This article was last edited on 19th July-2018 as Glovo secured €115 million (~$134M) in Series C round of funding.
On-Demand Local Delivery Startup, Spain’s Glovo raised €2M funding in November 2015 and now, it has adopted Italy’s Foodinho to expand its on-demand delivering Service.
Furthermore, According to the latest report from TechCrunch, “The Spanish startup, Glovo has $134M (€115 million) in Series C round of funding.” Entrepreneurs and VCs, at Glovo, promises to deliver food or anything at your door within 1 hour from any shop or restaurant in the Spain. However, they are becoming more mature and thus, expanding their market to Italy by acquiring Foodinho, a personal GPS proper food-delivery service provider.
— Glovo (@GlovoApp) March 31, 2016
We have already seen many players being adopted by other companies or merging with the giants to expand their service beyond the boundaries. Just like Foodinho with Glovo. Foodinho is a personal GPS food-delivery friend, serving in Milan (Paris, London, and the US soon). It delivers delicious food from the restaurants in 30 minutes. You just have to click, order and enjoy the meal.
Foodinho’s mission is to “bring the best restaurants into everyone’s comfort of their home or office – quickly.” Food-lovers gives an order to Foodinho of their favorite dish through a website or a mobile app and sends to the restaurants. After 30 minutes, they deliver to its clients and clients also track their order real-time.
Foodinho also has a fantastic team of eco-friendly drivers, who deliver food by agreements with the best restaurants in Milan to serve great food to customers.
Recently, Glovo secured €30 million round led by Rakuten Capital and Cathay Innovation. Where its existing investors Seaya Ventures, Entreé Capital, Caixa Capital Risk, and Bonsai Venture Capital also participated.
What Glovo Offers with Foodinho?
Thanks to the acquisition, Glovo now offers everything from any shop or restaurant to the users reside at Barcelona, Madrid, Valencia and Milan in under an hour. It’s much wider than Foodinho’s original proposition that only focused on restaurants.
Glovo co-founder and CEO Oscar Pierre tells TechCrunch:
“We know Italy is a great opportunity for us and we aim to become the leader in this market. So far, Foodinho has just been offering food delivery but as you know, our vision goes beyond that, aiming to be the leading mobile integrated marketplace with same hour delivery.”
What’s Reason Behind this Acquisition?
This acquisition saw a profit for Foodinho’s investors, it was all-cash and marks the start of Glovo’s internationalization, which is the main goal, said by Michaud. “Paris is the next major city we will be launching and we expect to be there soon,” he says.
Tok Tok Tok, the on-demand delivery application offers desired things in less than an hour, is well-established in the French capital city while Stuart, On-demand delivery for businesses that raised €22 million in funding, is also ready to give tough competition.
All these companies would contend to offer a different on-demand delivery model, however, there is enough interaction for things to get attention-grabbing.
Why On-demand Delivery Service Targets Food Industry?
Nowadays, the food delivery industry has become popular among the business to acquire. Food delivery can tackle with three main step: Ordering, Cooking, and Delivering.
Previously, users have to visit a store to purchase groceries. Moreover, restaurants serve cooked meals with the home delivery option. However, such type of traditional models has been disrupted by the on-demand economy completely.
There are many mobile applications like Glovo, helping people to purchase anything online and have them delivered to their door within 30 minutes.
And, if you want to eat the cooked food without waiting, you have an advanced booking option for any restaurant through mobile applications.
On-demand food delivery industry has come a long way in terms of technology. In the first quarter of 2015, the meal delivery industry becomes a trillion-dollar industry.