Glovo Announces Closure in Ghana, Citing Operational Challenges

Glovo, a prominent delivery platform, has shocked stakeholders with its decision to cease operations in Ghana effective 10:00 pm tonight. The company's unexpected announcement last month highlighted soaring operational costs and revenue shortfalls as primary reasons for its withdrawal.

Effective immediately, the Glovo app will stop accepting orders in Ghana, with outstanding payments to restaurant partners to be settled as per agreed terms and conditions.

This move follows a period of consolidation earlier this year, during which Glovo merged several branches with its East Legon headquarters due to financial constraints.

The impact of Glovo's exit extends beyond logistics, affecting nearly 30 direct staff members and hundreds of delivery riders who relied on the platform for income.

In correspondence with restaurant partners, Glovo attributed its exit to challenges in achieving profitability in the Ghanaian market. The company aims to refocus its efforts on consolidating its presence in other African markets such as Morocco, Uganda, Kenya, Côte d'Ivoire, and Nigeria.

Glovo's decision contrasts with the optimism expressed by Co-founder Sacha Michaud in 2021, who outlined plans for expansion across Ghana to capitalize on its growing population and internet penetration.

Despite collaborations with approximately 400 partners in Accra, Glovo Ghana struggled to overcome challenges despite favorable market conditions.

Industry reports project Ghana's online food delivery sector to generate $224.6 million in 2024, with an estimated annual growth rate of 19.37%, indicating a market volume of $544.30 million by 2029.

Glovo's withdrawal mirrors recent trends in the industry, with Jumia halting operations in Ghana in December 2023 and Bolt Food exiting Nigeria and South Africa while maintaining activity in Ghana.

The future remains uncertain for Glovo's remaining staff and delivery riders. However, Glovo's departure creates a void in Ghana's burgeoning online delivery market, potentially opening opportunities for other companies to expand their presence.

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