African e-commerce firm, Jumia Technologies has set to close its food delivery business in all seven countries in which the unit operates by the end of the year to focus on growing its core online retail business.
INFORMATION NIGERIA learnt that more Nigerians might end up losing their job as a result of the mass exit of the online company in Nigeria.
It was gathered that Jumia food is currently operating in Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
The move is in line with Jumia’s strategy to optimize its capital and resource allocation and to continue its path to profitability, adding that Jumia Food is not suitable to the current operating environment and macroeconomic conditions.
Jumia Food represents about 11% of Jumia’s general merchandise value for the nine months ended Sept. 30, and has not been profitable since its inception.
READ MORE: Jumia CEOs Step Down As Company Suffers Losses
According to the company’s CEO, Francis Dufay, in a statement released on Wednesday, cited a clear focus on the company’s core physical goods business and Jumia Pay platform as the reason for the exit.
He said: “The more we concentrate on our physical goods business, the more we recognize the substantial opportunities for Jumia to flourish and achieve profitability.
“Hence, we must make the right decision by directing our management, teams, and capital resources towards seizing this opportunity.”
“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.”
