Glovo, a prominent food delivery platform operating in Africa, has declared its decision to cease operations in Ghana effective May 10, 2024.
This announcement arrives two years after the company invested €3.5 million ($3.7 million) to enhance its services within the region.
Dima Rasnovsky, the Regional General Manager for Glovo Africa, explained that this decision was based on a strategic reassessment of the company’s investment priorities. He stated, “Following a reassessment of the company’s investment priorities, Glovo has decided to cease operations in Ghana by May 10, 2024.
Glovo will focus on growing and strengthening its position in other African countries. We thank our teams, partners, and riders in the country for their dedication to growing Glovo in Ghana over the last years.”
In a communication sent via email, the company elaborated, “While we recognize the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period of time. This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us better serve the millions of customers who use the app every day.”
Glovo also confirmed its commitment to providing severance pay to the local team, which will exceed the legislative minimum, and stated that all couriers, partners, and customers would receive comprehensive communication regarding the closure to ensure they are well informed about the situation.
Currently, Glovo operates in 23 countries across Europe, Central Asia, and Africa, with Africa being a critical region for the company. Despite the exit from Ghana, Glovo maintains a strong presence in several other African countries including Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda.
The company emphasized its dedication to its operations in the remaining markets, believing that this strategic shift will bolster its position in other territories.
This move follows a similar pattern in the industry, as evidenced by Jumia Foods and Bolt Food, which also recently scaled down their operations in multiple African countries to streamline resources and maximize efficiency.
Read Also:Food Insecurity, Hardship Will Soon Come To An End – President Tinubu