Startups & Venture Capital  Dec 14, 2023

n a bold pivot to sharpen its focus, Jumia, Africa's leading e-commerce titan, has announced the discontinuation of its culinary courier, Jumia Food, in several nations, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria, as the curtain falls on December 2023. This strategic retreat is designed to channel energies into fortifying their flagship retail platform and the burgeoning Jumia Pay service, spanning an 11-country stronghold.

Despite Jumia Food seasoning 11% of the company's Gross Merchandise Value (GMV) with a $64 million contribution in the initial three quarters of 2023, the service simmered on a low flame of profitability, prompting the platform to trim its menu of offerings. The decision to decommission Jumia Food follows a rollercoaster ride of soaring highs in 2021 and a sobering dip in consumer engagement this year, a downturn partly stirred by a recalibrated strategy to stew in profitability by nurturing high-performing categories and curbing promotional appetites.

Meanwhile, the African food delivery scene is witnessing a reshuffle, with Bolt Food packing up its bags in Nigeria and South Africa, citing economic headwinds, inflationary pressures, and a cutthroat market.

Yet, as some doors swing shut, others swing open. Barcelona's Glovo is dishing out its services across Sub-Saharan Africa, forging alliances with top-tier restaurant chains. On the home front, Nigeria's Chowdeck is savoring a feast of milestones, serving up a testament to its capital-smart approach, though the recipe for profitability remains elusive in the expansive food delivery kitchen.

The African food delivery sector is a smorgasbord of potential, with growth on the horizon, but the quest for profit is a tough nut to crack, mirroring the global grapples of giants like Doordash and Uber Eats have struggled to make profits despite raising billions of dllars and operating for close to a decade. The unit economics are ve

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