Glovo Exits Ghanaian Market, Cites Profitability Issues As Main Reason For Decision
- Food delivery platform Glovo has announced its decision to leave the Ghanaian market on May 10
- The company cited profitability issues as the main reason for its departure and noted that it would be shifting focus to its other markets in 23 other countries
- In 2023, Jumia Food also shut down after the parent company decided to focus on only its physical outlets
Food delivery platform Glovo has announced its plan to end operations in Ghana on May 10, 2024.
The company cited profitability issues within the Ghanaian market as the reason for its early departure despite significant investment in business expansion in the last two years.
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This was contained in a memo shared with the company’s network of restaurant partners via email.
According to the company, it will be shifting its resource investments to other countries where it operates to optimise its service delivery.
Glovo is active in 23 other countries worldwide, including Morocco, Uganda, Kenya, Ivory Coast and Nigeria.
Glovo informed partner restaurants that following the decision, it will officially shut down on May 10 at 10pm, after which no more orders can be made on the app again.
Meanwhile, restaurant partners will receive outstanding payments following the terms and conditions.
This comes two years after Glovo's co-founder, Sacha Michaud, said Ghana was a promising market for the company.
He noted that Ghana’s rapidly growing population and increased internet infiltration were upsides for expanding into the country.
As of 2024, Glovo Ghana had contracted approximately 400 businesses in Accra, including pharmacies, restaurants, food stalls, and grocery stores, to deliver conveniently to customers’ doorsteps.
Last year, 2023, Jumia Food delivery service shut down operations in Ghana and across the continent.
Bawumia to boost local industry
In a separate story, YEN.com.gh reported that the New Patriotic Party flagbearer and Vice President Mahamudu Bawumia has assured that businesses and individuals will have a clean tax slate under his presidency if he wins power.
Bawumia said a new tax regime was necessary to boost the private sector. He spoke at a stakeholder interaction with members of the Ghana National Chamber of Commerce and Industry in Accra on March 21.
"Our tax system has been the same since independence, and it has not helped us, so we have to change it," he said.
Bawumia has already indicated he wants to usher in a new tax regime with a flat rate, making Ghana one of the most tax-competitive countries in the world.
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Source: YEN.com.gh
