Glovo, a food delivery app, is shutting down in Ghana on May 10, 2024, after investing €3.5 million ($3.7 million) there for two years.
The company emailed its restaurant partners about the decision, citing problems making money in Ghana. Instead, Glovo will focus on other African countries like Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.
The company said Ghana needed lots of money and time to become profitable, so they’re moving their efforts elsewhere. After May 10, 2024, the Glovo app won’t work for ordering, but the company will still pay its restaurant partners what they’re owed.
Back in 2021, one of Glovo’s co-founders said they were excited about Ghana’s potential. They had partnered with around 400 businesses in Accra, including pharmacies, grocery stores, electronics shops, and restaurants. Their services were growing fast, with orders going up by 30-45% each month.
But the food delivery business in Ghana is facing challenges like high taxes, low wages, and high inflation. Even though it’s tough, experts think Ghana’s online food delivery market will keep growing, reaching $224.60 million in revenue by 2024 and possibly hitting $544.30 million by 2029.
Jumia stopped its services in Ghana in December 2023, and Bolt Food has left Nigeria and South Africa but is still working in Ghana.
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