The delivery business continues to grow as new consumer demands give priority to online orders, and along with this it continues to strengthen its position in Europe. This Spaniard has managed to proliferate in the different European markets thanks to his food delivery. However, in recent months it has begun to bet on a broader business model, as we have seen
In the same way, it has also dedicated itself in the last year to reinforcing its commitment to Q-Commerce, expanding in the national and Portuguese markets with Lola Market and Mercadão. These movements point to the recovery of its business, which in 2019 presented great losses for the company.
An 80% loss cut points to a 2020 recovery for Glovo
According to company statements, Glovo has become operationally profitable in several of the 23 countries in which it is present, including Spain and Italy, achieving positive global operating margin since mid-2020. This in an exercise 2020 in which doubled its turnover achieving a global figure of 360 million euros.
A considerable recovery compared to the 128 million invoiced during the period of 2019, despite the blow that it meant for the company established in Spain, which opens a horizon of uncertainty regarding the future of the company’s employment relationship model with its delivery men. Even so, Glovo’s good year has led it to propose an expansion of its workforce, keeping the remaining 8,000 as self-employed… Although this intention has not yet materialized,
On the other hand, the company’s assets in Spain have reached an estimated 390 million euros, more than double the 192 million valued in 2019. Likewise, the company’s losses, although present, decreased considerably when presented at 51 ,4 millions. This is equivalent to a reduction of 80% compared to the fiscal year of 2019 where the losses were 238.5 million euros.
A fundamental aspect of this recovery was the sale of its business in Latin America to Delivery hero, its main competition in the delivery business, and also one of its largest shareholders. On the other hand, its international expansion strategy has also been key in this recovery, as it has launched its service in 400 new cities and 3 countries globally.
Results in Spain
In Spain, Glovo closed 2020 with the incorporation of 934 new employees. Although this has meant a 8.5% increase in personnel costs, has been offset by the increase in revenues of 140.5 million euros, which represents an increase of more than 36 million compared to 2019.
Glovo prepares for its IPO in 2022
The delivery company has not yet offered official statements about its IPO, however, this recovery in its accounts offers a solid basis for taking this action. , a Madrid-based law firm, to prepare for its debut on the stock markets.
If carried out, this would mean a new growth horizon for Glovo, which would facilitate the collection of investments greater than those it has raised so far. Currently the company’s shareholding structure is dominated by the German giant, which has 47% of the shares. In any case, it is an action that is still in deliberation and there is nothing left to do but wait to see Glovo’s next movements.
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