Glovo, the on-demand delivery platform, has announced a significant milestone in Nigeria, revealing that over 6,000 local vendors have collectively generated ₦71 billion ($42 million) in revenue through its platform since its 2021 launch. The impressive figure was disclosed at the company's "Future of Commerce 2025" summit in Lagos, underscoring Glovo's substantial growth within Nigeria's competitive e-commerce landscape and its ambitious plans to expand beyond food delivery into a comprehensive retail marketplace.

The Nigerian vendors represent a crucial segment of Glovo's African operations, accounting for 13% of the 45,000 businesses supported by the platform across the continent. Since its entry into Africa in 2018, Glovo has invested a considerable €200 million, establishing operations in 75 cities across six countries: Côte d’Ivoire, Kenya, Morocco, Nigeria, Tunisia, and Uganda.

In Nigeria, Glovo's footprint extends across 11 cities, with Lagos serving as the primary hub for its activities. The company also highlighted its commitment to its delivery personnel, with its 2,400 riders across Nigeria earning two to three times the national minimum wage of ₦70,000 ($43). This compensation structure is comparable to what competitors like Chowdeck offer their extensive 10,000-rider network. As a testament to rider dedication, an Abuja-based rider was recognized at the summit for completing an astounding 14,000 deliveries since 2021.

Lamide Akinola, General Manager of Glovo Nigeria, emphasized the company's role in fostering a robust digital economy. "We’re fostering a tech-driven, inclusive marketplace that scales Nigerian SMEs through data, logistics, and financial tools," Akinola stated at the event. This strategic focus on empowering small and medium-sized enterprises (SMEs) aligns with broader efforts to leverage technology for economic development. Glovo's strategic agility was also evident in its decision to exit the Egyptian and Ghanaian markets due to profitability challenges, a move that echoes similar withdrawals by other players like Jumia Food amid economic headwinds.

A significant driver of Glovo's recent success has been the diversification of its offerings. The platform reported a remarkable 76% surge in quick-commerce Gross Merchandise Value (GMV) in 2024. This growth is largely attributed to its expansion beyond food items into categories such as electronics, beauty products, and pharmaceuticals, with 20% of users now making non-food purchases. This trend mirrors the evolution of other food delivery startups, both globally and locally, as they transform into broader marketplaces for a wider array of essentials.

Furthermore, Nigeria's ongoing push towards a cashless economy is reflected in Glovo's transaction data. Cash payments for Glovo orders have seen a dramatic decline, dropping from 88% in 2021 to just 39% today, representing a 55% reduction. Unlike some competitors, such as Chowdeck and FoodCourt, which have limited cash payments to mitigate losses from uncompleted orders or driver fraud, Glovo's continued acceptance of cash may be a strategic move to build user trust and cater to a wider demographic.

The "Future of Commerce 2025" summit also served as the launchpad for Glovo's Yellow Effect Report. The report claims that the platform has facilitated €1 billion in economic value for 45,000 African businesses, with 90% of them being SMEs, between 2020 and 2024. The summit featured insightful fireside chats and panel discussions with executives from prominent businesses like Chicken Republic, Burger King, Sweet Sensation, and financial providers such as Moniepoint and WEMA Bank, all exploring the critical topic of SME financing. 

Popular vendors and virtual kitchen owners, including 500Chow, Toasties, and FireWood Jollof, shared compelling testimonials, highlighting how Glovo's platform has been instrumental in the distribution of their products by effectively addressing logistics challenges.