Cabify bets on grocery delivery to cash in on e-commerce boom

Cabify, a leading ride-hailing app in Spain, has tied up with online supermarket delivery firm Lola Market, to allow users to order groceries direct to their homes in nine cities including Barcelona and Madrid.
CabifyCabify, which also offers e-scooter hire and electric moped rental, did not provide financial projections for the new venture. Cabify said the project would help avoid unnecessary trips, cut emissions and allow for a more efficient use of resources.

“E-commerce in Spain has been growing at a double-digit rate in the past years,” said Lucia Chavarri, Cabify’s vice president of new business. “It would make sense for us to sustain above-average growth once we establish ourselves.”

By selecting the Super option in the app’s menu, Cabify users will be able to request goods from supermarkets including Spanish chain Dia and the German and French multinationals Lidl and Carrefour.

Madrid-based venture capital firm Seaya Ventures and Japanese online retailer Rakuten – also a lead investor in ride-hailing app Lyft — are Cabify’s main investors.

Rival Spanish delivery app Glovo, which has entered the rapid grocery delivery sector, said last month that it had bought Lola Market in Spain and Mercadao in Portugal.

Glovo said it expected the annual gross transaction value of the division to exceed 1 billion euros by end-2022, after topping 300 million euros by the end of 2021.