On itnig’s Podcast #41 Sacha Michaud, one of the cofounders of Glovo shares his take and experience on the hypergrowth of the Barcelona based delivery startup with us, talks about market about delivery and on-demand user experience.

Bernat Farrero, CEO at itnig and Jordi Romero, CEO at Factorial speak with Sacha Michaud about his own personal story, how he grew as an entrepreneur and last but not least his perspective on Glovo in this podcast. Listen to our podcast on Youtube, iTunes or iVoox.

Sacha, we know each other as partners in Playfulbet from a few years ago but tell us about you, please. What’s your story?

I am English by family, Canadian father but born in London. As a kid I travelled a lot to different countries and I ended up in United Kingdom. When I was16 years old I stated to run as a jockey and through the sport I went on to live in the US. But my mother lived in Barcelona at that time: I went to visit, loved it and stayed.

At the end of the 90s I learned to program, it was the time Internet was taking off. At that time I create Latinred, which went very well, I was able to sell it to a US Nasdaq listed corporate. We sold to a competitor, with less users and traffic but much more capital.

You were able to sell before the crisis.

Yes you could say it like that but there are also other examples. After three years I left to create what is now known as Betfair, first here in Spain and then Portugal and Latin America.

That’s where the circle closes. I come from the horse racing world, filled with bets, I knew the world and I was a big fan of Betfair.

At that time Betfair was very strong in London and Ireland — I really liked their model of betting against other users. The more traditional way is betting against the house, which is earning a margin. Betting exchanges on the other hand are against other users and the house gains a commission. Betfair invented this model and I was already a big fan when they called me up to launch Spain.


Their way of launching was “Create a business plan”, I had a very entrepreneur role, very open. You have the platform and capital and you can run and create. I learned a lot, before I had been focused more on technological side but here I learned a lot about Sales. It was a more strategic role where I spent 9 years.

How did you leave Betfair?

After 9 years many things had changed, we went public, the way of managing the business turned to become much more centralized. I would have had to go to London or Dublin to continue to have an impact but I decided to leave.

At that time I was already really interested in Peer to Peer and On Demand and the sector Glovo is in now.

I joined forces with Oscar, a kid who just came back from the US and had the same idea. To get started we became part of Connector, an accelerator, a group of mentors with Carlos Blanco.

How was this experience with you?

When you start out it’s a good place. A secure place to start. In the beginning Glovo was a text field — you introduced what you wanted delivered and to which address.

“Bring me a pizza from this restaurant to this address.”

We grew organically in Barcelona and Madrid, launching within an interval of 6 months. We grew without marketing by giving excellent services. This allowed us in the first phase to grow — even though it was not scalable.

Then in the summer of the next year we launched Glovo Marketplace ,— with the restaurants and catalogues of products you see now.

The text box is still there, right?

Yes, it’s magic! And it’s very important that you have it. Its the WOW — it’s these the orders that you comment to your friends. You won’t talk about having received a pizza delivery but something custom, yes.

User Experience is everything. It’s not the App but everything : the service to the customer, the speed of delivery.

More than weird things that are bought and delivered, I am surprised by the quantity of things like keys. Kids get home from school and forget their keys so their parents send a Glovo or Real Estate agents and Airbnb renters who use Glovo to send keys.


Here at Camaloon we’ve tried different providers. Now we are at a 2% of cases in which packages do not arrive. Lost packages, accidents…You really don’t have ?

Yes but you don’t control the transportation chain. There are different delivery providers involved and the user might not be at home when the package arrives. But at Glovo it’s the opposite. We have control and it’s in demand.

Glovo is sharing economy. Were you sure from teh beginning that you wnated to have an external fleet of riders?

For me sharing economy is a project between individuals. Sharing living space or a garage between two peers. We are economy on-demand. This is very different – here is a peer and a professional involved. We are a marketplace with professional sellers and the delivery is done by a professional, freelancer.

There are two arguments in the discussions: Flexibility and liquitidy to everybody and on the other side, precarity and worsening of the job conditions, giving control to one industry over a lot of workers.

I don’t think so. The big majority is not looking for a fixed, full time position so we combine it. Glovo is not the work of your life. It can be something nice to do but it’s not the main aspiration.

Somebody who has been working many years in a restaurant kitchen, small space, no air, as a Glover possible to make the same.

How much does a Glover make?

It depends on the city and the volume of orders — 5 /6 € per order and in high times the average is serving two orders per hour.


What do you earn then?

Commission and fee that the user pays, minimum 1,90 Euro.

Would it make sense to have Glovo with own riders like DHL?

This would mean changing the dynamics. Flexibility would not exist anymore — it’s something we would have to look into. It’s an option but at the moment we are compliant with the current model.

What’s the trade-off by dealing with big funds?

Dilution. But I think it’s about choosing the right partners.

What about Rakuten? Why did they join Glovo?

Because it’s a company which has a vision about the sector Glovo is operating in. Rakuten is the Amazon of Japan — they are very interested in on-Demand, they entered the taxi market with an investment in Cabity. I see them as a very good partner, I hope in the future they will continue.

Next steps: Latin America, reaching more cities and becoming leader where we operate and we are looking for other cities like Istanbul, Cairo, Bucharest…Each one very different but we see a big opportunity.

Jump to the podcast to hear the end of the conversation with Sacha:


Listen to our podcast to learn more about Sacha Michaud’s journey and his perspective on entrepreneurship and startups. Learn more in this Podcast in Spanish on our Youtube channel, listen to it on iTunes or enjoy it through iVoox and subscribe to our newsletter to stay always up to date.

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W.

WHY YOU SHOULD CONSIDER A COWORKING SPACE FOR YOUR STARTUP

Your home office or a coffee shop won’t be enough!

Yes, we all know the tale about the guy who starts a small company in their garage or basement, has a brilliant idea and becomes the next Steve Jobs. It’s true, most successes have very humble beginnings. It’s also true that not all garage or basements are going to magically get you a successful business. They might work in the very (veeeery) early stages of your startup, but you can’t always meet a client at coffee shops, not to say your basement. 

A great, if not the best, solution is to find a coworking space. Coworking spaces have become very popular all over the world, either for freelancers or entrepreneurs and startups. 

Coworking spaces are not just big rooms with desks and chairs with high-speed wifi. The areas are made to be exciting places to work and improve your productivity.

As a startup, you need to find resources fast and affordably. More importantly, you’ll need motivation. This is why you should consider a coworking space. 

Here are some basic but amazing benefits from coworking spaces:

Community

Joining a coworking means joining a community.  Being surrounded by other entrepreneurs, freelancers and talented independent people is without doubt a one of the best features of a coworking.

Motivation is key when starting a new project and trying to develop your own business. The road will get though and you’ll appreciate other entrepreneurs’ vision and support! Other workers’ feedback can be very useful to improve your service/product before trying to sell it to the world. 

Networking, networking and…networking!

As a startup, you’ll be looking for networking opportunities. Most coworkings host professionals from different kind of industries, which can open up many doors for you and your business. Not all coworking spaces are about networking, some of them prefer to have a quiet individual work environment, so as a startup you have to make sure to choose a coworking with networking opportunities.

At Itnig, for example, we love to share ideas and support other entrepreneurs. Don’t be shy, some of the other coworking tenants can bring great business opportunities, or even become new clients (and friends)! 

Budgetfriendly

As entrepreneurs (or people for that matter) it’s very important to understand the importance of money, more specifically: budget. Tight budgets call for smart spending. Coworkings are usually budget friendly, most of them offer different membership options depending on your startup’s needs and budget.

Amenities 

A coworking provides you with everything needed to be as productive as possible. High speed internet connection, printers, conference rooms and COFFEE. Some coworkings even plan afterwork activities and events to make it all more fun! As a startup, a coworking space is your best chance at having all the basic amenities but also the fun ones, like a ping pong table or a nice chill out terrace. 

Happy clients

As you grow and have more clients, it can get messy if you keep meeting them in coffee shops. Coworking spaces offer office services such as conference rooms. That way your meetings will be more professional and comfortable for everyone. 

Barcelona is a city full of coworkings of every kind! Our Itnig community keeps growing, we now have up to 20 startups such as Andjoy, Classlife, Factorial and Freeverse, all under the same roof. We have afterwork activities and we also plan different kinds of events open to anyone interested in marketing, tech stuff, entrepreneurship and design. Our space is about 2.100m2 with up to 800m2 of conference rooms, events space, ping pong and fun activities. 

There’s also  wifi, endless coffee and talented people. Join us!