E-commerce giant Jumia is ceasing its food delivery service, Jumia Food, in seven countries by the year-end, focusing on its core goods business and Jumia Pay.
The decision, affecting 11% of the company’s Gross Merchandise Value, aligns with their aim for profitable ventures.
According to Jumia, this strategic move is to concentrate on e-commerce and fintech strengths, aiming to maximize value for customers, partners, and shareholders.
This shutdown alters the African online food delivery landscape, raising questions about reasons behind the closure, which might involve market competition, logistical issues, or divergent long-term strategies.
The impact on employees and delivery partners is uncertain, but Jumia has committed to assisting them during this transition.
Jumia’s withdrawal from food delivery underscores the competitive nature of this market, where profitability remains a challenge for some, prompting curiosity about future strategies in this dynamic industry.
