Jumia Technologies, one of Africa’s prominent e-commerce platforms, is set to conclude its food delivery operations across seven markets by the conclusion of this month, according to reports from Reuters on Wednesday (Dec. 13). The strategic decision aligns with the company’s objective to prioritize the expansion of its core online retail business.
As of the nine months ending on Sept. 30, Jumia Food contributed approximately 11% to Jumia’s overall merchandise value. The affected markets include Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast.
This move comes as part of Jumia’s broader cost-cutting initiatives aimed at achieving profitability. Notably, the company, founded in 2012 and often referred to as the “Amazon of Africa,” made history in April 2019 by becoming the first tech stock from the continent to be listed on Wall Street.
In mid-November, a report by news website TechCrunch revealed a decrease in Jumia’s customer base to approximately 2.3 million, marking a 24.3% decline from the third quarter of 2022. However, amidst this, the company reported its most favorable financial performance since its initial public offering on the New York Stock Exchange (NYSE), reflecting its commitment to financial sustainability.
