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African e-Commerce Firm Closing Down its Food Delivery Arm in Seven Countries by End of 2023 

Jumia has been unprofitable since inception and lost $19 million in Q3 2023. But since Francis Dufay became CEO last year, the company has been cutting its weight to find profit. It stopped food delivery operations in Egypt, Ghana and Senegal; suspended logistics-as-a-service in all markets except Nigeria, Morocco and Ivory Coast; discontinued Jumia Prime across all its markets; and scaled back first-party groceries in Algeria, Ghana, Senegal and Tunisia. However, of all the streamlining efforts, its exit from the food delivery business across seven markets was the most unexpected. Jumia Food comprised approximately 11% of the company’s gross merchandise volume until Q3 2023. It was also the fastest-growing category on the e-commerce platform and the second-largest category behind fashion in volume terms for years.

SOURCE: VENTURES AFRICA