Shortly after Procter and Gamble, a renowned multinational company, announced plans to exit Nigeria, famous food-hailing service, Jumia Food announced that it would be leaving Nigeria at the end of 2023.
Naija News reports that the development further raises concerns regarding the number of Nigerians who will be rendered jobless as a result of the mass exodus of multinationals from Nigeria.
By the end of December 2023, Jumia will stop operating its food delivery service, Jumia Food, in all of the countries in which it currently operates, including Nigeria, Kenya, Morocco, the Ivory Coast, Tunisia, Uganda, and Algeria, according to a report by Punch Newspaper.
The Jumia Pay platform and its primary physical goods business remain the company’s top priority across its eleven operational nations.
Since its establishment, JumiaFood has struggled to earn a profit despite accounting for 11% of Jumia’s Gross Merchandise Value in the first nine months of 2023. This shows that food sales on JumiaFood totalled $64 million, or 11% of $581 million, between January and September of 2023, a measurement of the massive scale at which Jumia Food operated; which however does not translate to profit for Jumia.
Although Jumia Food’s performance has been inconsistent since its founding, the company’s notable 82% year-over-year growth in 2021 demonstrated its strong position in the meal delivery sector.
However, in 2023, the company’s Quarterly Active Customers and Orders declined significantly as a result of its decision to focus on lucrative regions and reduce customer incentives in order to boost profitability.
Concerning the workforce, the corporation states that many of them would be transferred to the main physical goods sector, meaning that others may be laid off.
This development comes a few days after multinational giant Procter and Gamble announced plans to exit the country.
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Economists have continued to raise concerns over the mass exodus of multinationals, with many calling on President Bola Tinubu to devise policies and strategies to attract more foreign investors.
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