Jumia will shut down its food delivery business

❓️ Who they are - Jumia, Arica’s biggest ecommerce company, is planning on shutting down food delivery services. It cited operating environment and macroeconomic conditions as its reason and said that delivery only accounted for 11% of Gross Merchandise Value, making it unprofitable.

🛣️ The road to profitability - Jumia is currently trying to become more profitable by changing how its resources are allocated. They have been trimming losses which actually improved by 67% from the previous year. Some of its other cost cutting strategies include:

• Suspending most of its logistics as a service in most of its markets

• Stopping Jumia Prime, its subscription loyalty program