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Glovo, a meals supply large in Africa, has introduced that will probably be exiting the Ghanaian market on Could 10, 2024, citing profitability challenges and a reassessment of funding priorities.
Based on Enterprise Insider Africa, the choice to tug out of Ghana got here three years after the corporate’s funding of $3.7 million to deepen and broaden its providers within the West African nation.
Regional Common Supervisor of Glovo Africa, Dima Rasnovsky, stated the latest growth is a results of the corporate reassessing its funding priorities.
- “Following a reassessment of the corporate’s funding priorities, Glovo has determined to stop operations in Ghana by Could 10, 2024. Glovo will give attention to rising and strengthening its place in different African international locations. We thank our groups, companions, and riders within the nation for the dedication to rising Glovo in Ghana over the past years,” he stated.
- The supply platform stated through electronic mail, “Whereas we acknowledge the potential of the Ghana market, constructing a stronger place out there and reaching profitability would require substantial funding over an prolonged interval.
- “For this reason we’ve determined to redirect our assets in direction of the opposite 23 international locations the place Glovo operates, enabling us to raised serve the tens of millions of consumers who use the Glovo app each day,” Dima stated.
The Glovo group stated it might present severance packages to its native group and riders that exceed the legislative minimal.
As well as, all couriers, companions, and prospects will probably be successfully communicated concerning the new resolution to make sure they’re knowledgeable concerning the state of affairs.
Regardless of the deliberate exit from the Ghana market, Glovo acknowledged that it stays dedicated to offering top-notch service to the international locations it at the moment operates and believes that its resolution to tug out of the Ghanaian market will strengthen its place in different markets.
What to know
- Glovo operates in 23 international locations throughout Europe, Central Asia, and Africa, with Africa being a key area for the corporate. It has a powerful presence in international locations corresponding to Ivory Coast, Kenya, Morocco, Nigeria, Tunisia, and Uganda.
- Jumia Meals, one other fledgling meals supply firm in Africa, introduced it was exiting seven African international locations final yr to focus on the growth of its core on-line retail enterprise.
- Bolt Meals additionally pulled out of the Nigerian and South African markets to converge its assets and maximize its effectivity.
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