E-commerce giant, Jumia has announced a plan to shut down its food delivery service in Nigeria and other African markets by the end of December 2023.
Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria, are other countries in which the company’s food delivery service will no longer be functioning.
This sudden departure leaves a gaping hole in the burgeoning African food delivery market, raising questions about its future and major players’ challenges.
Jumia CEO Francis Dufay cited a clear focus on the company’s core physical goods business and Jumia Pay platform as the reason for the exit. Despite Jumia Food accounting for 11% of the company’s gross merchandise value, its persistent struggle for profitability proved to be the tipping point.
He stated, “The more we concentrate on our physical goods business, the more we recognize the substantial opportunities for Jumia to flourish and achieve profitability.
“Hence, we must make the right decision by directing our management, teams, and capital resources towards seizing this opportunity.”
In a similar development, Bolt Food, another significant player in the African food delivery market, announced its exit from Nigeria and South Africa in December 2023.
Bolt Food’s departure, despite its expansion efforts in major Nigerian cities like Lagos, is attributed to economic downturns, high inflation, and stiff competition from well-entrenched rivals such as Jumia Food, Gokada, and Uber Eats.
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