More Nigerians To Lose Jobs As Jumia Food Exits By End Of December

Shortly after Procter and Gamble, a renowned multinational company, announced plans to exit Nigeria, famous food-hailing service, Jumia Food has revealed that it would be leaving the country at the end of 2023.

This strange development continues to raise concerns regarding the number of Nigerians who will become jobless by the end of 2023.

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.

Such countries include Nigeria, Kenya, Morocco, the Ivory Coast, Tunisia, Uganda, and Algeria.

Top Priority

The Jumia Pay platform and its primary physical goods business remain the company’s top priority across its eleven operational nations.

Since its establishment, Jumia Food 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 Jumia Food grossed $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.

Jumia Food’s performance has been inconsistent since its founding.

But, the company’s notable 82% year-over-year growth in 2021 demonstrated its strong position in the meal delivery sector.

The Focus

However, in 2023, the company’s Quarterly Active Customers and Orders declined significantly.

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This was 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 says many of them would be transferred to the main physical goods sector, meaning that others may be laid off.

Economists have continued to raise concerns over the mass exodus of multinationals.

Many have gone steps further to call on President Bola Tinubu to devise policies and strategies to attract more foreign investors rather than scaring away the existing investors.