Jumia will be closing its food delivery business, Jumia Food, across Africa at the end of the year.
Jumia Food has operated in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria and Ivory Coast.
“Following a strategic review of Jumia Food, the Company determined that its food delivery business is not suitable to the current operating environment and macroeconomic conditions in its market, and will close its food delivery operations in all markets by the end of December 2023,” a statement from the company says.
“This decision is in line with the Company’s strategy to optimize its capital and resource allocation and to continue its path to profitability. The food delivery business represents approximately 11% of Jumia’s GMV for the nine months ended September 30, 2023 and has not been profitable since inception of the business.”
“The more we focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow, with a path to profitability. We must take the right decision and fully focus our management, our teams and our capital resources to go after this opportunity. In the current context, it means leaving a business line, which we believe does not offer the same upside potential – food delivery,” Francis Dufay, the Chief Executive Officer of Jumia is quoted saying in the same statement.
The shuttering of Jumia’s food delivery business in Africa means that it is Glovo and Uber Eats that remain in the space across several markets on the continent alongside a host of several other local-specific solutions.
