Jumia discontinues unprofitable food delivery service


Jumia Technologies AG, a prominent e-commerce platform in Africa, has announced the discontinuation of its unprofitable food delivery service, Jumia Food, as part of a broader effort to refocus on core e-commerce and JumiaPay operations. The closure, scheduled for December 2023, follows a strategic review indicating that Jumia Food didn't align with the current operating environment. Accounting for approximately 11% of Jumia’s Gross Merchandise Value, the food delivery segment struggled to be profitable. Jumia aims to concentrate on its physical goods business, emphasizing growth potential and profitability.

The decision reflects the challenging economics of the food delivery industry, and Jumia plans to transition employees to its ongoing physical goods business. This strategic move underscores Jumia’s commitment to profitable growth in the competitive e-commerce landscape. JumiaPay transactions increased in Q3 2023, showcasing a focus on areas with the highest growth potential and profitability.

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