Is it better for Glovo to invest in developing our own logistics network or focus on partnering with existing local delivery services?

Introduction

The key trade-off we're examining is whether Glovo should invest in developing our own logistics network or focus on partnering with existing local delivery services. This decision is critical for Glovo's growth strategy and operational efficiency. I'll analyze this trade-off by considering the business context, user impact, technical feasibility, resource allocation, and timeline implications.

Step 1

Clarifying Questions (3 minutes)

• Based on Glovo's current market position, I'm thinking this decision could significantly impact our growth trajectory. Could you provide more context on our current market share and primary competitors?

Why it matters: Helps assess the urgency and potential impact of this decision Expected answer: Moderate market share with 2-3 strong competitors Impact on approach: Would influence whether we prioritize rapid expansion or focus on strengthening existing markets

• Considering our business model, I assume we operate on a commission-based structure. Can you confirm our current revenue model and any plans to diversify income streams?

Why it matters: Affects the financial implications of each option Expected answer: Primarily commission-based with plans to explore additional revenue streams Impact on approach: Would influence the cost-benefit analysis of building our own network vs. partnering

• Regarding user experience, I'm curious about our current customer satisfaction rates and main pain points. Could you share insights on these aspects?

Why it matters: Helps identify which option might better address user needs Expected answer: Moderate satisfaction with delivery speed and reliability as key concerns Impact on approach: Would guide the focus of improvements for either option

• From a technical standpoint, I'm wondering about our current capabilities in logistics management. What's our level of expertise in this area?

Why it matters: Determines the feasibility and potential challenges of building our own network Expected answer: Limited in-house expertise but strong engineering team Impact on approach: Would influence the timeline and resource allocation for developing our own system

• Considering resource allocation, I'm thinking this could be a significant investment. What's our current budget flexibility for a project of this scale?

Why it matters: Helps determine the viability of each option based on financial constraints Expected answer: Moderate budget flexibility with potential for increased allocation if ROI is clear Impact on approach: Would impact the scope and timeline of implementation for either option