Business news from Ukraine

GLOVO IN UKRAINE REACHES BREAK-EVEN – GENERAL MANAGER

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.

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GLOVO DELIVERY SERVICE LAUNCHES IN KHERSON

Glovo international delivery service started its operations in Kherson, a company’s press service reported.
“Since October 1, residents of the city can use Glovo delivery services. This is the eleventh city on the Ukrainian map, where the Spanish service will operate delivering whatever you want within the city limits,” the report said.
Glovo couriers deliver almost everything that fits the size of a backpack up to nine kilograms. The cost of the Courier service is fixed and totals UAH 69.
Glovo (Spain) international delivery service started operation in Kyiv in October 2018.
Mykolaiv is the eighth Ukrainian city to welcome Glovo. The service has been already launched in Kyiv, Kharkiv, Dnipro, Odesa, Lviv, Vinnytsia, Zaporizhia, Poltava, Mykolaiv, Chernihiv and Kherson.

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GLOVO INTERNATIONAL DELIVERY SERVICE LAUNCHES IN MYKOLAIV

Glovo international delivery service started its operations in Mykolaiv, a company’s press service reported.
“Since August 12, residents of the city using a mobile application can receive their ordered favorite food, necessary products in less than an hour or to please close ones with a pleasant gift,” the report said.
Glovo couriers deliver almost everything that fits the size of a backpack.
Mykolaiv is the eighth Ukrainian city to welcome Glovo. The service also was launched in Kyiv, Kharkiv, Dnipro, Odesa, Lviv, Vinnytsia and Zaporizhia.

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GLOVO PLANS TO OPEN COOK-ROOM IN KYIV

The Glovo international service plans to open a cook-room in Kyiv in August 2019, Glovo Senior Manager in Ukraine Dmytro Rasnovsky has said.
“Today, restaurants in the center of Kyiv are not coping with orders. We need kitchens from which restaurants could take orders. Glovo has such a project, the Glovo cook-room, when we find a room, lease it and prepare it. Then we offer that they be occupied by certain partners, which, for example, have exclusive contracts or good accessibly. I admit that in August we will open the first cook-room and put three or four non-competing partners there,” he told Interfax-Ukraine on the sidelines of the Sup Day Forum 2019.
In this case, Glovo considers different locations.
“On the one hand, we see a need for the center of Kyiv, on the other – in Troyeschyna district, where there are few places [restaurants] from where you can order food. We will carry out the analysis and make a decision,” Rasnovsky said.
In this case, according to him, restaurants often do not cope with the number of online orders. This trend is becoming a “bottleneck” in the food delivery market.
“Kitchens are not ready for such a number of orders, they do not have the capacity to provide such a flow. Restaurants were planned for a certain number of orders, and Internet delivery expands the demand for their services. Startups that provide infrastructure for so-called dark kitchens appear in the world,” Rasnovsky said.
According to him, cook-rooms are a profitable option of “expansion” for those areas of Kyiv, where it is unprofitable to open a restaurant.
“And the ability to open a cook-room under a familiar brand changes everything,” the manager of Glovo said.

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