Spain based delivery startup Glovo announced its unexpected decision of withdrawal from certain markets. Glovo decided to withdraw from certain markets including Turkey. The reason behind this decision was declared to be the company’s desire to focus on other markets where it targets to achieve market leadership and its strategy to transfer the energy to regions with profit-making potential in the short-term.
Spanish Glovo ceases its operations in countries such as Egypt, Uruguay, and Puerto Rico, along with our country. Having local brands such as Yemeksepeti and Getir as competitors was adversely affecting the brand’s competitive power just as is known.
Having just received the unicorn title with the 150 million Euro investment it received by the end of last year, Glovo will focus on other markets it operates in. Glovo desires to direct its effort made in these four countries it withdraws from, to other regions. Glovo declared that the company will focus on Southwest and East Europe, along with Latin America and Sub-Saharan Africa.
According to the announcement made by Glovo’s founding partner and CEO Oscar Pierre, the venture will aim at achieving profitability on a global scale, as of 2021. It’s possible to say that Glovo made such a decision due to the high level of competition in the Middle East and Turkey.
Glovo will continue its operations for a few more weeks and then say farewell to Egypt, Uruguay, and Puerto Rico markets including Turkey. Announcing its withdrawal from the market by acknowledging all its employees, couriers and business partners, Glovo last summer declared its data related with the Turkish market. Glovo used to operate in three different Turkish cities; namely being Istanbul, Ankara, and Izmir.