Glovo has pulled out of the Ghanaian market, citing problems with profitability and a review of its investment goals.
Delivery service provider Glovo has declared that it will leave the Ghanaian market on May 10, 2024, citing problems with profitability and a review of its investment goals. The warning given to one of Glovo’s customers stated that orders placed through the company’s official customer app would no longer be accepted after that date.
Glovo’s Investment and Decision
Three years after investing over $3.5 million to improve and expand its services in the West African country, the corporation apparently decided to depart from Ghana. Glovo Africa’s regional general manager, Dima Rasnovsky, said that the company’s reevaluation of its investment priorities is what led to the latest development.
Glovo made the decision to end operations in Ghana on May 10, 2024, after reevaluating its investment priorities. Glovo planned to concentrate on expanding and fortifying its position in other African nations. She went on by saying they were grateful to their teams, partners, and riders for their commitment to expanding Glovo in Ghana over the past few years.
Glovo’s Official Email Statement
This stated that they recognise the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period, the delivery platform stated in an email.
Africa is a crucial region for Glovo, which has a significant presence in 23 countries throughout Europe, Central Asia, and Africa. Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda are among the nations where it is most prevalent.
Redirection of Resources
“In order to better serve the millions of customers who use the Glovo app every day, we have decided to redirect our resources towards the other 23 countries where Glovo operates,” Dima stated.
The business pledged to provide severance payments to its local team and riders that go above and beyond the legally mandated minimum. The new decision will be effectively communicated to all couriers, partners, and customers to ensure that everyone is aware of the situation.
Commitment to Remaining Markets
The manager stated that it is committed to providing the greatest service to the countries in which it now operates and that it will profit from its choice to leave the Ghanaian market. While acknowledging Ghana’s potential, the firm emphasised that it will take time and a significant investment to become profitable in the market. The business made the decision to focus its efforts on the 23 other African countries where it currently operates.
Industry Trend in Africa
Glovo’s withdrawal from Ghana is consistent with comparable patterns seen in the delivery environment throughout Africa. Similar to Glovo, Jumia Foods, a major player in the African food delivery market, shut down operations in seven African countries last year in order to concentrate on growing its primary online retail business. In a similar vein, Bolt Foods left the South African and Nigerian markets in 2023 in order to maximise its efficiency and resources.
Appreciation from Management
They also appreciated the commitment to expanding Glovo in Ghana over the past few years their teams, partners, and riders in the nation.
Conclusion
Glovo’s decision to exit the Ghanaian market marks a significant shift in the country’s delivery ecosystem. While the company acknowledges Ghana’s potential, its choice reflects the growing need for strategic focus and long-term profitability. The move also draws our mind in a wider industry trend across Africa, where several delivery platforms are restructuring to strengthen their core operations.
Although Glovo’s departure may affect customers, riders, and partners in the short term, it also highlights the importance of sustainable investment within emerging markets. As Glovo redirects its resources, Ghana’s digital delivery landscape may open opportunities for new or existing competitors to innovate and grow. Read more on From Plastic to Planet-Friendly: MTN Ghana’s Green SIM Card Revolution.
