Berlin, Germany-based Delivery Hero announced today it has acquired fellow third-party delivery service Glovo’s Latin American operations for €230 million (~$272M USD). The transaction is expected to close in the next few weeks, according to a press release from Delivery Hero.
The deal covers all Latin American countries in which Glovo operates: There is some overlap here, as Delivery Hero already has operations in Argentina, Panama, and the Dominican Republic. Acquiring Glovo obviously means Delivery Hero will widen its reach in Latin America considerably.
Any delivery service aiming to enter or expand in the Latin America market will need to ensure they offer affordable options for restaurants. By some accounts, roughly 96 percent of independent restaurants in Latin America are not even online right now, and restaurant tech is far less developed than in, say, the U.S. and Europe. Even so, the Latin American market is the fastest-growing one outside the Asia-Pacific region.
Delivery Hero CEO Niklas Östberg said in today’s press release that Latin America “is a region with exceptional growth potential for online delivery.”
The acquisition also means more consolidation for the Latin America food delivery sector. Glovo actually exited two Latin American markets earlier this year. Meanwhile, iFood and Domicillios.com merged in April and together compete with the other major player, Softbank-backed Rappi.
Delivery Hero’s last big acquisition was at the end of 2019 when the company bought its South Korean food delivery rival, Woowa Bros.’ Baedal Minjok service, for $4 billion. Prior to that, it had acquired InstaShop, an online grocery marketplace with operations in the Middle East and North Africa. Delivery Hero now operates in 44 countries worldwide.
Glovo will continue to operate its Latin America markets until March 2021, at which point, pending regulatory approval, they will become a part of Delivery Hero’s network.