Glovo, an e-commerce company, has recently launched a new product that aims to tap into a largely untapped market: small and medium-sized enterprises (SMEs) in the retail and restaurant industries. These businesses make up a significant portion of the local retail sector, yet many have not fully embraced e-commerce as a way to improve convenience for both themselves and their customers. Glovo Local aims to change that.
Glovo Local is an all-in-one hub where local businesses can choose solutions based on their specific needs and wants through a single site. These solutions include digital and operational services for their own channels and stores, as well as learning and development opportunities with dedicated tutorials and support to help guide them through their digital journey. The goal of Glovo Local is to help catalyze the online growth of SMEs and enable more of them to have a digital presence in Kenya.
According to Caroline Mutuku, the General Manager of Glovo Kenya, the company currently has over 4,000 businesses registered on the Glovo app and aims to increase that number by 2023. With the challenges faced by businesses due to the COVID-19 pandemic, many are struggling to stay afloat. By signing up for Glovo Local, businesses can reach more customers and accelerate their path to growth and sustainable profitability.
In today’s digital age, we have seen the growth of various sectors as they leverage technology to improve the experiences of both customers and vendors, ultimately improving convenience for all. The retail sector, in particular, has been transformed by the rise of e-commerce, making it easier for retailers to reach consumers and improving convenience for both parties.
However, there is still much room for improvement in terms of digital transformation in Africa. Digital transformation is not a destination, but a journey, and Africa has only just begun its digital transformation journey, which was further accelerated by the onset of the pandemic. The launch of Glovo Local comes on the heels of research commissioned by Glovo in nine markets, including Kenya. This research found that 90% of respondents believe understanding the market and customers’ needs is the most critical factor in helping businesses remain relevant.
Additionally, 79% of businesses believe that a technology partner will help them stay competitive as the cost of living increases globally, and 86% of businesses indicated that they are changing their strategies more frequently to reach more customers. The research also revealed that 62% of businesses are currently in survival mode, but 92% are optimistic that they will achieve significant growth in the next 12 months.
Kenya has recently adopted a digital economy blueprint designed to further develop the ICT sector and e-commerce activity. According to UNCTAD, the proportion of Kenyans aged 15 and above with a financial account increased from 23.6% in 2014 to 41.2% in 2017, and mobile phone subscriptions have also seen a significant increase. These factors, along with the adoption of e-commerce, have all contributed to the growth of the sector in Kenya.
Glovo Local is poised to take advantage of this growth and provide valuable resources to SMEs looking to improve their digital presence. By offering a one-stop-shop for digital solutions and support, Glovo is helping local businesses navigate the often-complex world of e-commerce and improve their chances of success. Whether a business is just starting out or looking to expand, Glovo Local is an excellent resource for SMEs looking to boost their growth in the digital age.