The Glovo delivery service in Ukraine has reached breakeven considering the large investments in the growth and development of the company, General Manager of the company Dmytro Rasnovsky has said.
“Now our income minus all costs is a little more than zero, because we are intentionally reinvesting in growth. On the one hand, our unit economy is healthy, and we could, in theory, earn more if we wanted to. But on the other hand, we actively invest in our partners and we reinvest everything that we have. Therefore, we have negative EBITDA,” he said at a briefing in Kyiv last week.
Rasnovsky also said that the global company is investing “millions of euros” in Ukraine, including through profitable European markets and attracting global investments.
According to him, due to the coronavirus crisis, the company grew in Ukraine faster than the plan by 40-50%, while in terms of operating profit per order, it underperformed its financial indicators by about 20%.
“From the point of view of profitability, it would be worth waiting for an increase in prices. But from the point of view of the current economic situation, I do not see the possibility and reason to increase the cost of Glovo delivery services. We came to Ukraine for a long time. For us this is a marathon, not a sprint. Therefore, we will invest to create a market, and now is not the time to raise the tariffs,” Rasnovsky said.
Glovo is an international fast courier delivery service that allows purchasing any item or product within the city and has it delivered. In this case, the object should not exceed the parameters 40x40x30 cm and weigh no more than 9 kg.
Glovo is already represented in 298 cities in 22 countries on three continents: Europe, Africa, Central and South America. Glovo started operating in Ukraine in October 2018.