Glovo Shuts Down Operations In Ghana Citing Profitability Challenges

Glovo a food delivery platform in Africa, has announced it will be shutting down operations in Ghana on May 10, 2024.

This decision comes two years after the company’s investment of €3.5 million ($3.7 million) to expand its services in the region.

Regional General Manager Glovo Africa, Dima Rasnovsky, said the development stems from the reassessment of the company’s investment priorities.

What Manager said:

“Following a reassessment of the company’s investment priorities, Glovo has decided to cease operations in Ghana by May 10, 2024. Glovo will focus on growing and strengthening its position in other African countries. We thank our teams, partners and riders in the country for the dedication to growing Glovo in Ghana over the last years,” he said.

The delivery platform said via email, “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.

“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 said it is dedicated to providing the local team with severance pay that exceeds the legislative minimum.

Additionally, all couriers, partners, and customers will receive comprehensive communication from Glovo regarding the closure to ensure they are informed about the situation.

Glovo’s operations

Glovo operates in 23 countries across Europe, Central Asia and with Africa being a key region for the company. It has a strong presence in countries such as Ivory Coast, Kenya, Morocco, Nigeria, Tunisia and Uganda.

The company noted that it remains committed to its operations in the remaining countries where it currently operates and believes that this decision will strengthen the platform’s position in the other markets.

Like Glovo, Jumia Foods, another major player in the African food delivery market ceased business in seven African countries last year. Similarly Bolt Food, recently announced its exit from Nigeria and South Africa in December 2023 to streamline its resources and maximise its overall efficiency.