Glovo to cease operations in Ghana by May 10, 2024, citing profitability concerns
The leading food delivery platform, has announced its intention to withdraw from the Ghanaian market
Glovo, a leading food delivery platform, has announced its intention to withdraw from the Ghanaian market by May 10, 2024, after investing approximately €3.5 million ($3.7 million) to expand its services in the country over the past two years.
Read full articleThe decision comes as the company faced challenges in achieving profitability within the Ghanaian market, prompting a strategic shift in focus towards consolidating its presence in other African markets.
The company communicated its decision to end operations in Ghana to its network of restaurant partners via email, citing the need for substantial investment over an extended period to build a stronger position and achieve profitability in the Ghanaian market.
Glovo plans to redirect its resources towards enhancing its services in the other 23 countries where it operates, aiming to better serve its millions of customers.
According to Glovo, as of 10 p.m. on May 10, 2024, the Glovo app will no longer accept orders in Ghana. The company also assured its restaurant partners that outstanding payments would be settled in accordance with the terms and conditions agreed upon.
In 2021, Glovo Co-founder Sacha Michaud expressed optimism about the company's prospects in Ghana, highlighting ongoing investments to expand services across all regions of the country.
Despite collaborating with approximately 400 partners in Accra, including pharmacies, groceries, electronics, and restaurants, Glovo Ghana faced challenges amidst fluctuating order growth rates.
Industry reports indicate that Ghana's online food delivery sector is expected to generate revenue of US$224.60 million in 2024, with an annual growth rate of 19.37% (CAGR 2024-2029), potentially reaching a market volume of US$544.30 million by 2029.
Glovo's decision to withdraw from Ghana aligns with similar actions taken by other industry players, such as Jumia and Bolt Food, reflecting the competitive and evolving nature of the online food delivery sector in Africa.
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