Jumia to close food delivery business

Business
By Standard Reporter | Dec 14, 2023
Jumia set to close its food delivery business. [File, Standard]

Jumia technologies is set to close its food delivery business in a bid to cut costs.

According to Reuters, Jumia will focus on growing its online retail business.

"It's a segment that's very difficult across the world, with very challenging economics and big losses. It's also a segment that is extremely competitive across the world and Africa," Chief Executive Officer Francis Dufay told Reuters.

"The economics are tough in this market because the costs are very high and there is plenty of competition so there is downward pressure on the commissions that we make and upward pressure on marketing costs because everyone is fighting for customers."

Some of the countries that Jumia operates in are; Kenya, Algeria, Egypt, Ghana and Senegal.

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