Jumia, the African ecommerce platform, will shut down Jumia Food, its digital food delivery arm, at the end of December 2023. Jumia Food will close its offices in seven countries including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
Although Jumia Food contributed 11% of Jumia’s Gross Merchandise Value (GMV) between January and September 2023, the firm has had difficulty making a profit since being founded in 2013. That is $64 million (11% of $581 million).
Jumia Food has struggled since its founding. Regardless in 2021, it achieved 82% year-on-year growth, indicating its solid position in the food delivery market. Be that as it may, its Quarterly Active Customers and Orders have nosedived this year. Consequently, Jumia concluded that it would shut its food arm just like it did to Jumia Travel, its travel booking arm in December 2019.
Jumia will now focus on its core physical goods business and maintaining its JumiaPay operations across all 11 markets. Regardless, it remains to be seen what will happen to Jumia if it does not become profitable down the line. Perhaps the fate of Jumia Food and Jumia Travel will befall Jumia.
