Partnerships / Acquisitions

Delivery Hero Acquires Glovo's LATAM Business For Some $272M

Delivery Hero Acquires Glovo's LATAM Business

Delivery Hero said on Wednesday (Sept. 16) that it has acquired fellow delivery service Glovo's Latin American operations for about $272 million.

Delivery Hero focuses only on food. Glovo says it will deliver just about anything.

Germany-based Delivery Hero already operates in Argentina, Panama and the Dominican Republic – countries also served by Glovo – and is adding Peru, Ecuador, Costa Rica, Honduras and Guatemala through the deal, according to Wednesday’s news release. Glovo will continue to operate the businesses in the five countries that are new to Delivery Hero until March of 2021.

Niklas Östberg, CEO and co-founder of Delivery Hero, said in a prepared statement: "Latin America is a region with exceptional growth potential for online delivery. Acquiring Glovo’s local operations gives us the opportunity to double down on our efforts to drive innovation, continuously improve customer experience and support local vendors in the region. We have been working closely with Glovo for many years, and are proud to incorporate their Latin American services into our global network."

Oscar Pierre, CEO of Glovo, said in a prepared statement: "We feel that it’s important to focus on key markets where we can build a long-term sustainable business and continue to provide our unique multi-category offering to our customers. This deal will allow us to strengthen our presence in those markets where we are already very strong, while also allowing us to invest in new markets where we see huge growth potential and opportunity. We truly believe that Delivery Hero is the best possible partner to take the business we’ve built in Latin America to the next level. They have everything it takes to go on and become the leading player in the region."

Berlin-based Delivery Hero has 27,000 employees and processes more than four million orders daily, according to the company.

Glovo is based in Barcelona, Spain, and says it has 1,700 employees, 50,000 active couriers and 7.3 million active customers.

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