Jumia is shutting down its food delivery service, Jumia Food, across its operating countries, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria, by the end of December 2023.
The company in a statement says it will beam its focus on its core physical goods business and the Jumia Pay platform across its 11 countries of operations.
Francis Dufay, Chief Executive Officer of Jumia in a statement said:
“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".
Jumia Food having 11% of Jumia's Gross Merchandise Value (GMV) in the first nine months of 2023, has since inception struggled to achieve profitability.
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The total value of food sold on Jumia Food stood at $64 million (11% of $581 million) between January and September 2023, showing the massive scale Jumia Food was operating at, but it doesn't necessarily amount to revenue or profitability.
Jumia Food has since it was launched experienced fluctuating fortunes, having a 82% year-over-year growth in 2021 but in 2023, the company saw a marked decline in Quarterly Active Consumers and Orders.
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