“Delivery Hero pledged that it will ensure fair competition with Glovo as an independent economic entity and it won’t misuse its ownership rights again to acknowledge confidential information about Glovo to manipulate its economic activity,” according to Egyptian Competition Authority.
Who is Delivery Hero?
Delivery Hero is the German delivery company which owns many brands in the Middle East including Glovo’s competitors Otlob and Carriage. Delivery Hero and Glovo sent ECA an official statement to confirm their commitment to the Competition Protection and Anti-monopoly Law after the first broke its 6th article for its monopolistic practices.
What was behind the scenes?
Delivery Hero has exploited owning 16% of Glovo’s shares to impact its strongest competitor’s strategic decisions, weaken its competitive position and vote as a board member. Also, they made a market allocation agreement which allowed them to divide the market between them geographically.
Such monopolistic practices, which broke CPAM Law, were behind Glovo’s departure (to know what happened earlier with Glovo, read this article we’ve written before). This is because they eliminated the competition and restricted the consumers’ choices for quality with competitive prices.
Moreover, Glovo exited after its mother company received the €150 million Series D investment led by European VC fund Lakestar and Drake (the franchise that owns Papa John’s). So, it’s no wonder that Delivery Hero had a bigger market share. ECA has successfully stopped Glovo’s business liquidation since its presence provides 3000 recent vacancies and investment opportunities to the Egyptian market.
وحشتونا ❤️مبسوطين باستئناف خدماتنا في مصر ??دلوقتي تقدروا تطلبوا اللي بتحبوه من Glovo، استمتعوا بعرض خدمة التوصيل فقط ٥ جنيه ?
Here comes the good news!
Then, on June 19th, Glovo has expressed on Facebook that it missed its users in Egypt! Then to announce the official return of its on-demand courier services via a mobile application. The application collects one product or more that the user orders from many points of sale to be delivered in less than one hour with a fee of only EGP 5 for a limited period.
The service of the Spanish startup is recently available in Nasr City, Heliopolis, and Maadi in addition to other places including Downtown, Agouza, and Zamalek. It’s worth mentioning that Glovo will expand soon in new areas such as New Cairo, 6 October, Alexandria, Haram, and Faisal. Also, we spotted six new vacancies at Glovo in both Cairo and Alexandria on LinkedIn.
It’s not surprising to know that the European on-demand delivery start-up Glovo has grown rapidly in Egypt to gain a double-digit share of this highly competitive market since entering it in 2018.
Expansion is the common keyword behind Glovo’s departure as Delivery Hero subsidiary and returns as a competitor to Delivery Hero. What do you think will be their competitor’s next move? Share your thoughts with us.