He’s smart, but one day Glovo may become a formidable competitor in his own right.
Delivery Hero is honing his delivery skills. Yesterday he said that he is going to transfer his units from the Balkans to Glovo, in which he has 37%. Glovo will pay 170 million.
It’s a smart move. Niklas Oestberg, head of Delivery Hero, does not disclose revenue by country, but the units from which it is derived consist of 6 of its 14 of its European markets (the 14 generated between them 136 million in January-March). It also bought some Latin American units of Glovo in 2020. Dumping unwanted assets may allow Oestberg to focus on core markets, such as fast-growing Asia and Germany, where it is starting a new battle with rivals Just Eat Takeaway.com and Uber. And since Glovo has recently been valued at 1.7 billion, Oestberg can still make money when it goes public.
However, one day, Glovo may become a formidable competitor in its own right.