With the delivery for companies, Glovo seeks to develop in the country

Today, this sector is run by Glovo, originally from Barcelona, ​​which is present in 43 localities in seven provinces and is looking for "a consolidation after 2018 of explosive growth", based on "a base of 39; sustainable users ". The company recognized by the yellow backpacks of its delivery men owns about half of the activities. It has about 6,000 glovers and has delivered more than 5 million orders since its launch in the country.

Its presence in Argentina is important to the brand since it is its third largest market worldwide. That's why the bet is strong. Upcoming projects include expanding to five other provinces, reducing the average number of orders per order to less than 38 minutes and three new initiatives: Cook Room (partner space), Glovo Business (considered a mail, especially for e-commerce) and Super Glovo (food).

Ámbito has been meeting with the company's new national director, Martín Rubino, who gave his vision of accelerated growth of the sector, economic news and changing consumer habits.

JOURNALIST: How to explain this explosive growth of delivery services?

Martín Rubino: Argentina is a country with a well-established delivery culture, it's part of our customs. The difference was that before ordering pizzas or empanadas, which were your two magnets in the fridge, these apps offered you all the gastronomic offer of the city in the palm of your hand. There are countries where this custom is not so widespread. For example, in the United States, online delivery costs more than in Latin American or European countries. Then I think it's combined with a demographic theme; We have this generation of Generation Y who is worried, very busy and wants to do everything fast, and we tend to channel our lives, for better or for worse, through cell phones. Then, the delivery in the cell phone, the possibility to see all the prices, the whole offer, to see photos of what we can ask, is something very well nested in our habits and customs with this generation who is our main audience. The user base grows and then spreads beyond this age group, although the majority is still under 30 years old. This is a phenomenon that was already occurring and that the arrival of the platforms, with all the necessary investments, has simply catalyzed it. We come to take advantage of a trend that already existed and that no one was satisfied with it.

Q: So, does it meet the needs more than a change of housing caused by technology?

M.R: It's a good point. It's a round trip. I think it was on the one hand, and that the fact that they started asking for more products and more frequently was allowed by the platforms. Before delivery, you had three options in your house and you asked for it three times a week. Today, with the platforms, we have many more options, even another type of reduced access, such as pharmacies, supermarkets and other types of products, and that you use more often. I think the users already had this need and what the apps have been brought to do, it's to empower him.

Q: It's striking that explosive growth coincided with a time when consumption is dropping sharply, how do you explain that?

M.R: It's interesting, and it may be a coincidence. I do not know why Glovo and other platforms landed in the country in mid-2017, just the year when everything was getting a little complicated economically. But I think what's happening in this sector is that you're creating a market out of nothing, and that's why growth is so accelerating because you are creating new business opportunities that did not exist. And on the other hand because you replace some of the traditional consumption. In our case, there is surely some of the sales that were previously tied to traditional delivery and are now channeled through the platform. And if we look at the slow economic downturn, we're just replacing the restaurant exit, which will probably be cheaper for you, because there you do not drink, you do not spend parked. There is a bit of that going around. In fact, what we are seeing with the partners is that there are cases of brands that, at this stage, manage to survive and be profitable through delivery, which can reach 30% of the turnover. of a local. And in times of recession, the sale may be necessary to sustain its activities. We have also the case of partners who grow up thanks to the delivery, although the context is difficult. Context has an impact, but we are coming to thwart it and help the sector move forward despite the situation.

Q: So did the crisis benefit them?

M.R: I would not say it benefits. Glovo generates growth opportunities for a sector likely to be affected by the crisis. I would not say that it benefits us; For us, it would be far better to have a growing market because it means that people can still spend a little more. It is clear that delivery is a non-mandatory consumer product. With which a positive economic context would allow us to develop much more quickly and that our partners can develop even more. But delivery is an opportunity to improve the activity of our partners in a context that is not the best.

Q: What are the benefits for partners to work with Glovo?

M.R: What we offer is the opportunity to reach hundreds of thousands of consumers. It will be very difficult to have the same scope with something that, in your local, with your own delivery service and your own promotional efforts. People tend to spend more time and buy more in a place where they have all the consolidated offers. This is the same thing that has happened with eCommerce sites. You will tend to use an application in which you find everything you want, which calls or between different applications of different brands. An advantage is this window. And on the other hand, it simplifies the logistics structure; Our fleet of 6,000 business enthusiasts is convinced that they can deliver much faster and better delivery than if their own fleet was used.

Q: What is your opinion on the decision that prohibited the operation of delivery applications in the city?

M.R: The decision was appealed and the judge's decision overturned. However, this has allowed us to continue to focus more and more on road safety guidelines for road lovers and to work with the city government to continue to improve traffic safety.