Pan-African e-commerce giant Jumia has declared its decision to discontinue its food delivery service by the year-end due to its lack of profitability.
This move impacts all seven countries where the service operates, namely Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast.
In a statement, Jumia highlighted the “challenging economics” associated with the food delivery business, prompting the company to redirect its focus towards the physical goods segment. Mobile phones stand out as the most frequently ordered items on the platform.
Jumia, founded in Nigeria by two French entrepreneurs and launched in 2012, became the first Africa-focused tech company to be listed on the New York Stock Exchange in 2019.
Despite this shift away from food delivery, the company intends to continue its e-commerce operations in eleven African countries.
