Glovo has announced the launch of Glovo Local, a new program for small and medium-sized businesses in the retail and restaurant industries to enable them to digitize their products and services in order to boost their growth.
Glovo Local is an all-in-one hub where local businesses can pick and choose solutions based on their needs and wants through a single site. Services that will be available include digital and operational solutions for their own channels and stores, dedicated tools to help them manage their operations at point of sale (from data insights to providing supply chain solutions) and grow their businesses, together with marketing and advertising capabilities to help them reach new customers and increase their visibility. All of this is embedded in an ecosystem of learning and development opportunities with dedicated tutorials and support within their digital journey.
The launch of Glovo Local coincides with a research commissioned by Glovo in nine markets. In Kenya particularly, it found that in understanding of the market and customers’ needs, 90% was rated as the most critical factor to help businesses remain relevant. Further, 79% of businesses believe a technology partner will help them stay competitive as cost-of-living soars worldwide, compared to the pre-epidemic period, the majority of the businesses 86% indicated they are changing strategies more frequently to reach more customers.
The research also shows that 62% of the businesses are in survival mode. However, 92% are optimistic they will achieve significant growth in the next 12 months. Glovo Local opens up vital routes for businesses into growth, innovation, and continued customer experience.
Caroline Mutuku, General Manager Glovo Kenya, said, “Glovo aims to catalyse the online growth of small to medium businesses, as only 40% of merchants have digital presence in Kenya, currently Glovo has registered over 4,000 businesses on the Glovo App, we aim to
rise this number in 2023. As we continue to play a vital role in digitalization of businesses across the market, we understand the challenges faced by these businesses as a result of the Covid pandemic are therefore struggling to stay afloat. Once the business owners sign up on Glovo Local, we can help them reach more customers, accelerating their way to growth and sustainable profitability.”
The launch comes in the wake of Kenya’s adoption of E-Commerce as it continues to grow. According to Statista, user penetration is above the regional average, with revenues expected to have a positive annual average growth of 16.4% by 2025. With revenue of
US$1.1 billion and a share of 76.1%, eCommerce generated the highest digital revenues in 2020.