Business Model of Glovo : Strategy & Revenue Streams

Business Model of Glovo is a leading on-demand delivery platform that brings anything—from food and groceries to pharmaceuticals—right to your doorstep. Founded in Barcelona, Glovo has expanded rapidly across Europe, Africa, and Latin America by promising ultra-fast deliveries and a user-friendly experience.

Its business model is worth studying because it combines hyperlocal logistics, dynamic pricing, and a marketplace approach that many startups aspire to replicate. If you’re exploring the potential of launching a delivery app or building a Business Model of Glovo, understanding how Glovo operates and monetizes is the first step to creating a sustainable business.

What is Glovo & How It Works

Glovo is an all-in-one delivery platform that solves the problem of getting products from local stores, restaurants, and pharmacies to customers quickly—usually within 30–60 minutes.

What Problem Does Glovo Solve?
Many consumers lack time or transportation to pick up everyday items. Glovo bridges this gap by connecting them with local couriers who shop and deliver on their behalf. It’s not limited to food—users can order nearly anything legal and available nearby.

Who Uses Glovo?
Glovo serves:

• Busy professionals needing meals or essentials on demand
  
• Families ordering groceries
  
• Businesses arranging urgent deliveries
  
• Restaurants and stores that want a wider customer reach
  

How Does the App Operate?
Here’s how Glovo works in simple terms:

1. Browse & Order – Customers select products or meals in the app.
   
2. Payment – Orders are paid digitally via card, wallet, or vouchers.
   
3. Matching – The system assigns the request to an available courier (“Glover”).
   
4. Pickup – The courier collects the items from the merchant.
   
5. Delivery – The courier navigates to the customer’s location.
   
6. Tracking – Customers track the courier in real-time and receive updates.
   

This seamless experience is powered by Glovo’s marketplace engine, route optimization technology, and a large network of delivery partners.

Read More : What is Glovo App and How Does It Work?

Target Audience Behind Glovo App

Understanding Glovo’s target audience is key to grasping why its business model succeeds. Here’s a closer look at who uses the platform:

• Urban Millennials and Gen Z
  
  • Typically aged 20–40
    
  • Comfortable with apps and digital payments
    
  • Expect fast delivery and real-time tracking
    
• Busy Professionals
  
  • People working long hours with little time to shop
    
  • Frequently order meals, office supplies, or last-minute items
    
• Families
  
  • Parents ordering groceries, pharmacy products, and prepared food
    
  • Value convenience and time-saving solutions
    
• Local Merchants and Restaurants
  
  • Small and mid-sized businesses that use Glovo to expand their reach
    
  • Benefit from exposure to a large customer base without investing in their own delivery fleet
    
• Corporate Clients
  
  • Companies scheduling deliveries for staff or clients
    
  • Use Glovo for bulk orders, catering, or urgent errands
    

This broad audience allows Glovo to diversify its revenue streams and maintain high order volumes across different product categories.

Features that Support the Business Model

Glovo’s success relies on a set of core features designed to generate revenue and improve the customer experience. Here are the most important ones:

1. Multi-Category Marketplace
   
   • Unlike many delivery apps limited to food, Glovo lets users order groceries, pharmacy items, gifts, and more in one app.
     
   • This increases basket size and frequency of orders.
     
2. Real-Time Tracking
   
   • Customers can see their courier moving on the map.
     
   • This transparency builds trust and reduces support inquiries.
     
3. Scheduled and Instant Deliveries
   
   • Users can choose ASAP delivery or schedule ahead.
     
   • Flexible timing appeals to businesses and busy households.
     
4. Subscription Program (Glovo Prime)
   
   • Customers pay a monthly fee for unlimited free deliveries.
     
   • Creates recurring revenue and higher loyalty.
     
5. Promotions and Sponsored Listings
   
   • Merchants pay for visibility on the app’s homepage or in search results.
     
   • Helps restaurants and stores attract more orders.
     
6. In-App Wallet and Payment Integrations
   
   • Multiple payment options (credit cards, digital wallets, vouchers).
     
   • Simplifies checkout and increases conversion.
     
7. Courier App with Route Optimization
   
   • Couriers get smart routing and order batching.
     
   • Faster deliveries improve customer satisfaction and efficiency.
     

These features work together to drive engagement, retention, and profitability—while making the app indispensable for users and partners alike.

Read More : Best Glovo Clone Scripts in 2025: Features & Pricing Compared

Revenue Streams of Glovo

Glovo combines multiple income sources to create a resilient business model. Here’s a clear table showing the main revenue streams:

Revenue Stream	How It Works
Delivery Fees	Customers pay a fee per delivery, which varies by distance, speed, and demand.
Service Fees	A percentage added to the subtotal of each order.
Merchant Commissions	Restaurants and stores pay a commission (often 15–30%) per order received via Glovo.
Glovo Prime Subscriptions	Monthly subscription fees for unlimited free deliveries.
Sponsored Listings	Merchants pay for advertising placement in the app to boost visibility.
Convenience Fees	Small extra charges for express delivery or special handling.
B2B Deliveries	Fees from corporate clients who schedule bulk or recurring deliveries.

Quick Explanations:

• Delivery Fees
  
  • Base delivery charge varies by city.
    
  • Surge pricing may apply during peak hours.
    
• Service Fees
  
  • Typically a small % of the order value.
    
  • Covers platform maintenance and support.
    
• Merchant Commissions
  
  • Primary revenue driver.
    
  • Incentivizes Glovo to bring more orders to partners.
    
• Glovo Prime
  
  • Recurring revenue stream.
    
  • Increases order frequency by reducing per-order costs for loyal customers.
    
• Sponsored Listings
  
  • Paid promotions help merchants rank higher in search.
    
  • Encourages more orders from featured partners.
    
• Convenience Fees
  
  • Add-ons for premium experiences, e.g., express delivery.
    
• B2B Deliveries
  
  • Partnerships with companies for scheduled deliveries or office supplies.
    

This multi-pronged monetization strategy has allowed Glovo to grow rapidly while maintaining flexibility in different markets.

Read More : Revenue Model of Glovo: How the Delivery App Makes Money in 2025

What It Costs to Operate Glovo

Building and operating an on-demand delivery marketplace involves substantial costs across several categories. Here are the main expenses Glovo manages:

• Courier Payments
  
  • The largest expense.
    
  • Couriers are usually independent contractors paid per delivery and sometimes receive incentives or bonuses during peak times.
    
• Technology Development and Maintenance
  
  • App and platform development.
    
  • Real-time tracking, route optimization, and payment processing.
    
  • Ongoing updates and cybersecurity.
    
• Customer Support and Operations
  
  • 24/7 support teams for customers, couriers, and merchants.
    
  • Dispute resolution and order monitoring.
    
• Marketing and Promotions
  
  • User acquisition campaigns.
    
  • Discounts and referral bonuses to drive orders and sign-ups.
    
  • Brand partnerships and advertising.
    
• Logistics and Warehousing (for Dark Stores)
  
  • In some cities, Glovo operates micro-fulfillment centers to deliver groceries faster.
    
  • Costs include leasing, staffing, and inventory management.
    
• Payment Processing Fees
  
  • Transaction costs charged by payment gateways and financial partners.
    
• Regulatory Compliance
  
  • Legal and licensing expenses for operating in multiple countries.
    
  • Data protection compliance (e.g., GDPR in Europe).
    
• General & Administrative
  
  • Salaries for full-time staff.
    
  • Office expenses, insurance, and other overhead.
    

Understanding this cost structure is essential if you’re planning to launch a similar delivery platform, as margins can be tight without careful optimization.

2024–2025 Innovations or Updates

Glovo continues to evolve its business model to stay competitive and improve profitability. Here are some notable recent updates and innovations:

• Expansion of Dark Stores
  
  • Glovo has doubled its network of dark stores (micro-warehouses) in key cities.
    
  • These stores allow for 15–30 minute grocery delivery, boosting customer loyalty and average order value.
    
• Sustainability Initiatives
  
  • Increased investment in electric bikes and eco-friendly packaging.
    
  • This helps reduce the platform’s carbon footprint and aligns with consumer preferences.
    
• Dynamic Pricing Enhancements
  
  • Improved algorithms to adjust delivery fees in real time.
    
  • Balances demand, supply, and delivery times more efficiently.
    
• More B2B Partnerships
  
  • Growth in partnerships with pharmacies, electronics retailers, and corporate clients.
    
  • Adds new revenue channels beyond traditional restaurants.
    
• Loyalty Programs and Tiered Rewards
  
  • Glovo Prime subscribers can now unlock higher discounts and perks based on order frequency.
    
  • This gamification encourages repeat business.
    
• AI-Based Forecasting
  
  • Investment in machine learning tools to predict order volumes, optimize courier availability, and reduce delivery times.
    
• Localized Personalization
  
  • New features to tailor promotions and featured merchants to each city or neighborhood.
    

These updates show how Glovo adapts to changing market dynamics and continually improves monetization and customer retention.

Takeaways for Startup Founders

If you’re considering building your own on-demand delivery platform, Glovo offers several valuable lessons:

• Start with a Focused Niche
  
  • Glovo didn’t try to deliver everything everywhere from day one.
    
  • It built traction in food delivery, then expanded to groceries, pharmacies, and B2B services.
    
  • Focus on one or two core categories before scaling horizontally.
    
• Prioritize User Experience
  
  • Real-time tracking, reliable delivery times, and simple checkout are non-negotiable.
    
  • Any friction in ordering or payment will hurt repeat usage.
    
• Diversify Revenue Streams
  
  • Relying solely on delivery fees isn’t sustainable.
    
  • Subscription models, advertising, and B2B partnerships can strengthen your cash flow.
    
• Optimize Courier Efficiency
  
  • Fast delivery is the product.
    
  • Invest early in route optimization, batching, and clear communication tools for your delivery partners.
    
• Stay Agile with Pricing
  
  • Dynamic pricing helps balance supply and demand.
    
  • Flexible fee structures can also improve profitability during peak hours.
    
• Leverage Local Partnerships
  
  • Partner with local merchants to drive adoption and build community trust.
    
  • Small businesses appreciate platforms that bring them new customers.
    

Read more : Reasons startup choose our glovo clone over custom development

Why Build with Miracuves?

At Miracuves, we specialize in ready-made delivery app solutions that incorporate everything you’ve read about here:

• Real-time tracking
  
• Multi-category ordering
  
• Dynamic pricing tools
  
• Subscription management
  
• Merchant onboarding portals
  

If you want to build a Glovo-like app without spending years in development, our team can help you launch faster and smarter.

Explore our Uber or Postmates  as starting points—or request a custom solution tailored to your vision.

Conclusion :

The business model of Glovo shows how a delivery platform can scale rapidly by combining a multi-category marketplace, dynamic pricing, and subscription revenue. By focusing on user experience, efficient logistics, and diversified income streams, Glovo has built a brand that customers and merchants rely on daily.

If you’re ready to create your own on-demand delivery app, you don’t have to start from scratch. At Miracuves, we help founders launch scalable, feature-rich platforms that rival the biggest names in the market.

Whether you want to build a Glovo or something entirely unique, our ready-made solutions can save you time, reduce development costs, and give you a competitive edge.

Ready to bring your idea to life?

Contact Miracuves today to schedule a free consultation, or explore our on-demand delivery app solutions to see how we can help you launch faster.

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