Delivery Hero becomes majority shareholder in Glovo

The DAX-listed company only announced its withdrawal from the German market at the end of 2020 and recently discontinued the Foodpanda brand. However, Delivery Hero is still involved in other markets and is increasing its stake in the delivery start-up from Spain.

Delivery Hero is increasing its stake in Spanish delivery service Glovo. So far, Delivery Hero owns 44 percent of the shares. Now 39.4 percent will be added, which the Berlin-based company will buy from previous shareholders. This will value Glovo at 2.3 billion euros, writes Delivery Hero. The company had already participated in a 450 million euro financing round of the Spaniards last year and thus received the previous shares. Glovo shareholders will enter into an exchange and receive 7.9 million Delivery Hero shares in return.

Founded in 2015, the startup lets couriers from shopping malls, pharmacies, restaurants and supermarkets deliver products to users' homes. In 2021, Glovo generated revenues of €800 million from this, and 70,000 couriers are employed by the company.

Glovo's management, which consists of the two founders, will remain, as will the brand. "They are pioneers in the industry by offering a multi-vertical service from the beginning," Delivery Hero CEO Niklas Östberg said. "Their focus on product and quick execution have given Glovo a leading position in 16 out of 25 markets, even though they started a few years later than their competitors."

"I believe our potential is still untapped and I am pleased to have found a partner that fits our ambitions and culture and will continue to support the adventure we have started to drive innovation," Glovo CEO Oscar Pierre said of the new majority shareholder. Until the end of January, Glovo's remaining shareholders can still consider selling to Delivery Hero as well.