Glovo

Glovo is a Spanish start-up founded in Barcelona in 2015. It is an on-demand courier service that purchases, picks up, and delivers products ordered through its mobile app. It is often compared to American company Uber, due to its similar business model of offering a platform that connects independent contractors providing a service (in this case, delivery of goods) to customers.

History

Glovo was founded by Oscar Pierre and Sacha Michaud. In its early stages, the company faced significant challenges, including a lack of initial funding and difficulties in attracting drivers. However, it has since expanded rapidly and as of 2021, operates in over 20 countries and more than 100 cities worldwide.

Business Model

Glovo operates on a gig economy model, where delivery drivers, known as "Glovers", are independent contractors who use their personal vehicles to deliver goods. Customers place orders for specific items through the Glovo app, and Glovers purchase and deliver these items. The company makes money by charging customers a delivery fee and taking a commission on each order.

Criticism and Controversy

Glovo has faced criticism and legal challenges related to its treatment of Glovers. Critics argue that the company exploits its drivers by classifying them as independent contractors rather than employees, thereby avoiding the cost of benefits and protections that are typically provided to employees.

See Also

• Uber
• Gig economy
• Start-up company