Fascinating technology

How does modern technology help Glovo speed up order delivery in Armenia?

Glovo is one of the world’s leading delivery services and actively uses all the possibilities of modern technology for better work organization and timely delivery. The Spanish company is headquartered in Barcelona and has branches in 25 countries around the world. The company has more than 25,000 associated partners and more than 240,000 couriers. The capitalization of the company is now estimated at more than 2 billion euros.

Nine months ago, Glovo entered the Armenian market and became one of the most popular delivery services.

Oleg Goroshchak, the general manager of Glovo in Armenia, told NEWS.am what kind of orders, including strange and unusual orders, Glovo receives in Armenia, how special algorithms help to speed up the delivery of orders, how the company plans to grow and many more.

Fast food and event tickets: what do people usually order through Glovo?

Via Glovo, you can order almost anything, from perfumes and pet products to appliances, housewares and food. But in Armenia, people most often order ready meals from restaurants and fast food outlets: the most popular items among Armenian users of the platform are fries, burgers, cheese sauces and sweet sodas.

Interestingly, not all countries offer the same range of services as Glovo, as the laws are different everywhere and what is considered standard in one country may be prohibited by law in another.

Oleg Goroshchak noted that in Armenia, for example, Glovo may not deliver drugs from pharmacies, since a special license is required. Other countries have restrictions on the delivery of alcohol or tobacco products or any other merchandise. In each country, Glovo organizes its work according to the law of the country, existing restrictions and other specificities.

“Somewhere business logic can suggest seemingly surprising services. For example, cash delivery was very popular in Latin American countries,” Oleg Goroshchak said.

According to him, in Armenia the demand for ticket delivery for various events has recently increased and the company immediately responded to this demand.

“We have organized fast delivery of tickets for events and are investing in this direction because we see an opportunity here, we see that we can offer customers something that can make their lives easier,” Goroshchak noted.

Cheese sauce and lighter: strange Glovo orders in Armenia

Sometimes Glovo employees receive orders that are more unusual and interesting than the usual dishes from restaurants or cafes. For example, a recent order was cheese sauce and a lighter.

Another customer once ordered thread and needles for a sewing machine and specified exactly what he needed and where he could get them. Glovo also has this option: the customer can even order items that are not available from service partners.

Another customer requested items from the dry cleaner to be picked up and delivered to their home.

Interesting orders come in from time to time, he noted.

As for delivery orders for something illegal, they simply do not pass, special algorithms in the application check all orders before the service accepts and processes them.

Technology listening to the time of customers and couriers

Technology is actively penetrating all areas of business today. And without it, it is simply impossible to imagine a fast delivery organization these days – as well as many other services.

“Building a business that operates in 25 countries and on a scale as large as Glovo would be impossible without a high level of technology. Technology is an important part of what we do and helps us grow faster, many times more fast. That’s why investment in technology remains an important aspect of our business,” said Oleg Goroshchak.

According to him, Glovo uses a wide variety of algorithms that increase the efficiency of the service. This includes order distribution algorithms (which are constantly being improved so that orders can be delivered faster and faster), work organization algorithms in so-called “dark stores”, financial algorithms to improve the user experience, and more.

Oleg noted that if it was up to a human to distribute the orders, it would take a lot longer and require a lot of employees, because there are also a lot of orders. That is why from the very beginning, specialists were tasked with developing an algorithm that would most efficiently handle the allocation of orders.

“Our algorithm continuously collects and analyzes information on the number of orders placed, the number of active couriers, their location and the speed with which our partners can place orders with couriers. The algorithm also takes into account the status of the roads and means of transport courier transport If the customer is far away, it is not a good idea to send a courier on a bicycle, so a courier on a motorcycle or a car will be assigned to the order. is large and cumbersome, it is best handled by a self courier. The algorithm builds the most efficient routes for the couriers so that they can deliver as many orders as possible in the minimum amount of time. saving time and couriers themselves, and, of course, customers.

According to him, the active use of modern technologies and efficient algorithms in Glovo has only one goal – to make the service more efficient and save as much time as possible.

“We put a lot of effort into making sure that as many requests as possible are processed automatically because for these requests – if we’re talking about simple requests – you don’t need human intervention. a human responds to a request, much longer than if the request is handled automatically, in which case a customer, courier or partner can get a response within seconds.We are also constantly working on improving our existing algorithms because he end game. How do you add another 1/10th of efficiency? We play this game every week, every day. We even joke that we measure delivery time in seconds, not minutes. For us , every second counts.

Dark stores: stores without customers

In some countries, Glovo has launched so-called “dark stores”, which are stores without customers, where couriers collect orders. The company already has about 140 such stores around the world, and they have some advantages over traditional supermarkets, said the director of Glovo in Armenia.

Since the company knows what types of goods are in demand by its customers, it can flexibly manage the assortment in its warehouses. In addition, the goods in the warehouse are arranged in such a way as to simplify and speed up the assembly of orders as much as possible. It takes much longer for a courier to find and buy a list of items in a regular supermarket than in a “black store”.

The location of warehouse stores is also not random: to understand in which areas they should be located in order to meet the demand for products as efficiently as possible, experts use special algorithms to analyze order data.

Thanks to such warehouses, Glovo has already introduced the concept of delivery in less than 10 minutes in certain countries.

Glovo has not yet introduced the concept in Armenia, but according to Oleg Goroshchak, they may do so in the future.

The courier earns more than the customer pays for the delivery

To organize a good delivery service it is not enough to have nice algorithms, you also need couriers who will make these deliveries.

Today, Glovo has more than 200 active couriers in Armenia and interest in this business is growing as the demand for deliveries increases. And globally, as noted above, the company has over 240,000 email partners.

Who are the Glovo couriers?

One would assume that an average courier is a young person studying at university and working part-time in his spare time. However, this is not the case: men and women work as couriers at Glovo, and they are of different ages and professions. For some it is only a part-time job, for others it is their main occupation.

Interestingly, earnings from a courier can be very attractive to many people in Armenia. Although delivery is very cheap for customers – by the way, cheaper than with any other delivery service – the courier receives a lot more.

“The courier’s income per order does not depend on how much the customer paid to deliver that order. We have a slightly different business model,” Oleg Goroshchak said.

Robots and drones instead of human couriers?

In many countries, delivery services are trying to take a step closer to modern technology and are starting to use robots or drones instead of human couriers. It is believed that this will help to speed up delivery even more.

According to Oleg Goroshchak, there are no plans to use drone couriers in Armenia so far, but they may appear in the future. For now, the first step towards introducing new technologies and concepts in Armenia will be to open “dark shops” and “dark kitchens”.

Not just Yerevan and Gyumri: Will Glovo expand its geography into Armenia?

Glovo is currently only available in Yerevan and Gyumri. In both cities, the service is in high demand, so experts are planning to expand the geography of the company and open branches in other cities as well so that more people have access to quality delivery services. . In which cities the company will come soon will be known a little later.

Also, as Oleg Goroshchak said, the company plans to extend working hours in the cities of Armenia: so far the service does not work 24/7, but the company plans to make every effort to obtain such a schedule. The company has ambitious plans to connect new partners and hold big promotions, which will make the service more recognizable in the country.

According to Goroshchak, currently more than 5% of the Armenian population has already installed the Glovo application. Moreover, two out of three people, who have downloaded the Glovo application, will soon be ordering, which is true not only in Armenia but also in any other country. Additionally, over 40% of Glovo users stay with the company for at least several months.

It is estimated that the expansion of Glovo will bring many benefits to its partners and potential customers, who will be able to access more products from the comfort of their homes, as well as to couriers, who will have more orders and increase their income.

“The Glovo platform brings businesses, customers and couriers together. We are that platform that helps customers get everything they need from the comfort of their own home in about 40-45 minutes, even in today’s weather conditions. For businesses, it’s a great additional sales channel, expanding customer base and increasing brand awareness. And we enable couriers to get a good income without being tied to a schedule,” he noted.