Jumia Food Delivery Services, a significant division of Jumia, is set to conclude its food delivery operations across all seven operational countries in Africa by the end of December 2023. The affected countries include Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
Francis Dufay, the CEO of Jumia, emphasized the strategic decision, stating, “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 toward seizing this opportunity.”
Despite Jumia Food Delivery Services contributing 11% to Jumia’s Gross Merchandise Value from January to September 2023, profitability has been elusive. Dufay acknowledged the challenges, noting, “It’s a segment that’s very difficult across the world, with very challenging economics and big losses. It’s also a segment that is extremely competitive across the world and Africa.”
Jumia’s strategic shift reflects a commitment to prioritize its core e-commerce platform and physical goods business. As the company navigates challenging dynamics in the food delivery segment, redirecting focus toward more profitable opportunities aligns with its overarching goals and positions Jumia for sustained growth and success.
