Glovo 2.0 - Teaching Note: Pivoting to a New Business Model

  • Reference: SMT-131-E

  • Number of pages: 8

  • Publication Date: Oct 11, 2019

  • Source: IESE (España)

  • Type of Document: Teaching Note

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Description

The last-mile food delivery market is on rise. The trend is clear, every day, more people is using a mobile application to buy (and to order food) from their mobile phone. With that, local businesses and restaurants see an opportunity to sell their products and services to a market that, until recently, was unattainable. In that context, more and more competitors are venturing in this sector, but there are a few who manage to survive. To rely in a competitive business model seems to be one of the key ingredients to do so. This case study analyses the changes that Glovo made on its Business Model after summer 2016 until December 2017, when we met Oscar Pierre, the founder and CEO of Glovo at their headquarters in Barcelona. The case starts with a diagnosis of what was the situation in the company in April 2016, when the company started a stagnation process that lasted for a few months. After that, the case analyses the changes introduced in the Business Model for, at the end, show how the results of the company changed as a possible consequence of those changes.

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