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Jumia Food Set To Shutdown In Nigeria From December 2023

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1 year ago

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Jumia Food Set To Shutdown In Nigeria From December 2023
Jumia has announced it will discontinue its food delivery service, Jumia Food.

This will take effect in countries, Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria by the end of December 2023.

 

The company had decided that it will, from hencefort, focus on its core physical goods business and the Jumia Pay platform across its 11 countries of operations.
 
“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,” said Francis Dufay, Chief Executive Officer of Jumia.

Despite accounting for 11% of Jumia’s GMV in the first nine months of 2023, Jumia Food has failed to reach profitability since its launch.

Between January and September 2023, the total value of food sold on Jumia Food was $64 million (11% of $581 million). An indication of Jumia Food’s vast magnitude, although it does not always equate to income or profitability.

Jumia meal’s fortunes have fluctuated since its beginning, with a remarkable 82% year-over-year rise in 2021 demonstrating the company’s solid grip in the meal delivery industry. However, the company’s Quarterly Active Consumers and Orders fell significantly in 2023. As a result of its decision to concentrate on profitable segments while limiting consumer incentives.

Concerning Jumia Food staff, the business claims a number of them will migrate to the core physical products division, implying that some may be fired off.

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