Jumia will cease operations for its food delivery service, Jumia Food, in all of its operational countries, which include Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria by the end of December 2023.

The company’s current priorities across its 11 operational nations are the Jumia Pay platform and its core physical goods business.

Even though Jumia Food accounted for 11% of Jumia’s Gross Merchandise Value in the first nine months of 2023, the company has had difficulty turning a profit since its founding. This indicates that between January and September of 2023, the total value of food sold on Jumia Food was $64 million, or 11% of $581 million. a measure of the enormous size at which Jumia Food was functioning, but it is not a measure of profits.

Jumia Food has had mixed results since its beginning, but in 2021 it showed a noteworthy 82% year-over-year growth, indicating the company’s solid position in the meal delivery market. Nonetheless, the business witnessed a significant drop in Quarterly Active Customers and Orders in 2023. a result of its change to concentrate on profitable areas and lower customer incentives to increase profitability.

Regarding Jumia Food staff, the company say that several will move to the main physical goods division, implying that some may face layoffs.

Bolt Food, a prominent player in the African food delivery industry, has announced its departure from South Africa and Nigeria in December 2023, coinciding with Jumia Food’s closure.

Despite Bolt Food’s efforts to expand into major Nigerian cities like Lagos, the company’s demise is ascribed to economic downturns, high inflation, and fierce rivalry from established rivals like Jumia Food, Gokada, and Uber Eats.