Shifting Focus to More Established Markets

In an email to restaurant partners, Glovo announced their decision to concentrate on markets where they have a stronger presence and can ensure profitability. These markets include Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.

“While Ghana holds promise, building a dominant market position and achieving profitability would require significant investment over a longer period,” Glovo stated in the email. “We’ve made the strategic decision to redirect resources to our 23 other operational countries to better serve our existing customer base.”

Ghana’s Food Delivery Landscape: Challenges and Growth

This news comes amidst a backdrop of challenges facing the online food delivery industry in Africa. Issues like high taxes, low rider wages, and rising inflation are impacting the entire ecosystem.

Despite these challenges, the Ghanaian online food delivery market is projected to reach US$224.6 million in revenue by the end of 2024, with a growth rate exceeding 19% annually. This is expected to translate to a market size of US$544.3 million by 2029.

Glovo’s Previous Optimism and Market Shift

In 2021, Glovo co-founder Sacha Michaud expressed optimism about Ghana’s potential, highlighting the country’s growing population and internet penetration as key advantages. He also mentioned collaborations with over 400 partners across various sectors in Accra, including restaurants, pharmacies, and electronics stores.

However, the current market realities seem to have forced a shift in strategy. Glovo’s exit follows Jumia Food’s departure from Ghana in December 2023. While Bolt Food remains operational in Ghana, they have exited other African markets like Nigeria and South Africa.

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