Glovo, a famous food delivery platform, has stated that it would cease operations in Ghana on May 10, 2024, marking a big exit from the Ghanaian market after investing €3.5 million ($3.7 million) to grow its services over the past two years.
The firm communicated this news to its network of restaurant partners via email, citing profitability concerns in the Ghanaian market. As a result, Glovo will focus on strengthening its position in other African markets, including Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.
In a statement sent via email, Glovo mentioned, “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”.
The notice also stated that the Glovo app will no longer accept orders in Ghana beginning at 10 p.m. on May 10, 2024. Furthermore, any outstanding payments owing to restaurant partners will be settled in line with the terms and circumstances agreed upon.
In 2021, Co-founder Sacha Michaud voiced confidence about Glovo’s prospects in Ghana, citing continuing investments to expand services across the country and provide ease to its consumers. He cited Ghana’s expanding population and higher Internet penetration as positive elements for corporate growth.
Read Also: US Army Major Convicted of Smuggling Guns to Ghana
Despite working with about 400 partners in Accra, including pharmacy, supermarkets, electronics, and restaurants, Glovo Ghana had obstacles despite the optimistic market circumstances indicated by Michaud. Glovo Ghana services’ order growth ranged between 30-45 percent every month.
According to industry sources, Ghana’s online meal delivery business is expected to earn US$224.60 million in sales in 2024, with a 19.37% annual growth rate (CAGR 2024-2029), potentially reaching a market volume of US$544.30 million by 2029.
Glovo’s decision is consistent with similar steps made by other industry heavyweights; Jumia ceased operations in Ghana in December 2023, while Bolt Food has quit Nigeria and South Africa but continues operating in Ghana.
