Jumia Bids Farewell to Food Delivery Service in Strategic Shift
Jumia Technologies, a prominent e-commerce platform, recently revealed its decision to discontinue its food delivery arm, Jumia Food, by the end of December.
The company further announced the cessation of operations in various countries, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
Francis Dufay, Jumia’s CEO, expressed on Wednesday the company’s intention to refocus on its fundamental business of physical goods and its payment platform. He emphasized the untapped potential for growth and profitability in this domain.
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Dufay stated, “The more we concentrate on our physical goods business, the more we recognize the vast potential for Jumia to expand, with a clear path to profitability.
We must make the right decision and concentrate our management, teams, and financial resources to pursue this opportunity. In the current scenario, it means stepping away from a business line, which we believe doesn’t present the same promising potential – food delivery.”
Jumia clarified that several employees from the Jumia Food division would transition to the core physical goods segment, aligning with the company’s strategic shift.
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This move arrives in the wake of Bolt Food, another significant player in the industry, also announcing its withdrawal from Nigeria and South Africa.
These exits underscore the challenging dynamics within the African food delivery landscape, prompting major players to reconsider their strategies and reallocate their resources to more promising areas of operation.
