In a new round of cost-cutting, one of Africa’s leading e-commerce platforms Jumia Technologies is set to shut down its food delivery business, Jumia Foods in Nigeria and other countries where it operates by the end of 2023.
According to Vanguard Newspaper, this was made known on Thursday in a statement by Jumia CEO, Mr. Francis Dufay, who further disclosed that the move was to increase profitability as the company’s physical goods division will now receive more attention.
“The more we concentrate on our physical goods sector, the more we see Jumia has enormous growth potential and a clear route to profitability. “We have to focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow, with a path to profitability,” Dufay said.
The development will also decrease Jumia Food’s workforce, with some staff moving to the company’s core physical goods division. Other countries affected include Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.