ambbusiness.ng reports that, the Jumia Pay platform and the company’s main physical goods business are currently the company’s top priorities across its 11 operational nations.
Jumia Food has struggled to turn a profit since its founding, despite accounting for 11% of Jumia’s Gross Merchandise Value in the first nine months of 2023. This suggests that the total value of food sold on Jumia Food between January and September of 2023 was $64 million, or 11% of $581 million. a gauge of Jumia Food’s massive operational scale; however, it is not a profit gauge.
Although Jumia Food’s performance has been inconsistent since its founding, the company’s notable 82% year-over-year growth in 2021 demonstrated its strong position in the meal delivery market.
However, as a result of its decision to focus on profitable areas and reduce customer incentives in order to increase profitability, the company saw a significant decline in Quarterly Active Customers and Orders in 2023.
The company has stated that some Jumia Food employees will transfer to the main physical goods division, which suggests that some may be let go.
Bolt Food, a prominent player in the African food delivery industry, has announced its departure from South Africa and Nigeria in December 2023, coinciding with Jumia Food’s closure.
Despite Bolt Food’s efforts to expand into major Nigerian cities like Lagos, the company’s demise is ascribed to economic downturns, high inflation, and fierce rivalry from established rivals like Jumia Food, Gokada, and Uber Eats.
Crediblenews.ng
