Glovo’s Post

Glovo To Shut Down Ghana Operations by May 10. Glovo has announced that it will be ending its services in Ghana on May 10, 2024. This decision comes after the company invested €3.5 million (about Ksh. 497 million) to expand its services in the region two years ago, in 2021. Dima Rasnovsky, Regional General Manager of Glovo Africa, said that the decision was made after a thorough reassessment of the company's investment priorities. "After careful consideration, we have decided to concentrate on strengthening Glovo's presence in other African markets where we see greater long-term potential," said Rasnovsky. He thanked the Ghana team for their hard work and assured them that the company would provide severance packages exceeding local statutory requirements. The decision to withdraw from Ghana is part of a larger trend in the food delivery industry in Africa. Many companies have been consolidating their operations due to profitability challenges. Last year, Jumia Foods pulled out of seven African markets, and recently, Bolt Food announced its exit from Nigeria and South Africa, highlighting the dynamic and competitive nature of this sector. Despite its exit from Ghana, Glovo remains active in 23 countries, including countries like Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda. The company is confident that this consolidation will strengthen its operations and enhance its market position across the remaining regions. #Glovo #FoodDelivery #GhanaExit #AfricaBusiness #TechInAfrica

Glovo Ceasing Operations In Ghana [Transcript]: Glovo has announced its decision to halt operations in Ghana effective May 10th. This decision was communicated through a notice to one of its clients, informing them that the Glovo app will no longer be accessible for orders after that date. As explained by Glovo, stems from the need for an "extended period of time" to strengthen its market position and achieve profitability. Consequently, the company has chosen to reallocate its resources to enhance operations in the other 23 countries where it operates. Glovo's foray into the Ghanaian market was part of a broader strategic initiative within Africa. In October 2021, the company invested $30M to introduce its food delivery services to six African countries, including Ghana. The launch in Ghana, which took place in March 2021, was accompanied by a commitment. The decision to cease operations in Ghana highlights the competitive landscape and challenges faced by delivery service providers in emerging markets. #PeaceStudiosAfrica #NewsNetwork #Business #Glovo A Peace Entertainment Group (PEG) Cooperation (c) 2024 Watch Full Story 👉 : https://lnkd.in/g6uA-9nd

Glovo has appointed Daphne Kabeberi as its Impact and Sustainability Lead for Africa, signaling a pivotal step in bolstering its commitment to social and environmental responsibility across the continent. In her new role, Daphne will spearhead Glovo's sustainability agenda, ensuring that the company's operations foster meaningful contributions to local communities and environmental well-being. Sébastien Pellion, Glovo's Global Head of Impact & Sustainability, expressed enthusiasm about Daphne's appointment, highlighting her extensive experience and dedication to community welfare. He emphasized confidence that under her leadership, Glovo's sustainability initiatives in Africa will achieve new heights, aligning with their vision of creating positive social impact. Prior to joining Glovo, Daphne served as Program Lead at Tunapanda Institute, where she championed training programs empowering digital workers from marginalized backgrounds. Her role at Endustrial Support as Lead Sustainability Engineer further underscores her proficiency in implementing eco-friendly practices, including the successful adoption of "Green Key" eco-label standards in hospitality, driving significant environmental and economic benefits. In her statement, Daphne expressed excitement about her new role, describing Glovo as a vibrant organization poised to set benchmarks in impact and sustainability across Africa. She articulated her commitment to guiding Glovo towards becoming a pioneer in sustainability initiatives, affirming her readiness to lead efforts that will leave a lasting positive imprint on the continent. #ImpactLeader #EnvironmentalStewardship #SustainabilityLeader #EnvironmentalImpact #Leadership #CommunityImpact #Glovo #Sustainability #Impact To read more: https://zurl.co/Vg9x

My own opinion. The decision to close Jumia Food, as explained by the company's representative, was not a sign of struggling but rather a strategic move to capitalize on the growth opportunities within Jumia Uganda's core e-commerce business. This decision reflects a forward-thinking approach aimed at optimizing resources and talent to enhance the overall customer experience and product selection. It's evident that Jumia is committed to prioritizing its strengths and investing in areas with the greatest potential for growth. By consolidating efforts on its e-commerce platform, Jumia can better serve its customers and strengthen its position in the market. For those who may have concerns about the closure of Jumia Food, it's essential to understand that strategic decisions like these are often made with careful consideration of long-term objectives and market dynamics. While change can be challenging, it also presents opportunities for innovation and evolution. As for advice for Jumia Foods, it's crucial to focus on continuous improvement and adaptation to changing consumer preferences and market conditions. Leveraging data-driven insights, investing in technology and infrastructure, and maintaining a customer-centric approach are key factors for success in the competitive food delivery industry. while the closure of Jumia Food may mark the end of one chapter, it also opens up new possibilities for growth and innovation within Jumia's broader e-commerce ecosystem. #Jumiafood #jumiaecommerce

After Glovo's acquisition, Delivery Hero has purchased all outstanding minority shareholdings—amounting to a 37% stake—in HungerStation Holding, which operates Delivery Hero in Saudi Arabia. HungerStation’s revenue grew by 36% to $676.7 million (EUR 609 million) in fiscal 2022 with positive earnings before interest and tax (EBIT) of more than $55.6 million (EUR 50 million), including group costs. The company connects more than 10,000 partners with customers in Saudi Arabia. The food delivery sector is highly competitive with multiple companies operating in the space. This is why companies tend to acquire competitors in the industry to achieve scale.

[KEETA's 2nd Month in Hong Kong] Following our latest blog about #Keeta starting in Hong Kong, here's an update. In its first month, Keeta only operated in a limited region around Mongkok/Tai Kok Tsui. Not long after, in a bold move, Keeta quickly expanded its service range to include more regions within Kowloon, namely Tsim Sha Tsui, Hung Hom, and Sham Shui Po. According to Measurable AI’s data on delivery orders (given that Keeta still hasn’t yet introduced a pickup service), within a span of just its second month (from June 27 to July 27) in the Hong Kong landscape, Keeta managed to carve out an impressive 10% share in terms of delivery-only order volume. Deliveroo and Foodpanda claimed around 40% and 50%, respectively. https://lnkd.in/gyFDMKUN #Meituan #fooddelivery #consumerinsights #alternativedata

Glovo to shut down in Ghana, two years after investing $3.7 million According to the company, it decided to cease operations due to profitability issues in the Ghanaian market. Ghana's online food delivery market is expected to generate US$224.60 million in revenue in 2024, with a 19.37% annual growth rate (CAGR 2024-2029), resulting in a projected market volume of US$544.30 million by 2029.

Getir is reported to prepare an exit from Germany, Netherlands, and the United Kingdom by focusing more on its home market in Turkey and with some kind of a presence in the United States! I actually still remember talking to one Gorillas manager stating that they will only focus on growth and don't care about profit. And now the whole European organization is closing down. CRAZY! This follows one year full of great upheaval for Getir, which has seen it exit Italy, Portugal, and Spain, and fail to acquire German market leader Flink but still manage to complete the acquisition of Gorillas The depth of this strategy is, therefore, immense. Based on the fact that there are 1,500 jobs reported at risk in the UK alone, it follows that the total jobs at risk in other markets still remain largely unclear at this point. My learning on this: Monetization isn't a small thing. Only focusing on growth doesn't pay-off in the long-run. #QuickCommerce #BusinessStrategy #ECommerce Photo by Metin Ozer on Unsplash

Glovo's Bold New Strategy for Africa Following Ghana Exit Glovo announced its decision to exit #Ghana, citing profitability concerns as the primary reason. Since its launch in Ghana in 2021, Glovo had invested approximately €3.5 million ($3.7 million). However, high interest rates and operational costs proved challenging. Co-founder Sacha Michaud explained to Business Insider Africa that Ghana's economic environment, marked by high interest rates and internal issues, hindered the company's ability to maintain a profitable business in the mid-term. Michaud emphasized that the situation in Ghana is not indicative of Glovo's potential in other #African markets. "We don't see the same challenges in other African markets where we operate. In Ghana, the macroeconomic situation affected our ability to build a sustainable business," he noted. Despite the exit, Michaud praised the Ghana team's efforts and acknowledged their success before the economic downturn. Glovo remains steadfast in its ambitious plans for Africa, focusing on doubling its investment in the region. Since launching in Morocco six years ago, Glovo has invested over €160 million across Africa. Michaud expressed optimism about the region's growth potential and the opportunities for digitalizing local businesses. "Many businesses in Africa have never sold online. #Digitalizing them is a massive opportunity, and the society is highly digital with mobile payments. We’re very excited about the next six years on the continent," he said. Looking ahead, Glovo plans to expand further across Africa, starting in major cities and moving into secondary ones. The company is also keen on growing its quick commerce segment, which includes non-restaurant items like groceries and electronics. Michaud revealed that this segment is rapidly growing and could surpass restaurant deliveries by the end of the decade. "Quick commerce will be bigger than restaurant deliveries before the end of this decade. In Kenya, for instance, the non-restaurant category is almost as large as restaurant deliveries and is growing much quicker," he stated. Despite exiting Ghana, Glovo's commitment to Africa remains unwavering. The company sees significant potential in the region and aims to continue supporting local businesses while expanding its footprint across the continent. Stay ahead with the latest in food delivery news from Camel Crunch.

It seems food delivery has never been profitable. A business that generates high revenue might not necessarily translate into profitability. While it might bring in substantial income (gross), the expenses, operational costs, or other financial burdens could eat into those earnings, leaving the business without actual profit. Talk about factors like high production costs, excessive overheads, or inefficient operations. So you have a high-revenue, low-profit scenario. You hear companies like Chowdeck and Jumia etc claiming to have processed 1 billion+ in Gross Merchandise Value. Fintechs will say they have processed 10 billion in transaction volume. None of this means they have made any profit, or that they are profitable businesses. There’s just a lot of cashflow. When you start deducting expenses, it becomes clear. It should explain why edenlife pivoted to the e-commerce marketplace model even after running its own kitchens to control more of the entire supply chain.