Jumia has shut down its food delivery business to cut costs.
The e-commerce company has decided to shut down its food delivery business, Jumia Food, across several African countries, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria by the end of December 2023.
Jumia, facing a Q3 2023 loss of $19 million, has been reevaluating its business segments to navigate challenging market dynamics since Q4 2022, where the company made a full-year loss of $207 million and a Q4 loss of $49.2 million.
Jumia CEO, Francis Dufay highlighted the food delivery sector’s tough unit economics and substantial losses, attributing the closure to increased competition and rising operational costs.