Why Glovo thinks Africa could become the world’s biggest quick commerce market

Glovo believes that Africa has the potential to become the world's biggest quick commerce market, a notion that challenges the traditional e-commerce model adopted in Europe and America. The continent's dense cities, informal economies, and smartphone adoption make it an attractive ground for the delivery platform, which sees a future where quick commerce outpaces traditional online retail.

What Glovo Expects

Glovo's operations director, Dima Rasnovsky, thinks that Africa's delivery economy will be shaped by its unique characteristics, such as dense neighbourhood stores, mobile money infrastructure, and merchants already close to where customers live. This model diverges from the warehouse-heavy systems of Europe and America, where Glovo operates in several markets. Rasnovsky believes that the company's focus on quick commerce, delivering groceries, pharmacy products, electronics, and other household items within minutes, could become a major player in several African cities.

Inside the Business

Quick commerce seems simple: a customer places an order through an app, a rider collects the item from a nearby merchant, and the order arrives within minutes. However, the economics are far more complex. Platforms mainly make money from merchant commissions and customer delivery fees. But African consumers remain highly price-sensitive, limiting how much companies can charge for delivery. Restaurants and retailers face high import, logistics, and fuel costs, despite recent currency stability in key Glovo markets such as Kenya and Nigeria.

• African consumers remain highly price-sensitive
• Fuel prices are volatile
• Margins are thin

Why This Matters

Glovo's bet on quick commerce comes as delivery platforms across Africa chase profitability after years of expansion driven by discounts and venture funding amid rising fuel costs and food inflation in major markets like Kenya and Nigeria. As margins tighten and competitors like Jumia Food exit the market, platforms are expanding into groceries, pharmacy deliveries, and courier services to drive steadier order volumes. Glovo's strategy may be a leapfrog over traditional e-commerce, which could lead to a unique African model for online commerce.

The Takeaway

Glovo's vision for Africa's quick commerce market is ambitious, but the company's focus on the continent's unique characteristics may pay off. As African consumers continue to demand convenience while living in informal economies, Glovo's model could become the norm. The delivery platform's bet on quick commerce is not just about delivering products within minutes; it's about shaping the future of e-commerce in Africa.