Glovo, a food delivery giant in Africa, has announced that it will be exiting the Ghanaian market on May 10, 2024, citing profitability challenges and a reassessment of investment priorities.
According to Business Insider Africa, the decision to pull out of Ghana came three years after the company’s investment of $3.7 million to deepen and expand its services in the West African country.
Regional General Manager of Glovo Africa, Dima Rasnovsky, said the recent development is a result of the company reassessing its investment priorities.
- “Following a reassessment of the company’s investment priorities, Glovo has decided to cease operations in Ghana by May 10, 2024. Glovo will focus on growing and strengthening its position in other African countries. We thank our teams, partners, and riders in the country for the dedication to growing Glovo in Ghana over the last years,” he said.
- The delivery platform said via email, “While we recognize the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period.
- “This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us to better serve the millions of customers who use the Glovo app every day,” Dima said.
The Glovo team said it would provide severance packages to its local team and riders that exceed the legislative minimum.
In addition, all couriers, partners, and customers will be effectively communicated about the new decision to ensure they are informed about the situation.
Despite the planned exit from the Ghana market, Glovo stated that it remains committed to providing top-notch service to the countries it currently operates and believes that its decision to pull out of the Ghanaian market will strengthen its position in other markets.
What to know
- Glovo operates in 23 countries across Europe, Central Asia, and Africa, with Africa being a key region for the company. It has a strong presence in countries such as Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda.
- Jumia Foods, another fledgling food delivery company in Africa, announced it was exiting seven African countries last year to concentrate on the expansion of its core online retail business.
- Bolt Foods also pulled out of the Nigerian and South African markets to converge its resources and maximize its efficiency.
