Jumia has recently announced that it will stop providing its food delivery service, Jumia Food, in all the countries where it currently operates, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria. This decision has been made as the company is now focusing more on its Jumia Pay platform and its core physical goods business.
While Jumia Food contributed to 11% of Jumia’s Gross Merchandise Value in the initial nine months of 2023, the food delivery segment has struggled to generate profits since its inception. The figures reveal that the total value of food sold on Jumia Food from January to September 2023 amounted to $64 million, representing 11% of the $581 million Gross Merchandise Value. It’s crucial to note that this metric showcases the scale of Jumia Food’s operations but does not reflect its profitability.
As Jumia realigns its focus and resources, the decision to exit the food delivery market signals a strategic move to streamline operations and concentrate on areas with greater growth potential.