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Delivery Hero becomes a majority shareholder of Glovo

Delivery Hero has become the Glovo’s majority shareholder, when going to control more than 80% of your actions. The company already held 44% of the company’s shares, but has reached an agreement to control another 39.4% of its shares in exchange for titles to Delivery Hero. By taking this step, Delivery Hero looks forward to collaborating with Glovo and sharing technology to improve its efficiency and accelerate product development.

The German company has also opened a dialogue with other shareholders of the Spanish platform, so that when the operation is closed, which both companies hope to do during the second quarter of 2022, the percentage of Glovo titles that can end up in the power of Delivery Hero can increase. These, including the new ones that have already been pre-approved, will be able to adhere to the agreement for a specific period of time just before the closing of the operation, which according to Reuters values ​​Glovo at about 2.3 billion euros.

Whatever happens, Glovo will continue to operate independently through its current platform, and will maintain its brand. The team that will lead Glovo will continue to be the same as it is today, and its two founders, who will continue to be shareholders of the company, will be responsible as before. Glovo, which is dedicated to the distribution of food, food and retail products, currently has a presence in 1,300 cities in 25 countries in Europe, Central Asia and Africa.

Its app has some 15 million active users, whose orders arrive thanks to tens of thousands of delivery people known as riders, whom the company has had to register as employees and stop forcing them to work for it as self-employed as a result of the so-called Rider Law approved in Spain. This, in addition, has served as an inspiration to the European Union to develop a regulation with which it seeks to force digital platforms that operate within the EU to register their workers, who in many cases operate for them as false autonomous.

Niklas Östberg, CEO and one of the founders of Delivery Hero, has underlined that in Glovo «They have been the industry leaders offering a multivertical service from the beginning. Their focus and quick execution of their product has given them a leading position in 16 out of 25 markets, despite having launched several years after their competitors. We will continue to invest in Glovo’s equipment and product, and we see many opportunities to further improve your operations with our resources and expertise.«.

As to Oscar Pierre, CEO of Glovo, recalled that he founded Glovo in 2015, and points out that the company has changed «how millions of users receive their products and manage their time in a city. We are creating a new online opportunity for local merchants, and offering income opportunities to messengers who work with our platform. With the markets we currently serve, we can serve a total population of more than 700 million people. I believe our potential is untapped, and I am happy to have found a partner who matches our ambition and culture, and who will continue to support this adventure we have embarked on to further drive innovation, strengthen our multi-category offering, and create additional value for all our shareholders, and for the sector«.

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