Same Day delivery Glovo gets €2m startup funding

Spanish same day delivery company Glovo has just been awarded €2 million in funding to help grow their business in Barcelona, Valencia and Madrid.

As with UK businesses Quiqup and Jinn, the founders of Glovo say that the customer can ask for almost anything within reason and the goods will be delivered within one hour. Glovo founder Sacha Michaud said of his business, “What is clear is that our customers really know exactly what they want and in most cases where we need to pick it up from.”

The firm was given the investment by Zaryn Dentzel (Tuenti), Antai Venture Builder, Felix Ruiz (JobandTalent, Tuenti), Bernardo Hernandez (Idealista, Flickr, ex-Google, Fever), and Cube Investments.

One of the greatest competitive disadvantages of e-commerce is that goods can only be delivered the next day. Customers are also getting busier and more demanding, so the within the hour and same day delivery business is getting a lot more competitive across Europe.

Under the settlement between Glovo and its couriers, they will get 70-80% of the fee plus any tips given by the customer. Michaud said, “By using the resources that a city already has (citizens with free time), we have created a network of on-demand couriers that offer a solution for urban stores looking for a delivery service or for ecommerce sites that want to deliver in 60 minutes to their urban customers.”

There are plans for Glovo to do deals with specific e-commerce companies and other high street stores, charging them a premium to deliver their goods within the hour as well. This should help both sides, with e-commerce tackling the speed of delivery issue they have that has traditionally left them behind their high street counterparts.

A lot of big players are investing money in same day delivery businesses, which seem to be the new fad. It seems to be being well received too. This is a space in the delivery market to watch.