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Glovo To Invest €3.5 Million For Its Operations In Ghana In 2022

Glovo, a leading global on-demand delivery company, is to invest €3.5 million for its operations in Ghana next year.

At a press conference held this week, co-founder of Glovo, Sacha Michaud said the company was investing 1.7 million euros in the company this year.

“The Ghanaian market is a promising market for Glovo and we will continue to invest to reach all the regions of the country and bring convenience to people,” he said.

Glovo, a technology delivery company established in 2015, with headquarters in Barcelona, Spain, entered the Ghanaian market in March this year.

Mr. Michaud said Glovo entered the Ghanaian market to help provide the convenience for people to order products online and be delivered to them at the comfort of their homes.

“Ghana’s adoption of digital technology and good macroeconomic prospects attracted Glovo into the country,” he said.

Mr. Michaud said Ghana’s growing population and increasing internet penetration were good for business. Ghana, he said, was among, the seven countries Glovo was operating in Africa and mentioned other markets include Kenya, Nigeria, and South Africa.

Mr. Michaud said Glovo Ghana was working with about 400 partners in Accra such as pharmacies, groceries, electronics, and restaurants.

“About 90 percent of our partners are Small and Medium-scale Enterprises,” he said, adding that the company had more than 500 fleet Week-on-Week.

Mr. Michaud said the order growth of Glovo Ghana services ranged between 30 and 45 percent month-to-month since March this year.

“The value of our orders month-on-month stand at half a million euros and it is envisaged to grow between 1 and 1.5 million euros next year,” he said.

Mr. Michaud mentioned difficulty in getting good quality riders with access to a bike and smartphone, poor infrastructure such as good road, high cost of internet as some of the challenges facing the company.

The General Manager of Glovo Ghana, Pearlyn Budu, said the company was planning to expand to Ashanti Region next month.

“We are planning to enter the other regional capitals next year and will do three regions within a year beginning from next year,” she said.

Ms Budu said the company was planning to source its delivery and paper bags locally to help retain the monies used for import local and help boost local production.

Source: Ghanaian Times

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