Order Bundling Boosts Delivery Efficiency

Glovo’s edge comes from turning a messy one order at a time courier network into something closer to a routed system. Its dispatch engine bundles multiple orders, matches them against courier location, prep times, traffic, vehicle type, and live disruptions, which is exactly how a point to point model pushes toward the upper end of drops per hour instead of wasting rider time waiting, deadheading, or taking low density trips.

• The key operational trick is stacking orders that do not need to come from the same restaurant. That matters because the ceiling in marketplace delivery is usually set by how often a rider is idle between pickup and dropoff. Better bundling raises paid work per hour without needing higher menu prices or delivery fees.
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• This is also why multi category delivery platforms can outperform single category peers. Rappi’s model benefits from more chances to combine nearby demand across food, grocery, and other errands, making its delivery network look more like a dense urban route than isolated restaurant runs.
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• Recent evidence shows this is not just historical execution. After moving onto Delivery Hero’s global tech stack, Glovo saw double digit gains in logistics efficiency, and Delivery Hero tied further cost improvement to better delivery and picker algorithms, lower rider waiting time, and better vendor availability.
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The next step is a tighter merge of dispatch, merchant prep, and multi category demand into one citywide routing layer. As more volume flows through groceries, retail, and sponsored placements on the same network, the best operators will keep widening the gap by making each courier hour carry more orders, more GMV, and more margin.