The once vibrant African e-commerce platform Jumia has announced the closure of its food delivery business, Jumia Food across all its markets in Africa.
Jumia has been struggling to remain afloat with challenges facing its business including theft by employees, and losses due to fewer sales among others.
The company now says that it will focus on the physical delivery of goods and its payment systems business as it continues to strategize on cutting costs and enhancing its business.
Read Also: Jumia Appoints Charles As New Kenyan CEO.
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. “We have not made any profits from Jumia Food since we launched it,” said Jumia in a statement.
“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.”
Here is the full statement from Jumia:
Read Also: Jumia Employees Stole Ksh 21 Million Through System Manipulation