On-demand delivery services continue to grow globally, with increasing penetration of providers offering to deliver at the customer’s convenience. Similar services continue to grow in Africa, availing a plethora of items from household products and food to laundry. In Kenya, a number of startups offer on-demand delivery for entertainment, food, and household items from local retailers and across clients.
A growing mid-class, and an underutilized capacity in vehicles like motorcycles, provides an opportunity to connect customers to products. For instance, Glovo partners with restaurants like Artcaffe, Java, and Simbisa brands to deliver delicacies to customers. Local supermarkets like Naivas and On The Way have also tapped into the on-demand services, delivering goods within 45 minutes of ordering through Glovo.
In Nairobi, the service delivers along Thika road to Kasarani, Mombasa Road to General Motors, Kiambu road, and Ngong road. The service also connects customers to commodities along Lang’ ata Road, Waiyaki way, Limuru Road, and Karen. The service has further expanded to Kitengela, Mombasa, and Nakuru.
Tech and Pool of Funds Pushing On-demand Delivery Services
On-demand services rely significantly on technology for its efficiency, pegging success on internet connectivity, and numerous mobile devices. According to the company’s head of marketing, Glovo intends to ride on the high smartphone penetration to boost its growth.
“We hope to leverage the high level of smartphone penetration in Kenya to boost our growth.” Revealed Priscilla Muhiu.
Besides, investors like Lakestar and Drake, popularly known for owning Papa John’s continue to support innovations like Glovo. For instance, Lakestar led Glovo’s Series D funding, injecting KSh 17.2 billion to expand into the African Market.
“We will use this opportunity to grow our team of tech experts to create a smarter and more efficient experience for customers and reduce waiting time for Glovers.” Said Mrs. Muhiu, during the announcement of the funding. “We also intend to expand our footprint across Sub-Saharan Africa, with new operations in Ghana, Nigeria, and Tanzania,” she added.
Expanding Beyond Food
Glovo is looking to expand beyond food, to deliver laundry, alcohol, and pharmacy. The application is looking to grow to a lifestyle app, offering essential services beyond delivery. Glovo shows a similar trajectory with Grab, once a food delivery app that morphed into a super app in South East Asia.
“The bold ambition to deliver ‘anything anywhere’ in less than 30 minutes will continue to change consumer behaviour around food and grocery delivery, and much beyond.” Revealed Dharmash Mistry, a board member in the company.
The business is building dark stores to facilitate expansion into these new products, dedicating distribution solely to online demand. The dark supermarkets will help cut delivery time to 20 minutes after ordering, stocking up to 1000 items.
“We aim to lead in every market we enter and provide an on-demand experience that delivers for our customers, Glovers, and partners.” Said Oscar Pierre, the co-founder. “We believe innovations such as dark supermarkets, as well as our appetite to innovate to provide everything through one app for city dwellers.”
Finally, the delivery services is piloting “cook rooms” in Spain, looking to expand into dark kitchens globally. This new project will help its partners cater to orders in an efficient way.
Related: The on-demand economy and its implications for brands entering Kenya
