Germany’s Delivery Hero is set to develop into Glovo’s majority shareholder following a deal to acquire an additional 39.4% stake of the Spanish delivery startup, of which it already held 44%.
We realized of the deal over the vacations, however you’ll be excused for those who missed the information when it broke — the deal was announced on December 31 after 11 p.m. CET, a lot to the annoyance of Spanish reporters. “If they have no consideration for their delivery workers, [why would they have any] for the press?” El Confidencial’s Michael McLoughlin ironized on Twitter.
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But let’s not let inside baseball get in the way in which: The transaction is an attention-grabbing piece of reports from a variety of views. This morning, we’ll dig into a variety of them, together with the present tempo of on-demand startup consolidation, the ability of geographic growth in the 2 firms’ market, and why Glovo didn’t go public because it as soon as focused.
Delivery Hero has a name subsequent week with buyers relating to the deal, nevertheless it was sort sufficient to drop a short presentation on the transaction, so we’ve got additional ammo to play with. Let’s get into it!
The key historic context for the Delivery Hero-Glovo deal is DoorDash’s current settlement to buy food delivery company Wolt for €7 billion, or round $8.1 billion. Wolt is a Finnish company, however with a huge geographic footprint. At the time of the DoorDash deal, TechCrunch wrote that Wolt “has over 4,000 employees across 23 countries.”
Glovo is additionally lively in a host of markets, a feat that it notably achieved not less than in half due to acquisitions. The company purchased manufacturers from, of all firms, Delivery Hero in 2021, when the Spanish company acquired brands from its new parent company for €170 million. But that was not the tip of Glovo’s 2021 deal spree.