Glovo Exits Ghanaian Market

Glovo, the popular food delivery platform in Africa, has recently announced that it will be discontinuing its operations in Ghana from May 10, 2024.

Gatekeepers News reports that the company cited profitability challenges and a reevaluation of its investment priorities as reasons for this decision.

According to sources, Glovo had invested $3.7 million in Ghana three years ago to expand its services in the country.

However, the company’s Regional General Manager for Africa, Dima Rasnovsky, clarified that the move is a strategic decision taken after a thorough reassessment of its investment priorities.

“Following a reassessment of the company’s investment priorities, Glovo has decided to cease operations in Ghana by May 10, 2024. Glovo will focus on growing and strengthening its position in other African countries. We thank our teams, partners, and riders in the country for the dedication to growing Glovo in Ghana over the last years,” he said.

The delivery platform said via email, “While we recognize the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period.

“This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us to better serve the millions of customers who use the Glovo app every day,” Dima said.

The Glovo team said it would provide severance packages to its local team and riders that exceed the legislative minimum.

In addition, all couriers, partners, and customers will be effectively communicated about the new decision to ensure they are informed about the situation.

Despite the planned exit from the Ghana market, Glovo stated that it remains committed to providing top-notch service to the countries it currently operates and believes that its decision to pull out of the Ghanaian market will strengthen its position in other markets.