Global on-demand delivery platform Glovo has identified Africa as a potential quick commerce powerhouse, with executives predicting the continent could become the world's largest market for rapid delivery services.
Dima Rasnovsky, who oversees Glovo operations across six African markets, told TechCabal in early May that the continent's unique challenges could become the foundation for a distinctly African commerce model. The executive believes Africa may bypass traditional warehouse-heavy e-commerce systems entirely.
"Africa skipped desktop and moved straight to mobile. Quick commerce can become the same leap for e-commerce," Rasnovsky said.
Navigating Complex Urban Landscapes
In cities like Lagos, Nigeria, and Nairobi, Kenya, delivery operations face significant operational challenges. These include traffic congestion that can last hours, streets that digital mapping systems struggle to recognize, and consumers operating within largely informal economies.
Rather than viewing these factors as obstacles, Glovo sees them as opportunities to develop delivery systems tailored specifically for African markets. The company's approach focuses on dense neighborhood stores, mobile money infrastructure, and merchants positioned close to customer locations.
Economic Realities and Market Expansion
The optimism comes amid challenging economic conditions for delivery platforms across Africa. Companies face volatile fuel prices, thin profit margins, and pressure to maintain affordable delivery costs while retaining riders and merchants on their networks.
Glovo's strategy emerges as delivery platforms across the continent pursue profitability after years of expansion funded by discounts and venture capital. With competitors like Jumia Food exiting markets, platforms are diversifying into groceries, pharmacy deliveries, and courier services to increase order volumes.
According to Rasnovsky, margin pressures remain intense across African markets. "Margins are very challenging in Africa," he noted, pointing to density as the primary solution for improving operational efficiency.
Infrastructure Advantages
Glovo's assessment highlights Africa's existing advantages for quick commerce development. The continent already possesses dense urban centers, extensive networks of informal merchants, and rapidly expanding smartphone penetration rates.
What Africa lacks, according to Rasnovsky, is mature e-commerce infrastructure similar to European or American markets. This gap could enable African consumers to transition directly to fast local delivery services rather than adopting traditional warehouse-based online retail systems.
The quick commerce model involves customers placing orders through mobile applications, with riders collecting items from nearby merchants for delivery within minutes. Success depends heavily on achieving sufficient density of merchants and customers within close proximity to make operations economically viable.
Recent currency stability in key markets including Kenya and Nigeria has provided some relief for merchants dealing with high import, logistics, and fuel costs. However, African consumers remain highly price-sensitive, limiting platform pricing flexibility for delivery services.
As platforms navigate these economic pressures, the focus on quick commerce represents a strategic shift toward services that could generate more consistent revenue streams compared to traditional restaurant delivery. The success of this model will largely depend on achieving the operational density needed to make rapid delivery economically sustainable across African markets.