Glovo, the European on-demand delivery startup had announced its exit from Egypt following €150 million funding round in April 2019. Their re-entrance into the Egypt market is good news to their 40 employees whose jobs were abruptly terminated.
Glovo is a Spanish on-demand home delivery courier company founded in 2015. The company first launched in Egypt then recently expanded to Nairobi, Kenya. In less than a year, despite fierce competition, Glovo gained about 3000 active delivery partners while operating in Egypt, and has been downloaded over 16 million times.
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The company was said to have exited Egypt as a result of an agreement it signed with Delivery Hero, a major competitor, and shareholder. The Egyptian Competition Authority (ECA) stated that the acquisition of 16% stakes and eventual shutdown of Glovo by Delivery Hero was violating the competition protection law. ECA obligated Glovo to return operations in Egypt after accusing the two firms of anti-competition market allocation agreement.
Glovo is back to Egypt and intends to roll out services across the cities of Maadi, Heliopolis, and Alexander. They also plan on launching operations across the Sub-Saharan countries of Nigeria, Ghana, and Tanzania.
