Exploring the future of Q-commerce

As Glovo continues revolutionizing the on-demand delivery landscape, its Q-commerce operations have become an important pillar of its growth strategy. Patricia Akankwatsa of The Independent had the opportunity to sit down with the newly appointed Country Manager, Ivy Maingi to discuss how Glovo is redefining quick commerce in Uganda and beyond.

How has Glovo strategically expanded its Q-commerce operations? What factors have influenced its market selection?

I think one of the things that we have done is partnering with big players in the market. Q-commerce includes restaurants, and retailers, for example, the likes of capital shoppers, the likes of Fraine supermarket, and the likes of Masters, so we’ve partnered with all of those. But also, beyond the big players, we have partnered with small local players. For example, we have farm- like markets in Nakasero on Glovo. So, we are doing a mixture of both big and small players.

We’ve also developed tailor-made customer solutions. For example, the Glovo app allows you to pay with mobile money because that’s one of our customers’ favourite methods. You can use your card, MTN mobile money, or Airtel mobile money at no extra cost.

Something else that we’ve done is expand to other cities. We’re not just in Kampala, we are in Entebbe and just two weeks ago we launched in Jinja. Expanding geographically is one of the ways that we’ve tried to expand Q-commerce and e-commerce in Uganda.

How has the Q-commerce landscape evolved since Glovo’s entry? What are the key trends and competitive dynamics?

The market is changing into a cashless market. That’s how the landscape is looking. So that means that we need to come up with ways that our customers can pay without having to have cash. That’s why we’ve worked on mobile money and the integration will keep getting better and better.

Something else is partnering up with local vendors that our customers like because the digital landscape is changing and people want to order stuff on Instagram quickly. They have famous TikTok shops, for example. So, partnering up with those vendors and putting them on our platform, ensures we are providing the right value.

What is the breadth and depth of Glovo’s Q-commerce product offerings? How do you ensure product quality and freshness?

We have integrated our app into the systems of our big partners. For example, if you go to Carrefour today, you’ll find that there’s an actual till just for Glovo. This means that we have integrated with their Point of Sale (POS) system, so they’re able to send us real-time data of what’s on the shelf, for example, if you want to order something from Carrefour on Glovo, whatever you’re seeing on the app is what’s at the store.

We have also employed people who work at our partners’ stores to ensure that your goods are being picked up as quickly as possible.

We have also built a whole product line that is not just in Glovo but also globally. It is called Instaleap. This platform helps retailers manage their e-commerce and last-mile operations. It offers a variety of features to help retailers increase online sales, optimize efficiency, and deliver on time. Instaleap is a picking solution because you can imagine in Q-commerce, when you are shopping when you’re placing your order, you’re not placing an order for two things.

It’s usually like a trolley that has maybe almost 20 items. It’s not like food. Here you’re ordering toothpaste, tissue, and hair oil. The picking solution shows the picker, the person who works there, which row your item is, so they’re able to quickly move around the store and figure out where this item is. This ensures that the products are getting to you fresh and delivered on time.

To ensure quality, we vet our suppliers. That’s why we only have the best. When we want to partner with local suppliers, we ensure that we have suppliers that we have vetted and their goods are goods that are up to standard. We are very strict on that.

The other thing is we look at the customer feedback. So we’re able to see which suppliers have the highest complaints and tell them to be careful or change.

How do you intend to address any existing challenges in the local delivery market?

I think one of the biggest challenges has been educating the customers about what delivery is because some customers don’t understand where they can get support in case something happens to their order. We want to implement customer-like education soon.

The other challenge is something we call tech debt. In any tech company, this is an issue.

However much our product offering is accelerating, we still believe that we can innovate even more. To address this, we are hiring more engineers to make sure that the app is optimized in a way that serves the customer.

One other challenge is content. Customers just don’t want to shop from only the big suppliers. A customer will want to go on Glovo and order anything. They want a huge range of items. This is why we are trying to bring as many suppliers as we can on board. It takes time but we are trying to hasten the process by hiring more team members.

Another challenge is weather patterns. For example, right now it’s raining. Getting your order delivered is hard because no one wants to work in the rain. So, we are trying to ensure that our riders are prepared during harsh weather conditions. We make sure that they have rain gear, they have rain boots, they have raincoats because it’s raining, you still want to drink your tea, you still want to drink your coffee. We are doing this so that it doesn’t stop customers from getting their needs.

What key factors contribute to a positive Q-commerce customer experience on Glovo?

Number one is speed. We always try to deliver orders within 40 minutes or less. That’s one of our biggest priorities and I think the reason why it contributes to a positive customer experience.

Number two is variety and quality ensuring that we have enough content for our customers.

Another important aspect is customer support. We strongly believe that excellent customer support fosters customer loyalty. For instance, when you place an order at Carrefour and it arrives on time, you have the peace of mind of knowing that if something goes wrong, you can easily reach out to customer support and receive the necessary assistance. This positive experience, combined with a user-friendly app and intuitive product design, encourages repeated business. To further enhance this experience, we’re actively working to optimize our search engine.

What specific strategies do you plan to implement to enhance Glovo’s market presence in Uganda?

Our current strategy centres on enhancing customer experience. This involves more than just customer support; it encompasses factors like delivery speed and product variety. For instance, if we can currently deliver orders in 40 minutes, our goal is to reduce that to 30 minutes.

To further enrich the customer experience, we’re expanding our content offerings. By including a diverse range of options like restaurants, e-commerce stores, and fashion retailers, we aim to become the one-stop app for all consumer needs, from groceries to clothing, books, flowers, and alcohol.

Geographic expansion is another key strategy. We’re exploring opportunities in major cities like Mbarara and Mbale, where we already have a strong e-commerce presence.

Finally, we’re promoting our Prime loyalty program, which offers unlimited free deliveries for a monthly fee of Shs9,000 By educating customers about the cost savings and convenience of Prime, we aim to increase its adoption.

How do you measure and improve customer satisfaction?

We employ several metrics to gauge customer satisfaction. One key metric is the Net Promoter Score (NPS), which we gather through quarterly surveys. By asking customers how likely they are to recommend our service, we gain insights into their overall experience.

For instance, in Uganda, we analyze the reasons behind positive and negative feedback. Positive feedback often centres around product variety and store availability. Negative feedback may highlight issues like order delivery times, cancellations, or missing items.

To address these concerns, we closely monitor key performance indicators (KPIs) daily and weekly. Dedicated teams actively track metrics such as delivery times, cancellation rates, and item fulfilment rates.

What strategies have you implemented to optimize delivery times and reduce operational costs in Q-commerce?

To expedite delivery times, we prioritize timely order preparation by our partner stores. We work closely with retailers like Carrefour and KFC to optimize their preparation times. This involves leveraging technology, such as ensuring their devices are connected to the internet, to streamline operations.

Another important factor is fleet size. We forecast monthly order volumes and allocate a sufficient number of couriers to meet demand. This helps ensure timely deliveries and minimizes delays.

Additionally, we continuously refine our order allocation algorithm. By feeding the algorithm with real-time data on preparation times, we can optimize delivery schedules. For instance, if we know a store like Carrefour takes 20 minutes to prepare an order, the algorithm can dispatch a courier 10 minutes in advance.

Finally, we prioritize driver satisfaction. By offering competitive earnings and favourable working conditions, we motivate our couriers to deliver orders promptly and reliably, reducing the likelihood of cancellations and reassignments.

How is Glovo addressing sustainability concerns in its Q-commerce operations? 

Implementing sustainable practices like eliminating single-use plastic bags can be challenging in countries like Uganda, where such regulations may not be in place.

One notable initiative is our food waste reduction program. We collect surplus food from stores and distribute it to children’s homes through NGOs.

Another significant step is the transition to electric vehicles. We’re gradually replacing petrol motorbikes in our fleet with electric ones to reduce carbon emissions. Currently, almost 30% of our fleet consists of electric vehicles.

Additionally, we prioritize sustainability in our partnerships with local businesses. We provide training on financial management and digital platforms to help them grow and operate more sustainably.

What do you see as the future of Q-commerce in Uganda? How do you envision Glovo’s role in shaping this industry?

The future of Q-Commerce in Uganda is rapidly evolving towards an Amazon-like model, where convenience is paramount. Imagine waking up and realizing you’re out of pens or earphones.

Instead of heading to a store, you simply order them online and have them delivered to your doorstep.

This trend, known as Q-commerce, extends beyond food delivery. It encompasses a wide range of products, eliminating the need for traditional shopping experiences like visiting malls or markets. The goal is to make shopping as simple as a few clicks on a smartphone.

And since the future is then going that way, at Glovo, we are building the in-house team that needs to be a team that can do e-commerce businesses and I think that’s one of the things that Glovo is doing is training the team here on how to handle logistics.

What are your ultimate goals for customer satisfaction and team development over the next year?

To enhance customer satisfaction, we’ve set a high bar: maintaining a customer rating of 4.7 or above out of 5. Achieving this requires a multi-layered approach.

First, we must ensure efficient restaurant operations. This involves minimizing preparation times and accurate order fulfilment. A strong team is essential to manage these processes effectively.

Second, we need to improve customer support. Many customers are unaware of the available support channels. We are actively working to educate them on how to seek assistance within the Glovo app.

Third, as the business grows, we’ll expand our team. This includes hiring new talent and investing in employee development through training programs conducted by our regional headquarters in Barcelona.