Finance
Glovo abandons Ghana operations over profitability
In a communiqué addressed to a certain Richmond, who appears to be an individual in the delivery service, Glovo has announced it has “made the decision to close our Ghana operations by May 10.”
The letter specified that the closure will take place at “10:00 PM” on the date indicated.
“The decision,” Glovo explained, “is based on a reassessment of our investment priorities as we focus our resources on the other 23 countries where Glovo operates.
“This will allow us to better serve the millions of users that use the Glovo app every day.”
Expressing confidence that service providers “will also inform” stakeholders, Glovo stressed that its application and slots thereon will remain active until Friday, May 10, 2024.
The termination of the collaboration between service providers and Glovo will be done “smoothly,” the letter assured.
“We want to thank you for choosing Glovo; without you, it wouldn’t have been possible to serve thousands of customers,” the letter, signed by the Glovo team, concluded.
In a similar notice, the time served to Ma Cherie Restaurant, Glovo elaborated on why it was folding up its project in Ghana. It frankly intimated it was not making profits in the West African country.
“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 of time,” Glovo revealed.
An acclaimed multiple-category delivery company, Glovo came to Ghana in March 2021, promising professional, convenient, and affordable delivery services. In that year, Ghana was its fifth African project and its second in West Africa, while co-founder Sacha Michaud indicated the establishment was ready to invest 3.5 million euros in October.
Glovo Ghana’s General Manager, Pearlyn Budu, expressed the company’s excitement about “launching in Ghana,” as it placed convenient delivery of orders from eateries, pharmacies, grocery shops, etc., just “a few clicks away.”
She recognized Glovo’s “service will be a great way to get all the things you need, without leaving your home or office” during the COVID-19 pandemic.
Asserting “Ghanaians will love Glovo,” she touted, “This service will be a huge asset to business owners,” adding that it would also alleviate traffic jams.
Glovo came to Africa in 2018. The Spanish company was founded three years prior.
Some social media users on platform X believe Glovo Ghana folded up over taxation and prices of petroleum products.
A user argued it was simply an issue of “market share or market growth” and not about the government creating a hostile environment for business.
Yet another X user suggested Glovo was bribed to leave Ghana as part of a politically motivated chess move by the opposition in an election year.
Source: classfmonline.com
