As you know, lately our society has faced many challenges which have caused global economic crisis, inflation, rise in unemployment and others.
For this reason, Glovo has come up with a cost optimization strategy through the use of the Third Party Logistics Providers (3pl) program.
It consists of outsourcing an outsider logistics provider (firm) with electric bikes to deliver Glovo orders. This provider is paid a fixed amount per order, as opposed to a per-KM structure. Majority of the time, the riders are localized within a specific area . These are now being referred to by Glovo couriers as “fleet”.
3pl riders are managed by the firm in terms of payments and contract structure. Riders don’t own the vehicles they use, but the firm. Glovo typifies these riders as type B freelancers. Glovo manages them like any other courier.
How many 3PL couriers do we have in Kenya?
We currently have a total of 12 active 3PL couriers from 3 different companies on Glovo platform, and we will add more each month until December.
Is it true 3PL riders are paid more than independent contractors?
No.
The reverse is true, the independent contractors are paid a general base and cost per km, while the 3PL couriers are paid a flat sum for all orders regardless of distance covered. Please see two tables below:
Independent courier payment
3PL courier payment
3PL courier payment is based purely on the number of orders made. No base pay, bonus or KM advantage. Currently, Glovo pays 3PL Ksh 85 per order delivered.
What does this mean?
A 3PL courier needs to do twice as many orders as an independent contractor.
Is it true that 3PL couriers get slots from morning till evening, while independent contractors are not given slots?
Due to the fact that Glovo is making a concession with regard to 3PL companies, it is only fair to fully utilize these couriers. At the same time, a 3PL courier needs to do twice as many orders as an independent courier to make the same amount of money. It is for this reason, they receive 10-hour slots where available.
Is it true that independent courier accounts are being blocked to make way for 3PL couriers?
No. This is not true.
All couriers are required to follow the same terms and conditions with regard to reassignments, no shows/unbookings, late check in and fraud issues regardless of the employer.
Some of the 3PL have also been blocked as a result of reassignments and no shows/ unbookings.
Couriers have no need for worry regarding the 3PL couriers or companies as they are able to work side by side in Glovo.
If a courier decides that the 3PL way is better, he is free to join any 3PL if he so wishes and collaborate with Glovo as a 3PL courier.
However, due to the nature of our business with the 3PL companies we are unable to onboard 3PL couriers as independent couriers on the Glovo platform.
Do you have any other burning questions? Feel free to share them here or ask at a Glover center near you.
