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Glovo is planning an expansion in Ukraine and will spend 7 million euros on the development of a network of darkstores

By the end of the year, 21 Glovo Express darkstores (microfillment centers) will operate in Ukraine. Investments in them will amount to EUR 7 million.

Currently, in Ukraine, Glovo has 14 logistics centers in five cities with a population of one million: Kiev, Odessa, Kharkiv, Dnieper and Lviv.

"By the end of the year, it is planned to expand the Glovo Express network to 21 locations", - said Dmitry Rasnovsky, CEO of Glovo in Ukraine during the presentation.

“We are distributing investments into several stages. The first is the launch of 21 Glovo Express locations to test a working model. At the second stage, we plan to increase the number of microfillification centers, and the final one is sufficient coverage in cities for delivery in 15 minutes,” - said D. Rasnovsky.

The company previously planned to open 30 such locations. Glovo representatives were unable to explain the reason for the change of plans, but explained that some of the openings will be postponed to the first quarter of 2022.

According to Dmitry Rasnowski, investments in the expansion of the network of darkstores in Ukraine will amount to approximately EUR 7 million. However, the company has not indicated how much it costs to invest in one facility, noting that it depends on the location. For example, some locations did not even require cosmetic repairs, so company employees were able to start working right away.

Currently, the coverage of Glovo Express in Kiev is around 60 percent. It takes ten points to fully cover the city, and about thirty for ultrafast delivery, noted Dmitry Rasnowski. According to him, the Q-commerce trend in the world is actively developing and that is why Glovo, instead of delivering goods from partner stores, decided to develop its own MFC (microfillment centers) segment. The company plans to increase coverage in all cities where such centers operate, up to 80%.

“The development of the Q-Commerce direction is our priority and we already have the first positive effects of work. The number of orders from our locations is growing by 30% every week, and two locations are already receiving consistently from 150 orders per day,” - said Rasnovsky.

It is noted that according to the company, now the largest number of orders in the Glovo Express category falls on the evening, and the average check is 230 UAH (7,49 Eur).

Let's remind that Glovo company launched the first dark store in Ukraine in July 2021 in Kiev. In the darkstores of the company, there are products of the following categories: groceries, sweets and snacks, fruits and vegetables, meat and sausages, fish and seafood, dairy products and eggs, goods for children, soft and alcoholic beverages, tobacco products, products for animals and products for personal hygiene.

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