In a recent announcement, Glovo, a prominent food delivery platform in Africa, revealed its decision to cease operations in Ghana effective May 10, 2024. This decision marks a significant development in the company’s trajectory, coming two years after its substantial investment of €3.5 million ($3.7 million) to expand its services within the region.
Glovo opened its Ghana office in 2021 making it the fifth country in Africa.
According to Dima Rasnovsky, the Regional General Manager of Glovo Africa, this decision was made following a thorough reassessment of the company’s investment priorities. Rasnovsky stated, “Following a reassessment of the company’s investment priorities, Glovo has decided to cease operations in Ghana by May 10, 2024. Glovo will focus on growing and strengthening its position in other African countries. We thank our teams, partners and riders in the country for the dedication to growing Glovo in Ghana over the last years.”
While Glovo acknowledges the potential of the Ghanaian market, the company recognized that achieving profitability and building a stronger foothold in the market would necessitate substantial investments over an extended period. As a result, the decision was made to redirect resources towards bolstering operations in the other 23 countries where Glovo currently operates.
Glovo emphasized its dedication to providing the local team with severance pay exceeding the legislative minimum. Furthermore, the company assured that all couriers, partners, and customers would receive comprehensive communication regarding the closure to ensure they are well-informed about the situation.
Glovo’s operations extend across 23 countries spanning Europe, Central Asia, and Africa, with Africa being a pivotal region for the company. Notable countries where Glovo maintains a strong presence include Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda. Despite the closure in Ghana, Glovo remains committed to its operations in the remaining countries, believing that this strategic decision will strengthen its position in other markets.
This move by Glovo mirrors similar actions taken by other major players in the African food delivery market. Last year, Jumia Foods ceased operations in seven African countries, demonstrating the evolving landscape of the industry. Similarly, Bolt Food recently announced its exit from Nigeria and South Africa in December 2023, aligning with its efforts to streamline resources and enhance overall efficiency.
