E-commerce platform Jumia Technologies has announced its decision to terminate its food delivery service, Jumia Food, by the end of December.
The company will also close operations in other countries, including Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
Jumia CEO Francis Dufay announced on Wednesday that the company will shift its focus to its core physical goods business and payment platform.
He stated, “The more we focus on our physical goods business, the more we realise 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.”
The company additionally clarified that several employees from Jumia Food will move to the core physical goods segment.
This departure follows the withdrawal of another major player, Bolt Food, from Nigeria and South Africa, underscoring the challenges faced in the African food delivery sector.