Glovo (ehrana) vs. Wolt – who is better?

Wich delivery service to choose from? In last year we have two competing food-delivery platforms in Ljubljana; ehrana and Wolt and this year Glovo bought ehrana. They offer food deliver from restaurants that are their partners. This allowed the delivery from smaller restaurants that didn’t have resources on their own. Restaurants could now focus on their core business and prepare food while they outsourced delivery. I tried to evaluate services and give my opinion on the topic.

Glovo

Glovo is a start-up company based in Barcelona and has a lot of capital in the background whit the last round of financing of 450 millions. They are spreading throughout southern Europe and Africa. Otherwise, they withdrew from South America in 2020. In addition to the delivery of food, they also deliver desserts, medicine, gifts, purchases from stores, and anything else.

ehrana

In 2011 portal www.ehrana.si was made as a hub for delivery services. But at that point, they were just an online ordering platform. Since 2017 they offer delivery to restaurants that don’t provide that service by themselves on bikes (ehrana Live). They developed the algorithm Alpaca Fleet for optimized delivery. Also, they spread their business to Maribor. By now they have over 250.000 users in the whole of Slovenia delivering 10.000 meals per day from more than 500 restaurants.

Glovo, a startup based in Barcelona, with huge capital in the background, the last round of financing was 450 million, bought ehrana. It is present throughout southern Europe in Africa. ehrana is shut on 15.9.2021.

Wolt

This is a Finnish company established in 2014 as a startup. Customers can order food from the platform’s restaurant partners via mobile apps or a web browser, and either pick it up or have it delivered by the platform’s courier partners. They are operating in 20+ countries. In 2019 they got 150 million € from investors and they expect to have 1000 employees by the end of the year.

Restaurants

With ehrana it is possible to have your own delivery and they would just provide you with the customers for a commission. Otherwise, both platforms are also offering restaurant delivery complementing channeling customers. Money from delivery that goes to the platform is more or less just forwarded to the delivery guy. The basic delivery is 2 € and covers 1.5 kilometers. Each extra 500 meters is charged 0.50 €.

Both platforms earn a commission from the base price. This is usually 30% (possible deviations). That is too much in my opinion. The restaurant has to buy the ingredients, pay the chef, rent a place and get just 70%. 30% for a platform that mediates in business is quite a large share of the pie. Additionally, they charge for delivery bags. When it comes to food, the price on a regular menu can be different from the price on the platform. Usually, there are no delivery costs then. Wolt, however, does not allow a difference.

Customers

The mobile app for food delivery is rated at 4.9 for ehrana, for Wolt at 4.8, and 4.2 for Glovo. I’ve tried them and they’re all intuitive. All platforms try hard to win over every customer. Wolt started with discounts and promotions and ehrana soon followed them (free shipping and similar discounts). That tells you how much margin they have so they can afford this. Wolt offers a coupon for every customer you bring, € 5. The minimum order is € 8.

Deliverers

Wolt and Glovo are looking for delivery partners. The first condition is the possibility of participation, mostly students (80%) through student work and sole proprietors. Another condition is that you have a means of transport, bicycles (80%, the easiest to overcome the city traffic), a scooter or a car. The calculation of revenue is quite complex. If you apply in advance for certain time slots, you get a basic hourly rate of € 5.4. Individual delivery is € 2.7. There are also extras per kilometer 0.4 € / km for more than 1.5 km, for waiting over 5 minutes, for bad weather, …

Approximately, couriers earn around € 10 gross per hour. The average delivery distance is about 2 km. On average, a deliverer works 5 hours a day and does about 50 km. This is a demanding job, cycling with a bike in all weather conditions. This is an insecure job where there is no social security if you get sick, no paid vacation days, lunch breaks, …The training takes place online for new delivery people, they must give a deposit (€25) for the equipment. Because of timely deliveries, there are more and more traffic violations by delivery drivers, in order to recognize them, they have been numbered in Ljubljana. I would suggest such a job to a young person until they finds something better.

User experience

I ordered from all providers, pad thai, salad, sushi, pizza, pho, burger, and kebab. Ordering process with payment was easy (ehrana allows cash payments). The food was delivered on time and was of the quality I expected. The delivery people were professional. The services of both companies were satisfactory. Wolt probably has a better app, and ehrana has a wider network of restaurants. As for prices, it depends on the restaurant. I had complaints about the food delivered and ehrana was very responsive, offered a coupon as an apology.

Summary

Both platforms provide a decent service. In the table below, you have characteristics from both services. Still, you will decide based on your preferences. I, personally order more often from ehrana, because they are locals. Now in COVID-19 times, this solution is really useful for restaurants and customers. Competition is good because they push each other to be better. After the pandemic fight will get bitter. Who will win, a Slovenian company with tradition and a big customer base or an international company that is backed up with big money? Wolt takes less commission, has a better app, offers discounts because they can afford this. So, money has an advantage for now. In my opinion, in 10 years the market will consolidate on a global scale and both of them will be bought by world players that will survive, like Grab. Or Wolt will grow to a global size? While we wait for the result of this battle let us enjoy the tasty food they bring to our homes.

CategoryGlovoehranaWolt
Delivery by restaurant???YesNo
Delivery by platform Yes YesYes
Delivery from shop Yes NoYes
Table reservation Yes NoYes
Student coupons NoYesNo
Around Slovenia Yes YesNo
Discount Yes YesYes
Web app Yes YesYes
Mobile app Yes YesYes
Online monitoring delivery Yes YesYes
Coupon for new customers YesNoYes
Card payment Yes YesYes
Cash payment Yes YesNo
Comparison table

Market consolidation

2021 – As I already predicted, a major foreign player came and bought eHrana (Glovo). We will see what changes it will bring and what consolidation will be like in the future.

2022 – Consolidation continues. Glovo (present in 25 countries) was bought by Delivery Hero (a German company) for $2.6 billion. A similar thing happened with Wolt (present in 23 countries), which was bought by DoorDash for €7 billion. The brands are still maintained, we will see if they will ever be discontinued.

On a global scale, remaining big companies are: Grubhub, Delivery Hero (acquired by Talabat, the largest on the rise), UberEats (acquired Postmaster), Zomato, Deliveroo, JustEat, DoorDash. It is estimated that this business will grow to $200 billion by 2025.

In addition, two new trends are emerging: Market (Wolt in Maribor), where you order products from Wolt, which has local suppliers, and Ghost/Cloud/Shared/Dark/Virtual kitchen – here, in you have only kitchens without a restaurant, they are located in the cheaper parts cities and usually shared premises and infrastructure between different providers. Otherwise, this means an easier entry into the market of prepared meals. But here, too, the above platforms are investing again, and I’m afraid that in the end, everyone will just cook for them. we will see what Delivery 4.0 will bring.

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