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May 14.2025

2 Minutes Read

Glovo’s Strategic Bet: Prioritizing Nigeria as Its Best African Market

Glovo Nigeria Expansion: smiling man in suit with abstract background.

Glovo’s Strategic Pivot: A Bet on Nigeria

After navigating the complex landscape of Ghana’s food delivery market and ultimately exiting in 2024, Glovo is now putting its full weight behind Nigeria as its primary growth opportunity in Africa. As tensions mount in the competitive food delivery sector, the Spanish giant is keen to realign its business strategy, shifting focus from struggling markets to those with promising growth prospects. This pivot speaks volumes about the evolving dynamics of digital logistics in Africa.

Driving Forces Behind the Shift

William Benthall, Glovo’s global public affairs lead, articulated a clear rationale for the company’s renewed enthusiasm for Nigeria. He pointed out that Nigeria’s unique economic conditions, vast urban centers, and growing consumer demands provide a fertile ground for Glovo's operational model. For context, while the company invested over €206 million across the continent, Nigeria has emerged as the center of attention, highlighting its potential as a key profitability driver.

Lessons from Ghana: A Cautionary Tale

Glovo's exit from Ghana offers critical lessons for its Nigerian venture. Initially launched amidst the pandemic’s peak—notably, Ghana enforced stringent travel restrictions—Glovo aimed to capture a burgeoning market. However, the exit signified not only operational challenges but also underscored the competitive landscape dominated by established players like Jumia and Bolt. These lessons feed into Glovo's strategic model as it aims to avoid missteps in Nigeria.

Future Trends: Glovo’s Vision for Nigeria

The outlook for Glovo in Nigeria appears optimistic, propelled by its expansion into the quick commerce segment, which has demonstrated a remarkable 76% growth in gross merchandise value in 2024. By onboarding thousands of local vendors and creating substantial job opportunities for riders, Glovo is set not only to capture market share but also to contribute positively to the local economy. This local engagement might bolster its brand loyalty, a strategy that might have benefited it in markets like Ghana.

Empowering Local Economies: An Insightful Perspective

Beyond corporate profits, Glovo’s strategy emphasizes the economic upliftment of local communities. By integrating small and medium-sized businesses into its operations, Glovo has helped generate over €1 billion in economic value on the continent. This commitment to social impact is valuable in a market where consumer preferences are increasingly shaped by brand values and corporate responsibility. As Nigeria continues to expand its digital economy, initiatives like Glovo's can drive both technological adoption and economic growth.

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Glovo’s Strategic Bet: Prioritizing Nigeria as Its Best African Market

Glovo’s Strategic Pivot: A Bet on Nigeria

Driving Forces Behind the Shift

Lessons from Ghana: A Cautionary Tale

Future Trends: Glovo’s Vision for Nigeria

Empowering Local Economies: An Insightful Perspective

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