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East Africa Frontline News

NextFrontier Africa is a media platform spotlighting Africa’s emerging opportunities in technology, tourism, aviation, agriculture, health, logistics, real estate, trade, education, and e-commerce.

June 02.2025

2 Minutes Read

Glovo Vendors in Nigeria Generate ₦71 Billion: A New Era for E-Commerce

Group at Glovo Future of Commerce Summit, Nigeria, vibrant setting.

Glovo's Impact on Nigeria's SMEs: An Economic Milestone

Since its launch in Nigeria in 2021, Glovo has made notable strides in the e-commerce landscape, generating an impressive ₦71 billion ($42 million) in revenue through a network of over 6,000 vendors. This achievement underscores Glovo's role in supporting small and medium-sized enterprises (SMEs) while contributing significantly to the economic fabric of Nigeria.

Market Dynamics and Vendor Growth

The summit held in Lagos highlighted this entrepreneurial ecosystem, revealing that Glovo serves 13% of the 45,000 businesses across Africa that it supports. With ₦200 million invested on the continent and operations spanning 75 cities, Glovo’s growth has been particularly vigorous in Nigeria, especially in major cities like Lagos, where most activities are centered.

Empowering Riders: The Future of Work

Glovo's 2,400 riders are crucial to this operation, earning two to three times the national minimum wage. A recent recognition at the summit, where a rider was honored for completing 14,000 deliveries, illustrates the value placed on their contributions. As the gig economy evolves, the stories of riders like him advocate for the benefits of tech-driven marketplaces for improving livelihood opportunities.

Shifting Towards a Cashless Economy

One of Glovo's most significant transformations has been the dramatic shift from cash payments—reducing from 88% of orders in 2021 to 39% as of today. This aligns with Nigeria’s broader initiative toward a cashless economy, showcasing a trend towards digital integration in e-commerce. Unlike many competitors, Glovo’s retention of cash payments seems strategic, aiming at nurturing consumer trust in a burgeoning market.

Diversification and the Path Ahead

As the competition grows fiercer, Glovo's diversification into non-food items such as electronics and personal care products positions it favorably against startups reshaping the landscape. With a reported 76% increase in quick-commerce gross merchandise value, Glovo exemplifies the adaptability required in today’s digital marketplace.

A Growing Ecosystem for SMEs

The Yellow Effect Report, unveiled at the summit, declared that between 2020 and 2024, Glovo has created €1 billion in economic value for African SMEs. The panel discussions that followed featured prominent industry leaders discussing financing avenues for SMEs, indicating a fertile ground for entrepreneurial collaboration and innovation.

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