After Weeks of Uncertainty, On-demand Delivery Startup Glovo Resumes Services in Cairo

Via MENAbytes.

According to MENAbytes, the European on-demand delivery startup, Glovo, has returned to Egypt, launching its services in some of Cairo’s districts. A month ago, we reported Glovo’s abrupt exit of the Egyptian market, and how the Egyptian Competition Authority (ECA) ordered the Spanish startup to return after allegations of anti-competition and monopoly practices.

Many in Egypt were shocked by Glovo’s plan to exit in late April of this year. The startup had been doing quite well with a formidable grip on the market, achieving a double-digit share in Egypt’s highly competitive delivery market, and even had plans for further expansion. Once Glovo unexpectedly decided to cease operations, the app instructed customers to redirect to Otlob, which led many to wonder about the real reasons for their doing so.

Earlier this month, the ECA accused Glovo and Delivery Hero, a German-based food-delivery company that owns many subsidiaries in the MENA region, such as Otlob, of reaching a market allocation agreement that led to the first’s exit. It is worth mentioning that Delivery Hero has shares in Glovo as well.

The ECA went on to add that the exit would result in a significant loss of jobs and investments, concluding with an ultimatum to Glovo, ordering it to stop liquidating its business and to resume operations in Egypt.

To this moment, Glovo has not made any public comments, however, the app seems to be working in some parts of Cairo, including Maadi and Heliopolis, and by next month, the company will once again expand to Alexandria.

On social media, many of Glovo’s delivery partners have posted that they have been receiving messages from the Spanish company about the resumption of services in Cairo.

WE SAID THIS: After this dramatic turn of events, what do you think will happen next?