Jumia will cease operations for its food delivery service, Jumia Food, in all of its operational countries, which include Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria by the end of December 2023.
The company’s current priorities across its 11 operational nations are the Jumia Pay platform and its core physical goods business.
Even though JumiaFood accounted for 11% of Jumia’s Gross Merchandise Value in the first nine months of 2023, the company has had difficulty turning a profit since its founding.
This indicates that between January and September of 2023, the total value of food sold on JumiaFood was $64 million, or 11% of $581 million. a measure of the enormous size at which Jumia Food was functioning, but it is not a measure of profits.
Jumia Food has had mixed results since its beginning, but in 2021 it showed a noteworthy 82% year-over-year growth, indicating the company’s solid position in the meal delivery market.
Nonetheless, the business witnessed a significant drop in Quarterly Active Customers and Orders in 2023. a result of its change to concentrate on profitable areas and lower customer incentives to increase profitability.
Regarding the staff, the company says many of them will move to the main physical goods division, implying that some may face layoffs.
