Food delivery app Glovo is shutting down operations in Ghana as of May 10, 2024.
The company says it will focus its efforts on more profitable African markets.
Despite a promising Ghanaian market with a growing population and improving internet access, high inflation and increased taxation made continued investment unsustainable.
“While we recognise the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period of time,” Regional General Manager Glovo Africa, Dima Rasnovsky, said in a statement.
“This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us better serve the millions of customers who use Glovo app everyday.”
Glovo invested US$3.7 million in 2022 to expand in Ghana but needed help to achieve profitability.
However, Glovo’s Ghanaian operations grew slower (30-45% month-on-month) compared to its dominant markets.
Following Jumia Food’s departure in December 2023, this exit could negatively impact Ghana’s retail and restaurant sectors, which relied on delivery services offered by these platforms.
Glovo has a strong presence in Kenya, Morocco, Uganda, Cote D’IGhana’sand Nigeria.
