Glovo, a quick commerce startup, has recently dipped its toes into advertising. The platform showed an ad for Jollof+, a savings product, to a user who made a purchase on Glovo.
This move comes as rival Chowdeck is also working on a similar service, leading to heightened competition for Nigerian users’ attention.
As Nigeria’s young population increasingly joins the workforce, there’s a growing demand for convenience. Glovo and other startups have tapped into this need by offering food delivery and logistics services. However, these businesses face challenges such as high inflation and rising operational costs due to the removal of fuel subsidies in May 2023.
To cope, companies like Glovo are innovating. For instance, Glovo has invested in electric bikes, which are more cost-effective to maintain than petrol-powered bikes.
Expanding into advertising could be another way for Glovo to boost revenue and strengthen its market position. Currently, Glovo offers advertising through its Glovo Partner program, but opening it up to more businesses could be a significant advantage.
Though Glovo’s user numbers are not public, the company’s visible presence in Lagos suggests its user base is substantial, potentially rivaling Chowdeck’s 500,000 users.
Glovo’s advertising efforts began in September 2023 with the launch of Glovo Ads, aimed at promoting brands, restaurants, and shops through in-app banners, sponsored searches, and off-app programmatic ads.
If successful, this advertising service could set a precedent for food and grocery delivery startups and provide a new revenue stream in an industry where investors are keen to see returns.
Ultimately, customers stand to benefit the most. The competition among companies to deliver better results could lead to more personalized experiences for users.
