Jumia to Close Unprofitable Food Delivery Business in Multiple African Countries

Jumia, the leading e-commerce platform in Africa, has announced its decision to shut down its unprofitable food delivery business in several African countries. The company plans to cease operations in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast by the end of this month.

The news was shared on Twitter by Omwamba, a popular technology enthusiast, and has quickly gained attention within the African business community. Jumia’s move to close its food delivery segment comes as a strategic decision to optimize its operations and focus on more profitable ventures.

Jumia’s decision to exit the food delivery market is not entirely unexpected. The company has been facing significant challenges in this sector, including stiff competition and high operational costs. Despite its efforts to establish a strong presence, Jumia has struggled to achieve profitability and sustain its food delivery business.

By discontinuing its food delivery services, Jumia aims to streamline its operations and allocate resources to other areas that have shown stronger growth potential. The company will continue to operate its core e-commerce platform, which offers a wide range of products, including electronics, fashion, beauty, and household items.

Jumia’s exit from the food delivery market in multiple African countries does not imply a complete departure from the sector. The company will continue its food delivery operations in countries where it has witnessed better financial performance and higher demand. Jumia’s decision is based on a thorough evaluation of the market conditions and the profitability potential of each country.

The closure of Jumia’s food delivery business will undoubtedly have an impact on the company’s workforce. However, Jumia has assured its employees that it will make every effort to minimize job losses. The company is actively working on transitioning affected employees to other roles within the organization or assisting them in finding suitable employment opportunities elsewhere.

Customers who have been relying on Jumia’s food delivery services in the affected countries will need to explore alternative options. The company has not provided any specific recommendations, but customers can expect to see increased competition among other food delivery platforms in the region as they aim to fill the void left by Jumia’s exit.

Jumia’s decision to close its unprofitable food delivery business aligns with its long-term goal of achieving sustainable growth and profitability. The company remains committed to providing an excellent shopping experience through its e-commerce platform and plans to invest further in enhancing its core operations.

As Jumia adapts its business strategy to focus on more profitable sectors, it will be interesting to observe how the company continues to innovate and expand its presence in the African market. With the e-commerce industry in the region experiencing significant growth, Jumia’s decision to optimize its operations could pave the way for new opportunities and further industry advancements.

.

BREAKING NEWS
Jumia to close its unprofitable food delivery business this month in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria and Ivory Coast. | pic.twitter.com/74SLUJNaOf

— Omwamba (@omwambaKE) December 14, 2023

Source

@omwambaKE said BREAKING NEWS Jumia to close its unprofitable food delivery business this month in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria and Ivory Coast. |

RELATED STORY.