Pan-African e-commerce giant Jumia Technologies will end the running of its food delivery arm this month in Nigeria and six other markets where it has footprints on the continent.
The decision is part of a cost-cutting push aimed at refocusing the company on expanding its online retail business.
Jumia Foods, which accounted for 11 per cent of Jumia’s gross merchandise value – the value of goods sold via its platform – in the nine months to September has never recorded a profit since it commenced business. In addition to Nigeria, it plans to shut down operations in Kenya, Uganda, Morocco, Tunisia, Algeria and Ivory Coast.
“The company determined that its food delivery business is not suitable to the current operating environment and macroeconomic conditions in its market, and will close its food delivery operations in all markets by the end of December 2023,” Jumia said in a statement.
“This decision is in line with the company’s strategy to optimise…