Jumia Exits Food Delivery Across 7 African Countries, Refocuses on Core Business
• Jumia is discontinuing its food delivery service, Jumia Food, across 7 African markets by end of 2023. The markets are Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria and Ivory Coast.
• The decision aligns with Jumia's cost-cutting efforts and strategy to focus on its core physical goods business and path to profitability.
• Jumia Food accounted for 11% of Jumia’s gross merchandise volume (GMV) in 2022. However, the business has not been profitable.
• Instead, Jumia will focus on growing its physical goods business, where it sees more potential and opportunities.
• The move mirrors a broader trend of food delivery services struggling with challenging economics and competition in Africa. Bolt Food also recently exited markets.