Jumia to stop food delivery business by end of 2023

Jumia, the African e-commerce firm, is undergoing significant changes.

It announces the closure of its food delivery business in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast by the year’s end.

The decision stems from Jumia’s strategic focus on enhancing its core online retail business.

Jumia Food accounts for approximately 11% of Jumia’s general merchandise value. Photo: Jumia Food/Facebook.

The company, intent on achieving profitability, is implementing various cost-cutting measures, including reducing its workforce, exiting everyday grocery items, and trimming delivery services unrelated to its e-commerce operations.

Further, the move aligns with Jumia’s broader goal of optimizing its capital and resources.

To steer towards profitability, acknowledging the unsuitability of Jumia Food in the current operating environment and macroeconomic conditions.

For nine months ending Sept. 30, has faced persistent losses since its inception.

Chief Executive Officer Francis Dufay highlighted the challenging nature of the food delivery segment globally. Photo: Jumia Food/Facebook,

Citing high costs, intense competition, and tough economics.

He emphasized the downward pressure on commissions and the upward pressure on marketing costs due to fierce competition for customers.

Despite these challenges, Jumia’s food delivery business will not leave its employees in limbo.

The first Africa-focused tech start-up to list on the New York Stock Exchange shared that several employees dedicated to the food delivery business will transition to the core e-commerce business in the aforementioned countries.

Jumia has been actively reducing its losses, evident in the latest figures indicating a 67% reduction in third-quarter losses compared to the previous year.

The company’s strategic moves reflect its commitment to sustainability and growth in the dynamic landscape of e-commerce in Africa.