#Business

Glovo Shuts Down Operations In Ghana After $3.7 Million Investment

For its services in Ghana, the company recorded remarkable month-over-month order growth rates ranging from 30-45%.

The well-known delivery platform Glovo has declared its intention to cease operations in Ghana, citing the requirement for a substantial investment in order to turn a profit. Glovo has redirected its focus to improve services for its large client base in the other 23 nations where it operates, despite having invested $3.7 million in the nation two years ago.

Glovo acknowledged Ghana’s market potential in an email statement, but it also emphasised that significant and sustained investments are required to establish the company’s position and achieve profitability. As a result, the business decided to reallocate its resources in order to better serve millions of clients throughout the nations where it operates.

Glovo further explained that its app will stop facilitating consumer orders in Ghana on May 10, 2024. On the other hand, the business guarantees its restaurant partners that any unpaid balances will be settled in compliance with predetermined terms and conditions.

The optimism that Glovo’s co-founder Sacha Michaud expressed in 2021 is sharply at odds with this decision. Then, Michaud had highlighted Ghana’s potential market, pointing to elements that were favourable for company growth, such as a rising population and rising Internet usage.

Glovo has previously bragged of partnerships with almost 400 businesses in Accra, including restaurants, pharmacies, grocery stores, and electronics. For its services in Ghana, the company recorded remarkable month-over-month order growth rates ranging from 30-45%.

Nevertheless, reports indicate that Ghana’s food delivery ecosystem grapples with various challenges, including high taxes, low wages, and inflationary pressures. Despite a projected revenue of US$224.60 million for the country’s online food delivery market in 2024, with an expected annual growth rate of 19.37% (CAGR 2024-2029), Glovo’s withdrawal underscores the complexities of operating in such environments.

Glovo Shuts Down Operations In Ghana After $3.7 Million Investment

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Glovo Shuts Down Operations In Ghana After $3.7 Million Investment

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