Glovo Withdraws From Ghanaian Market

Glovo, a delivery service provider, has announced its decision to withdraw from the Ghanaian market effective May 10, 2024 citing issues with profitability and a review of its objectives for investment.

Orders placed through Glovo’s official customer app would no longer be accepted after that date, according to the notice sent to one of its clients. The decision to leave Ghana was reportedly made three years after the company invested $3.7 million to enhance and broaden its services in the West African nation.

Dima Rasnovsky, the regional general manager of Glovo Africa, said the recent development is a result of the company reassessing its investment priorities.  “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,” Rasnovsky said.

The delivery platform said via email, “While we recognize the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period.”

Glovo has a strong presence in 23 countries across Europe, Central Asia, and Africa, 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.

“This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us to better serve the millions of customers who use the Glovo app every day,” Dima said.

The company promised to give its local team and riders severance benefits that exceed the legally required minimum. To make sure everyone is aware of the situation, all couriers, partners, and consumers will also be effectively informed about the new decision.

Glovo declared that, despite its intended withdrawal from the Ghanaian market, it is still dedicated to offering the best possible service to the nations in which it presently conducts business and that it will benefit from its decision to do so.

The organisation acknowledged that Ghana has potential, but it also stressed that achieving profitability in the market will take time and a substantial investment. The company decided to concentrate its efforts in the 23 other African nations where it presently has operations.

Glovo’s exit from Ghana aligns with similar trends observed in the broader African delivery landscape. Much like Glovo, Jumia Foods, a significant participant in the African food delivery industry, ceased operations in seven African nations last year focusing on expanding its core online retail business. Similarly, Bolt Foods exited the Nigerian and South African markets in 2023 to optimize its resources and efficiency.

“We thank our teams, partners and riders in the country for the dedication to growing Glovo in Ghana over the last years.” said Dima Rasnovsky, Regional General Manager Glovo Africa.