🚲 Glovo exits Ghana
Glovo, the food delivery platform, announced its exit from Ghana on May 10, 2024, just two years after investing €3.5M ($3.7M) in the market. The decision was communicated via email to restaurant partners. The company's focus will now shift to other African markets like Morocco, Uganda, Kenya, Côte d'Ivoire, and Nigeria.
📉 Struggles in Ghana
The company cited profitability issues as the reason for leaving Ghana. The market, while promising, required substantial investment to become profitable. Glovo stated, "Building a stronger position in the market and achieving profitability would require substantial investment over an extended period of time."
🚀 Future focus
Glovo’s strategy now centers on strengthening its presence in the other 23 countries where it operates. The platform highlighted its dedication to serving millions of customers daily. The company also launched "The Courier’s Pledge" in Nigeria to benefit drivers. As of 10 p.m. on May 10, 2024, Glovo's app in Ghana will be unavailable for ordering, and partners will receive outstanding payments per their agreements.
🌍 Market trends
In Ghana, the food delivery market is projected to reach $224.6M in 2024, with a CAGR of 19.37% until 2029. The sector faces challenges like high taxes, low wages, and high inflation. Similar exits have occurred, with Jumia Food leaving Ghana and Nigeria, while Bolt Food exited Nigeria and South Africa but remains active in Ghana. Co-founder Sacha Michaud noted that Ghana’s growing population and Internet penetration were initially advantageous for Glovo.
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