Jumia to shut down Jumia Food by December 2023; To focus on ecommerce business

Jumia has unveiled plans to shutter its food delivery arm, Jumia Food. The company will maintain its core physical goods business and JumiaPay operations across all its operational countries.

After conducting a strategic review of Jumia Food, the company concluded that the food delivery business is not well-suited to the current operating environment and macroeconomic conditions in its market. Consequently, Jumia will cease its food delivery operations in all markets by the end of December 2023. This decision aligns with Jumia’s strategy to optimize capital and resource allocation and continue its journey towards profitability.

Jumia Food accounts for approximately 11% of Jumia’s Gross Merchandise Volume (GMV) for the nine months ending September 30, 2023, and has not been profitable since its inception.

Francis Dufay, Chief Executive Officer of Jumia hinted on the closure of the food delivery business in February when he outlined new actions upon his resumption as the CEO.

Dufay emphasized the strategic shift, stating, “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. 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.”

Antoine Maillet-Mezeray, EVP Finance & Operations of Jumia, added, “Food delivery remains a business with very challenging economics, in Africa and across the world, and we want to focus our efforts on our physical goods e-commerce business, in the eleven markets where we operate. This is a matter of prioritization of opportunities and expected return on investment.”

Jumia Food currently operates in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast. Employees dedicated to the food delivery business in these countries will transition to the continuing physical goods business.

This strategic realignment underscores Jumia’s commitment to profitable growth and dedication to its core physical goods business across its 11 operational countries. As the company steers towards a more focused approach, the decision to close Jumia Food reflects a prioritization of opportunities in line with Jumia’s vision for sustained success in the e-commerce landscape.

Jumia’s decision comes on the heels of a recent move by the Estonian ride-hailing company Bolt, which announced last month its decision to shut down its food delivery services in Nigeria and South Africa.