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Spanish carpool app Cabify bets on grocery delivery amid e-commerce boom, Auto News, ET Auto


Spanish carpool application Cabify

MADRID:

The Spanish carpool app Cabify will allow users to shop directly from their homes in nine cities, including Barcelona and Madrid, through a partnership with online supermarket delivery company Lola Market, the companies said on Wednesday.

A new generation of startups across Europe are looking to consolidate market share after closures boosted demand for grocery delivery, including Getir in Turkey and Gorillas in Berlin, both of which have expanded beyond borders.

Cabify, which also offers rental of electric scooters and electric mopeds, did not provide financial projections for the new venture, but said it would help avoid unnecessary travel, reduce emissions and allow more use. resource efficient.

“E-commerce in Spain has experienced double-digit growth in recent years,” said Lucia Chavarri, vice president of new business at Cabify. “It would make sense for us to maintain above average growth once we get established.”

By selecting the ‘Super’ option from the app menu, Cabify users will be able to request goods from supermarkets like the Spanish chain Dia and the German and French multinationals Lidl and Carrefour, a first for the multi-company. mobility.

“The change is here to stay, more and more users will want to buy online,” said Chavarri. “The idea is that we can grow in a market where until now we had no presence.”

Madrid-based venture capital firm Seaya Ventures and Japanese online retailer Rakuten – also a lead investor in the Lyft ridesharing app – are Cabify’s main investors, according to a source close to the company.

E-commerce in supermarkets and grocery stores was already growing by around 38% a year before the pandemic doubled the rate of expansion of the sector, said Chavarri, citing data from Spain’s competition watchdog CNMC. .

Rival Spanish delivery app Glovo, which has also entered the fast grocery delivery business, said last month it bought Lola Market in Spain and Mercadao in Portugal.

Glovo said he expects the division’s gross annual transaction value to exceed € 1 billion by the end of 2022, having surpassed € 300 million by the end of 2021.

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The market is driven by factors such as the wide range of vehicles with a single subscription and the financial support of potential driver service providers, the study noted.


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