Glovo to shut down in Ghana

Glovo, a prominent food delivery platform, has announced its decision to end operations in Ghana on May 10, 2024, despite significant investment in the last two years to expand their business.

The company conveyed this development to its network of restaurant partners via email, attributing its decision to profitability issues encountered within the Ghanaian market.

Glovo explained that it will shift its focus towards consolidating its presence in other African markets such as Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.

“We are reaching you to communicate that Glovo has made the decision to close our Ghana operations by May 10th 10:00 pm. The decision to end our operations in the country is based on a reassessment of our investment priorities as we focus our resources on the other 23 countries where Glovo operates.”

“As your service provider company will also inform you, the app and the slots will remain active until May 10th, 10:00 pm… after that, the app will close and won’t be able to book any slots.”

In 2021 co-founder of Glovo, Sacha Michaud said the company was investing 1.7 million euros in the company.

“The Ghanaian market is a promising market for Glovo and we will continue to invest to reach all the regions of the country and bring convenience to people,” he said at the time.

Glovo, a technology delivery company established in 2015, with headquarters in Barcelona, Spain, entered the Ghanaian market in March 2021.

Mr. Michaud said Glovo entered the Ghanaian market to help provide the convenience for people to order products online and be delivered to them in the comfort of their homes.

Mr. Michaud during the launch said Ghana’s growing population and increasing internet penetration were good for business.

Ghana, he said, was among the seven countries Glovo was operating in Africa and mentioned other markets including Kenya, Nigeria, and South Africa.

Mr Michaud said Glovo Ghana was working with about 400 partners in Accra such as pharmacies, groceries, electronics, and restaurants.


Source: Citi Business

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