded in 2015 and is headquartered in Madrid. Last year we highlighted them as one of 10 European online supermarkets to watch.
Luis Perez del Val Sheriff, the CEO of Lola Market stated: “We are very proud to be joining Glovo and Mercadão, and we believe that together we are offering users the very best groceries delivery experience in Europe. Our expertise in planned purchases and big basket deliveries, as well as our loyal user base and cutting-edge technology, make for a very attractive proposition. We’re confident that together we can continue to make ordering food more accessible and convenient for users than ever before.”
The Mercadão CEO Gonçalo Soares da Costa added: “We believe that the combined experience and talent of both Mercadão’s and Lola Market’s teams, coupled with Glovo’s international reach, will allow us to offer a truly unrivalled delivery service to customers. It’s a challenge we look forward to facing and one we are undertaking with enthusiasm and determination.”