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 scrapped 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 the Spanish delivery service Glovo. To date, Delivery Hero owns 44 percent of the shares. Now the Berlin-based company is buying 39.4 percent from existing shareholders. This values Glovo at 2.3 billion euros, writes Delivery Hero. The company had already participated in a 450 million euro financing round of the Spanish company 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 start-up has couriers from shopping centers, pharmacies, restaurants and supermarkets deliver products to users' homes. In 2021, Glovo generated a turnover of 800 million euros, with 70,000 couriers employed by the company.

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

"I believe that our potential is still untapped and I am delighted to have found a partner that fits our ambitions and culture and will continue to support the adventure we have started to drive innovation," says Glovo CEO Oscar Pierre about the new majority shareholder. Glovo's other shareholders still have until the end of January to consider selling to Delivery Hero.