The exodus of companies continues: Glovo leaves Argentina

Glovo served a market of 7 million clients in the country (REUTERS / Juan Medina)

The Glovo delivery app leaves Argentina, as confirmed this noon. The news came after the announcement of more restrictions on the dollar and that, this week, the Falabella chain announced that it intends to leave the country and joined the list of more than 10 multinationals that announced that they will no longer operate locally.

“Based on the news of public knowledge, the company affirms that Glovo effectively sold its operations in Latin America to Delivery Hero, and in addition, it will stop operating in Argentina. The decision has been defined by the parent company to focus growth and presence in other key markets of the company, ”the company explained in a statement.

Glovo sold its Latin American operations to Delivery Hero and will stop operating in Argentina. The decision was defined by the parent company to focus growth on other key markets of the company

“Glovo Argentina understands the local impact of the announcement and is deeply grateful to its entire value chain in the effort to consolidate locally since its arrival in the country in 2018”they explained.

“Argentina, the Dominican Republic and Panama will continue operating until October 2020.”

Delivery Hero owns OrdersYa and, as he may have learned Infobae, The delivery men are offered to continue in that company, now with the red backpack instead of the yellow one that identifies Glovo. They were sent a message with a link so they can register preferentially. Glovo has some 3,000 delivery people in CABA and the province of Buenos Aires and 70 of its own employees.

The app that is now leaving the country – connecting consumers, businesses and delivery people – was born in Barcelona in 2015 and was present in 140 cities in 20 different countries. In Argentina it began to operate in early 2018, when it became one of the first to offer delivery services through mobile applications.

Delivery Hero acquired Glovo's Latin American business for USD 272 million (REUTERS / Fabrizio Bensch / File Photo)

Delivery Hero acquired Glovo’s Latin American business for USD 272 million (REUTERS / Fabrizio Bensch / File Photo)

In the local market it operated in eight cities: Federal Capital; Buenos Aires (GBA North, GBA West, GBA South, La Plata, Mar del Plata and Bahía Blanca), Santa Fe (Rosario and Santa Fe); Córdoba, Mendoza, Neuquén, Salta.

“Argentina is located in the top 5 of Glovo countries worldwide and Buenos Aires is the headquarters of operations for the LATAM region, also operating in Peru, Ecuador, Panama, Guatemala, Costa Rica and the Dominican Republic”, the company detailed weeks behind. Now it has sold the entire regional operation including that of Argentina, where the brand will no longer have a presence.

In Argentina, Glovo began operating in early 2018 and became one of the first to offer delivery services through mobile applications

Delivery Hero acquired Glovo’s Latin American business for USD 272 million, after a wave of agreements in the food delivery sector. The Berlin-based company will add Peru, Ecuador, Costa Rica, Honduras and Guatemala to its existing markets, it said in a statement Wednesday.

Delivery Hero CEO Niklas Ostberg noted in July that he was open to a deal with Glovo or rival Rappi, saying he would not hesitate to look for good opportunities. The decision follows a deal reached last month by Delivery Hero to buy the Instashop food delivery service, expanding its base in the Middle East and North Africa, as well as a majority stake in South Korea’s Woowa Brothers Corp. in December.

Worldwide, delivery applications saw demand growth during the pandemic.  REUTERS / Valentyn Ogirenko

Worldwide, delivery applications saw demand growth during the pandemic. REUTERS / Valentyn Ogirenko

Around the world, industry companies saw an increase in orders during the pandemic, fueled by isolation measures that prevented their customers from leaving their homes.

Exit of companies from Argentina

The departure of the Glovo company from the local market occurs in a context of exodus of foreign companies. This year, the Chilean airline Latam, which had been in the domestic business for more than 15 years, and the airlines Qatar Airways, Emirates and Air New Zealand left the country..

Too Chilean chains Falabella and Sodimac announced their plans to stop operating in Argentina. In the coming months, the Sodimac shopping centers in Villa Tesei and Malvinas Argentinas will close their doors; and two Falabella stores – which had settled in the country in 1993 – in downtown Buenos Aires and in the Tortugas Open Mall.

In recent months, there was a massive exit of foreign companies

In recent months, there was a massive exit of foreign companies

To the list of companies, there are several auto parts companies, who left the country or who reduced their business. The BASF company will move the production of automotive paints to Sao Bernardo do Campo, in Brazil, in the second half of 2021. While the American chemist Axalta closed its factory and the administrative offices of Escobar, where about 100 people worked, and the French auto parts maker Saint Gobain Sekurit moved its windshield production to Brazil.

In mid-July, the French laboratory Pierre Fabre announced the sale of its active pharmaceutical ingredients plant, located in the province of Buenos Aires, to the Argentine laboratory Sidus. Other cases are Nike, which left its local business in the hands of the Mexican Axo. And Gerresheimer, a company of German origin that produced packaging for the pharmaceutical sector, which sold its operation to the local IMAP and left the country.

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