Jumia Bites the Dust on Food Delivery in Africa: "Never Made a Single Coin"

Jumia, the African e-commerce giant, has dealt a bitter blow to food delivery dreams across the continent, announcing the shuttering of its Jumia Food operations in all seven markets where it currently operates. This includes prominent economies like Nigeria, Kenya, and Morocco. The decision, effective December 31st, 2023, marks a stark admission of struggle for the platform, with Jumia's CEO Sacha Poignonnec bluntly stating, "Jumia Food has never made a single coin" since its launch.

Poignonnec's words, quoted verbatim from the company's official statement, paint a sobering picture of the challenges faced by Jumia Food. Competition in the African food delivery landscape is fierce, with well-funded regional players like Glovo and Uber Eats dueling for market share. Additionally, the complexities of logistics and infrastructure in many African countries added significant headwinds to Jumia Food's profitability efforts.

The closure of Jumia Food is not just a financial setback for the company; it represents a missed opportunity for many Africans who have grown accustomed to the convenience of online food ordering. Jumia Food had established itself as a reliable platform for restaurants to reach customers and expand their reach, particularly in areas with limited internet access. The shutdown will undoubtedly leave a void in the sector, raising questions about the long-term sustainability of online food delivery in Africa.

However, amidst the closure, Jumia remains bullish on its core e-commerce business. The company plans to redirect resources and focus on strengthening its stronghold on online shopping across the continent. Additionally, JumiaPay, the company's fintech arm, will continue to operate in all eleven markets, highlighting Jumia's commitment to diversifying its revenue streams.

So, while Jumia Food might be bidding farewell, the company's broader journey in Africa seems far from over. The question remains – can Jumia leverage its existing strengths to weather the competitive storm and solidify its position as the leading e-commerce player in the continent's burgeoning digital landscape? Only time will tell if Jumia can rise to the occasion, leaving behind the bitter taste of Jumia Food's closure.