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Glovo to stop operating in Ghana effective May 10, cites profitability concerns

The announcement conveyed through a notice to one of its clients, indicates that Glovo's official customer app will become inaccessible for orders from that date onwards.
Glovo to stop operating in Ghana effective May 10, cites profitability concerns
Glovo to stop operating in Ghana effective May 10, cites profitability concerns

The announcement conveyed through a notice to one of its clients, indicates that Glovo's official customer app will become inaccessible for orders from that date onwards.

Citing the necessity for an "extended period of time" to fortify its market position and attain profitability, Glovo elucidated the rationale behind its decision. The company has opted to reallocate its resources to bolster operations in the other 23 countries where it maintains a presence.

Despite the discontinuation of services in Ghana, Glovo has assured its clients that any outstanding payments will be settled in accordance with the company's terms and conditions, albeit within due time.

Glovo's venture into the Ghanaian market was part of a broader strategic move within Africa. In October 2021, the company invested €25 million ($30 million) to introduce its food delivery services to six African countries, including Ghana. The Ghanaian launch, which occurred in March 2021, was accompanied by a commitment from Glovo's Co-Founder, Sacha Michaud, who pledged an investment of 3.5 million euros during the same year.

The decision to discontinue operations in Ghana underscores the competitive landscape and challenges faced by delivery service providers in emerging markets. Glovo's departure leaves a void in the local delivery ecosystem, prompting speculation about potential opportunities for other players to fill the gap.

As Glovo redirects its focus to other markets, stakeholders in Ghana's delivery sector are left to assess the implications and adjust their strategies accordingly.

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