Jumia Technologies, a renowned e-commerce platform, has announced a strategic decision to stop its food delivery service, Jumia Food, at the end of December. The business plans to close its food delivery operations in a number of countries, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
Jumia CEO, Francis Dufay, emphasized the company’s commitment to refocusing on its core physical goods business and payment platform. Dufay stated on Wednesday, “The more we focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow, with a path to profitability.”
He further explained the rationale behind the decision, asserting, “We must take the right decision and fully focus our management, our teams, and our capital resources to go after this opportunity. In the current context, it means leaving a business line, which we believe does not offer the same upside potential – food delivery.”
As part of the transition, Jumia clarified that some employees from the Jumia Food division will seamlessly move to the core physical goods segment. This move underscores the company’s commitment to optimizing resources and leveraging the potential for growth in its primary business areas.
The decision to discontinue the food delivery service aligns with a broader industry trend, as other major players, such as Bolt Food, have also announced their withdrawal from specific markets, citing the challenging landscape of the African food delivery sector.
