Business

Online shopping reshapes Kenyan retail as Glovo plans Sh10 billion investment

Oyoo Today, 4:20 PM 2 min read

Retailers at Glovo’s Nairobi summit explored AI tools and digital marketplaces as the company outlined plans to expand beyond the capital.

Online shopping is giving Kenyan retailers new ways to reach customers as demand for convenience changes buying habits. At its inaugural Future of Commerce Summit in Nairobi, Glovo brought together retailers, brands and industry players to examine that shift.

The company also outlined plans to invest an additional Sh10 billion in Kenya by 2030. It expects the investment to support expansion into more towns and cities beyond Nairobi, but provided no detailed spending breakdown.

Online shopping offers retailers another sales channel

Glovo entered Kenya in 2019 and now operates in 12 towns and cities. The company says it supports more than 6,000 merchants and over 2,200 active riders daily.

Businesses using the platform have generated more than Sh20 billion in sales, according to Glovo. Small and medium-sized enterprises account for about 80 per cent of that value, the company said.

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For smaller retailers, digital marketplaces offer another route to customers without requiring additional physical outlets. However, delivery costs, digital access and demand outside major urban centres will influence how widely those benefits extend.

AI tools change how customers find products

The summit also examined how artificial intelligence could change the way customers search for goods. Glovo highlighted its in-app AI assistant, which uses language models such as ChatGPT and Claude.

The tool allows customers to search using everyday language rather than scrolling through product menus. Discussions also covered technology adoption, retail innovation and collaboration among businesses seeking customers through digital marketplaces.

Meanwhile, opportunities extend beyond food deliveries. Consumer electronics brand oraimo, which partners with Glovo, said digital platforms were changing how customers access accessories and other products.

Expansion meets changing consumer expectations

Glovo Kenya Country Managing Director Caroline Mutuku said businesses must adapt as Kenyans change their shopping habits. Convenience formed a central part of the summit’s discussions on how consumers buy everyday goods.

The planned investment would support Glovo’s wider reach beyond Nairobi. However, the company’s announcement left the allocation of that spending unspecified, while the discussions highlighted both opportunities and challenges in moving more commerce online.

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