Big news alert! Jumia Food, the app that brought yummy meals right to your door, is saying goodbye to Nigeria and a bunch of other African countries. It’s like taking the Popsicle out of a kid’s mouth throwing it away, and people are curious about why.
And that brings me to the question, Why? Why shutdown after 10 years in the game? If you are not familiar with Jumia Food (Which i doubt), let me quickly tell you about them.
Jumia Food is a start-up company headquartered in Nigeria. It was launched in June 2013. Jumia Food believes that ordering food online should be easy, fast and definitely fun! They wanted to provide their clients the best online food ordering experience, so they made it. They made the start-up Jumia Food – an online food delivery service, which simplifies food ordering for Nigerian people before expanding to some other African countries. Simply choose the food you want on their online menus, and it would be delivered to you at home.
So Why Is Jumia Food Shutting Down?
Okay, here’s the scoop: Jumia wants to focus more on its main stuff – selling things online and making payments with JumiaPay. After checking everything, they found out that delivering food wasn’t working well in the current situation. It’s like they’re switching from making pizzas to selling sneakers because that’s what people really want.
Check out the News Excerpt below:
Jumia Food to Exit Nigeria, Kenya, Five Others
Jumia is shuttering its food delivery service, Jumia Food, in Nigeria by the end of December 2023.
Nigeria is not the only operating country it will be exiting as it would be doing so in Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria.
The company will now focus on its core physical goods business and the Jumia Pay platform across Nigeria and 10 countries of its operations.
Speaking on the exit, Mr Francis Dufay, Chief Executive Officer of Jumia, said the focus will now go to its physical goods business as it targets boosting profitability.
“The more we focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow, with a path to profitability.
“We must make the right decision and fully focus our management, our teams and our capital resources to go after this opportunity. In the current context, it means leaving a business line, which we believe does not offer the same upside potential – food delivery,” he said.
The move will also see Jumia Food reduce its headcount as the company signed that some employees will transition to the core physical goods segment.
It has been a challenging environment for businesses in Nigeria amid surging inflation. For food businesses, Jumia Food has to compete with the likes of Glovo and Chowdeck.
Do you agree with Jumia? Nigerians love food. We love to eat and eat well. So what could be the reason for Jumia Food not making a profit from their services?
Let’s Find Out!
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Though Jumia didn’t give us any particular reason as to why they are not making money with Jumia Food, I decided to look up some possible reasons, maybe we could discuss them soon.
Could it be Too Much Spending, Not Enough Earning?: Imagine you have a lemonade stand. If it costs more to make the lemonade and run the stand than what you’re making by selling it, you won’t make a profit. Jumia Food might be facing a similar problem with their delivery business – spending lots of money without making enough in return. Maybe people prefer to cook their own food rather than order. Ha! It could be the cost of fuel.
Might be because of Tough Competition: It could be that there are other food delivery service providers out there that are giving Jumia Food a chase for their money. If these other Food delivery startups are faster or cooler, they might get more customers. So, Jumia Food needs to figure out how to stand out in the crowd.
Were they having Delivery Dilemmas?: Ever ordered pizza and it arrived cold or super late? Not fun, right? If Jumia Food had trouble delivering food on time or keeping it fresh, people might choose other options, like going to the restaurant themselves.
We all know Economics is Tricky – Even for Food Delivery: Making money in the food delivery world can be like solving a puzzle. The big boss at Jumia mentioned that the economics (which means how the money stuff works) of delivering food is tough – not just in Africa but everywhere in the world.
Everyone Loves Something Different: Imagine if everyone loved chocolate ice cream, but you only sold vanilla. Jumia Food might be facing a challenge if people in these countries prefer eating out or using different food apps. It’s like trying to please everyone at the dinner table – not easy!
New Menu, New Focus: Jumia’s ‘Oga at the top’, Francis Dufay, thinks there’s more potential in selling physical things like gadgets and clothes. So, it’s like they’re closing the dessert section to make the main course even more delicious.
While thinking about reasons why Jumia Food is shutting down, it dawned on me that some people who work with the organization might be affected. Though there have been assurances that the Jumia Food staff would be moved to the online store department, it is obvious that not all of them would be chosen for the transition, and not all those who make the transition would be able to cope or adapt.
Let me explain this from a different angle
Now, imagine you work in the kitchen making delicious meals, and suddenly you have to switch to stocking shelves with products. That’s what’s happening to some Jumia employees. They’re moving from the food delivery team to the team that handles other things you can buy online. It’s a bit like changing jobs, but Jumia wants to make sure everyone still has work and can learn new things.
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Now my question to you is, how did you receive the news?
For me it was like sometime last year, in September, when I woke up, opened my phone, and read that the Federal Government was planning to ban ‘Ponmo’. (Cow skin, locally called “ponmo”, is a favorite beef part enjoyed as a side dish, snack and condiment in south-western Nigeria.) I can remember, vividly, that a lot of Nigerians didn’t take the information lightly. Yet, some were excited about the ban.
It’s the same for Jumia. Some people might be sad because they loved getting tasty treats without leaving home. Others might not mind much, understanding that delivering food had some tough problems. For Pounded Yam lovers, It’s like finding out that Pounded Yam is sold out at your go-to Pounded Yam restaurant or buka – disappointing, but life goes on.
What Would Nigerians Miss the Most About Jumia Food?
Think about all the delicious dishes you’ve ordered with just a tap on your phone – from steaming hot jollof rice to those mouth-watering suya sticks. Jumia Food had a bit of everything for everyone! Nigerians might miss the easy way they could bring the party home or fix a quick dinner after a long day. It’s like your favorite chef suddenly closing shop, and you’ll miss their special recipes.
As Jumia Food takes a break, the big question is: What will my colleagues at work do next? While the food delivery part is taking a break, Lunchtime orders from the office would have to take a new route.
Here’s what my colleagues at work had to say about missing Jumia Food.
Dotun (The Snack Lover): “Oh man, I’ll miss those surprise snack attacks! Jumia Food made it too easy to satisfy my craving for those crispy fries. Where am I going to get my snack fix now?”
Cent (The Pizza Connoisseur): “Pizza Fridays won’t be the same without Jumia Food. Ordering our favorite pizzas was like a delicious tradition. Now, we’ll have to find a new pizza place, and that’s a cheesy challenge!”
Paul (The Inquisitive One): “Jumia Food was my lunchtime lifesaver. Quick, easy, and no hassle. Now, I guess I’ll have to face the lunchtime rush and the eternal question of ‘What are we eating?'”
Jumoke (The Sweet Tooth): “Being the only lady in the office, I’ll truly miss those impromptu dessert days with Jumia Food. Ordering a sweet treat for the team was my secret weapon to brighten up our afternoons. What will we do without our sugar fix?”
As for me (The Spicy Suya Fan): “Suya Saturdays won’t be as spicy without Jumia Food. I loved how I could get that perfect suya delivered without leaving my comfort zone. Now, I’ll have to spice up my weekends by looking elsewhere.”
What would you miss about Jumia Food? Let us know in the forum or comment section below.