PedidosYa acquires Glovo’s operations in Chile, redefines targets

Contxto – Following Glovo’s exit from the Chilean market last week, it now appears that PedidosYa will be filling the void. That’s to say, the Uruguayan startup plans to absorb the Spanish company’s operations in Chile while implementing new expansion strategies.

In Summary

Managing Director Juan Martín López informed PULSO that his company is in the first stages of acquiring Glovo. So far, this has involved inviting former Glovo users to adopt the PedidosYa app plus purchasing some initial assets.

Simultaneously, the last-mile delivery platform wants to attract new categories of businesses to join its network. These include supermarkets, pharmacies, etc.

“There is still a lot of space for growth,” said López, who doesn’t consider Glovo’s departure from Chile to be detrimental for the delivery market. “Although the industry has grown a lot, the penetration compared with other countries shows that there is still a lot of room to keep growing.”

In-Depth

Part of PedidosYa’s strategic plan is to solidify new partnerships with supermarkets where average purchases are 50 percent larger (more valuable) than standard orders. Besides supermarkets, PedidosYa also wants to onboard more convenience stores, pet retailers, pharmacies, as well as videogame shops, to boost coverage.

“We are learning a lot every day and we are putting a lot of resources and technology at the disposal of the industry,” said López. “What encourages most us as a team is to continue to grow and expand services. Above all else, though, is improving the level of service. It’s an industry that keeps us alert all the time. “

Both Glovo and PedidosYa belong to the same European shareholder and multinational food delivery conglomerate, Delivery Hero. Endowed with US$169 million in Series D funding, Glovo parted ways with Chile to strengthen its efforts elsewhere.

Since then, PedidosYa hopes to “position itself as the undisputed leader in the Chilean market,” according to a press release. The firm has been in Chile since 2010 and has incorporated over 6,000 stores on its platform. Moreover, it has around 200 employees and 2,000 dealers.

“It’s a process, it’s not from one day to the next,” said López, hoping to not only expand customer clientele but also restaurants and distributors. “In all three parts, we will take these synergies and take advantage of them to continue growing.

As of today, PedidosYa is present in more than 400 Latin American cities. It saw over 15 million downloads during the first quarter of last year. In the upcoming weeks, it will debut services in two new Chilean cities – Calama and Huechuraba.

Conclusion

“One man’s loss is another man’s gain.” Although Glovo didn’t prosper in Chile, the business’ exit may help other competitors gain the upper-hand in a very saturated market.

I think PedidosYa has two advantages over Glovo – timing and geographic origin. First off, PedidosYa arrived in Chile back in 2010. More time operating in the country may imply higher levels of trust and brand recognition among the public.

In addition to time is inherent geography. PedidosYa is an Uruguayan company whereas Glovo is Spanish. Customers may be more willing to endorse a fellow Latin American partner rather than some overseas corporation. Perhaps these two ingredients will make a promising recipe for success.

-JA