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Spain’s Glovo inks real-estate tie-up to add more dark stores for speedy urban delivery

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Spain’s Glovo, an on-demand delivery app, has announced a strategic partnership with Swiss-based real estate firm, Stoneweg.

The deal will see the latter invest €100M in building and refurbishing “prime city real estate” in some of Glovo’s key markets as the delivery app works to build out its network of dark stores and sign up more retail partners for its urban delivery service, it said today.

The initial focus for the partnership will be on growing its dark stores network in Spain, Italy, Portugal, Romania, with additional countries slated as under review in Europe.

“These are the countries in which both Glovo and Stoneweg have a major presence, and therefore are able to move much quicker when it comes to setting up,” a Glovo spokeswoman told us. “However, the deal is not limited to these countries. Glovo’s aim is to grow and strengthen their Q-Commerce and dark kitchens infrastructure across Eastern Europe too.”

Glovo currently operates 18 dark stores globally — in cities including Barcelona, Madrid, Lisbon and Milan — but said it’s now looking to open similar stores in Valencia, Rome, Porto and Bucharest, among others.

It wants to have 100 dark stores up and running by the end of 2021, it added.

Last September the startup announced the sale of its LatAm ops to food-delivery focused rival Delivery Hero for $272M — leaving it more fully focused on Southern and Eastern Europe.

Then in November it announced the launch of a dedicated business unit to support expansion of the sub-30 minute urban delivery service, which it calls ‘Q-Commerce’ (that’s ‘Q’ for quick) — saying it would accelerate development of a b2b offering to stock third parties’ products in its city center warehouses (and have them delivered to shoppers via the couriers doing gig work on its platform).

Glovo said today that the Stoneweg strategic partnership will help it step on the gas to grow the infrastructure and fulfilment centers it needs to underpin this b2b offering.

The ‘deliver anything’ app is spying an opportunity to capitalize on the coronavirus’ impact on traditional bricks-and-mortar retail — betting urban consumers will make a permanent shift to outsourcing grocery and other convenience/essential shops to an app which bundles high speed delivery, rather than making such trips in person.

Its dialled-up focus on Q-Commerce is a direct response to “changing consumer sentiment and demand for instant and same-day delivery”, it added.

To date, Glovo’s platform has delivered more than 12 million multi-category orders globally, while in 2020 it experienced a growth rate of more than 300% year-on-year.

As well as supermarkets such as Carrefour, Continente, and Kaufland, Glovo’s list of retail partners includes the likes of Unilever, Nestle and L’Oréal, and IKEA — so it’s by no means focused purely on groceries.

It has said it wants Q-Commerce to power delivery of a wide range of products — from toys, music, books, flowers and beauty products to pharmacy items and groceries. And even, in some markets, a curated selected of IKEA wares — i.e. stuff that’s small enough to fit in couriers’ backpacks.

Commenting on the Stoneweg strategic investment in a statement, Oscar Pierre, co-founder and CEO, said: “We believe that the third-generation of commerce is already upon us. Following the close of Stoneweg’s investment, we are consolidating our strategic commitment to Q-Commerce, which will allow us to better connect people with a wide variety of available products in their cities.

“In the wake of COVID-19, we believe that dark stores represent the future of post-pandemic retail, and I think we’ll see a permanent shift in consumer habits towards same-day and instant delivery. We’re excited to continue to expand our offering, so that all types of businesses, from local independent stores to multi-national chains, can reach more and more customers thanks to new technological solutions and highly efficient infrastructure.”

In another supporting statement, Stoneweg’s Joaquín Castellví, founding partner and head of acquisitions for Europe, added that the strategic investment represents “an opportunity to offer our clients to diversify into a new class of retail asset through consolidated cities where Glovo operates — in a segment with great growth potential, accelerated by the situation we are experiencing”.

Glovo’s push to take a margin on a broad range of urban retail comes at a time when consolidation is eating into the thin margin food delivery space.

It is also facing legal challenges to its business model in Europe over the classification of couriers as self-employed — losing a supreme court ruling in its home market last September.

Ministers in Spain are working on a new regulatory framework for delivery apps and Glovo has said it’s awaiting that reform before making any changes but a lot will be riding on the detail.

UK-based Deliveroo also recently lost a legal challenge in Spain over the classification of its couriers. A court in Barcelona found last week that the company had falsely defined 748 riders as self employed, following a 2018 workplace inspection.

The delivery platform which competes with Glovo in the on-demand food and grocery space, announced Sunday the closing of a Series H funding round — raising $180M+ from existing investors, led by Durable Capital Partners LP and Fidelity Management & Research Company LLC, which it said valued the business at over $7BN.

The investment would enable Deliveroo to continue investing in “developing the best proposition for consumers, riders and restaurants”, it said, noting that it would be expanding in on-demand grocery following “rapid” growth over the last year.

Deliveroo added that the Series H investment comes ahead of a “potential” IPO — and said it “reflects strong demand from existing shareholders to invest in the company, given the significant growth potential in the online food delivery sector in which consumer adoption is accelerating”.

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Celebrity video platform Memmo raises $10M

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Memmo.me, a startup allowing users to pay celebrities for personalized video messages, is announcing that it has raised $10 million in Series A funding.

“We’re really excited about our mission to break down these barriers [and help talent] connect one-to-one instead of one-to-thousands,” said co-founder and CEO Gustav Lundberg Toresson.

He added that celebrities are embracing this as a new source of income. It’s particularly appealing during the pandemic, but he predicted that celebrities will still be excited about “making this much money from their living rooms” after the pandemic ends.

The concept probably reminds you of Cameo (indeed, Carole Baskin of “Tiger King” fame has presence on both platforms), but while Cameo is U.S.-based, Memmo was founded in Stockholm, and Lundberg Toresson said its strategy is both global and localized — the company is currently operating localized marketplaces for Sweden, Germany, Finland, Norway, the United Kingdom, Spain, Italy and Canada, as well as a general global market.

“We want to be the place where you can find everyone from world famous talents like a soccer or basketball star, to the local musician down the road,” he said. “It’s all about using localization to help you find who’s most relevant for you, wherever you are.”

The startup says it has been used to send more than 100,000 messages globally, and that sales grew 50% every month between July of last year and January 2021.

The round was led by Left Lane Capital, with the firm’s founder and managing parter Harley Miller joining the Memmo board. Delivery Hero co-founder Lukasz Gadowski, FJ Labs, Depop CEO Maria Raga, Zillow co-founder Spencer Rascoff, former Groupon operations director Inbal Leshem, Voi Technology co-founder Fredrik Hjelm, former Udemy CEO Dennis Yang and Wolt co-founder Elias Aalto also participated.

“We’ve been impressed with the pace at which Memmo has expanded their offering across markets, where localization is critical to unlocking marketplace liquidity,” Miller said in a statement. “The ability to monetize the gap between wealth and fame for talent & celebrities, all the while allowing them to engage deeply with fans, is a trend that was only further underscored by the pandemic.”

Although Left Lane is based in New York, Lundberg Toresson said he was particularly excited about the firm’s marketplace expertise, and that its investment does not signal an imminent U.S. launch.

Memmo has now raised a total of $12 million. The new funding will allow the startup to add new features like live videos and to build out its business offerings, where companies can hire celebrities to create promotional videos for external marketing or internal employee motivation.

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The Landing is bringing shoppable social and collaboration to interior design

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Monetizable mood boards might sound like the moonshot idea that no one asked for, but when you think about it, the vision is already informally happening in various corners of the internet. A young generation of users shops with community in mind, whether that’s buying merchandise from your favorite influencers or giving into those Instagram advertisements after spending way too much time on the grid.

As more users think of shopping as a social, digital-first activity, The Landing, a seed-stage startup coming out of stealth, is hoping to win over those who have an affinity for designing homes and spaces. On The Landing, users can create, and shop from, room designs to help furnish their homes.

Image Credits: The Landing

“There’s no contextually rich, visual shopping destination, where you could curate and discover and share and shop all in one place,” co-founder Miri Buckland said. The Landing hopes to be that destination.

Started by Buckland and Ellie Buckingham, The Landing is launching with $2.5 million in financing, in a round led by Aileen Lee at Cowboy Ventures. Lee will be taking a board seat. Other investors include Dara Treseder, the CMO of Peloton, Manish Chandra and Tracy Sun, the founders of Poshmark, Unshackled, Designer Fund, and Progression Fund.

The Landing began as a pandemic pivot. Buckland and Buckingham were always interested in solving the pain point of contextual furnishing for users, but began by physically moving people into apartments and helping them set up different furniture. Then, the pandemic hit and limited the ability to do high-touch services. Buckingham says that this was “potentially the best forcing function” to focus on what kind of business The Landing wanted to be.

“I don’t need to be the person moving into your apartment with a couch,” she said. “It was about the importance of empowering creativity and empowering individuals to create digital and physical spaces.” That’s when they dropped the moving service business, and instead used furnishing as a vector to solve the problem of contextual and social e-commerce.

It’s a smart idea that has not gone unnoticed. Houzz, a Sequoia-backed home improvement startup, connects users to products from third-party retailers as well as services from architects, designers, or contractors. There’s also Modsy, which has raised north of $70 million to date, which helps users virtually redesign their homes.

Buckingham worked for Modsy when she was at business school, where she first started noticing that she disagreed with the startups’ main thesis.

“Their motto was basically a digital rendition of an existing human service,” she said. “And I came away from the experience not super convinced that the service model was the scalable, future answer to consumerization of access to design.” She noticed that the younger generation was looking for a self-serve, customizable answer, instead.

Miri Buckland and Ellie Buckingham, the co-founders of The Landing.

The Landing is launching with creative tooling capabilities, which allow users to build and design spaces within its platform. In the coming months, the team is focused on adding a social layer atop the design tool, with features like profiles, discovery, fede, and commenting.

The Landing’s Slack channel is currently being used to discuss these features and what is most in-demand from early users.

The founders aren’t worried about a lack of demand, or only being a platform for the few times that people furnish their homes throughout their lifespan. As Buckland pointed out, people browse Zillow all the time, and have Reddit channels about dream homes, creating designs, and more. The startup is aiming to serve that population as well — the dreamers and not just the realists.

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Why F5 spent $2.2B on 3 companies to focus on cloud native applications

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It’s essential for older companies to recognize changes in the marketplace or face the brutal reality of being left in the dust. F5 is an old-school company that launched back in the 90s, yet has been able to transform a number of times in its history to avoid major disruption. Over the last two years, the company has continued that process of redefining itself, this time using a trio of acquisitions — NGINX, Shape Security and Volterra — totaling $2.2 billion to push in a new direction.

While F5 has been associated with applications management for some time, it recognized that the way companies developed and managed applications was changing in a big way with the shift to Kubernetes, microservices and containerization. At the same time, applications have been increasingly moving to the edge, closer to the user. The company understood that it needed to up its game in these areas if it was going to keep up with customers.

Taken separately, it would be easy to miss that there was a game plan behind the three acquisitions, but together they show a company with a clear opinion of where they want to go next. We spoke to F5 president and CEO François Locoh-Donou to learn why he bought these companies and to figure out the method in his company’s acquisition spree madness.

Looking back, looking forward

F5, which was founded in 1996, has found itself at a number of crossroads in its long history, times where it needed to reassess its position in the market. A few years ago it found itself at one such juncture. The company had successfully navigated the shift from physical appliance to virtual, and from data center to cloud. But it also saw the shift to cloud native on the horizon and it knew it had to be there to survive and thrive long term.

“We moved from just keeping applications performing to actually keeping them performing and secure. Over the years, we have become an application delivery and security company. And that’s really how F5 grew over the last 15 years,” said Locoh-Donou.

Today the company has over 18,000 customers centered in enterprise verticals like financial services, healthcare, government, technology and telecom. He says that the focus of the company has always been on applications and how to deliver and secure them, but as they looked ahead, they wanted to be able to do that in a modern context, and that’s where the acquisitions came into play.

As F5 saw it, applications were becoming central to their customers’ success and their IT departments were expending too many resources connecting applications to the cloud and keeping them secure. So part of the goal for these three acquisitions was to bring a level of automation to this whole process of managing modern applications.

“Our view is you fast forward five or 10 years, we are going to move to a world where applications will become adaptive, which essentially means that we are going to bring automation to the security and delivery and performance of applications, so that a lot of that stuff gets done in a more native and automated way,” Locoh-Donou said.

As part of this shift, the company saw customers increasingly using microservices architecture in their applications. This means instead of delivering a large monolithic application, developers were delivering them in smaller pieces inside containers, making it easier to manage, deploy and update.

At the same time, it saw companies needing a new way to secure these applications as they shifted from data center to cloud to the edge. And finally, that shift to the edge would require a new way to manage applications.

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