Glovo Local launched to help small businesses digitize their products and services

Glovo has launched a new program targeting SMEs in the retail and restaurant industries. Known as Glovo Local, the multi-category app says the program seeks to help these SMEs to digitise 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.

“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.”  Caroline Mutuku, General Manager Glovo Kenya, said. 

Services available on Glovo Local 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 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 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.

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.

More broadly, there are several factors that fuel e-commerce growth in Kenya. Kenya recently adopted a digital economy blueprint meant to further develop the ICT sector and e-commerce activity. UNCTAD estimates the proportion of Kenyans aged 15 and above with a financial, (mobile or bank) account which enables them to transact online was second only to Mauritius, particularly because of the high usage of the mobile money system of M-Pesa. The government’s ambition for universal 4G coverage alongside accelerated smartphone ownership further places Kenya as one of the fastest growing e-commerce markets.

The Glovo Local program has been launched in all 25 markets in which Glovo operates including Kenya.  

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