Jumia Technologies, the Pan-African e-commerce giant, is discontinuing its food delivery service in Nigeria and six other markets as part of a cost-cutting strategy to focus on expanding its online retail business.
Jumia Foods, accounting for 11% of gross merchandise value, will cease operations in Nigeria, Kenya, Uganda, Morocco, Tunisia, Algeria, and Ivory Coast by the end of December 2023.
This decision aligns with Jumia’s goal to optimize resources and capital, emphasizing a path to profitability amidst challenging market conditions.
The company, founded in 2012 and listed on the NYSE in 2019, aims to address tough economics and intense competition in the food delivery segment.
Despite recent headcount cuts and strategic shifts, Jumia reduced losses by 67% in the third quarter of the year.
