TL;DR:

– Jumia has ended its food delivery services across seven markets.
– Jumia has decided to shift its business focus towards the expansion of physical goods.
– This move is part of Jumia’s strategic decision to concentrate on what it considers its core business.

Article

Africa’s prominent tech giant, Jumia, has announced that they are discontinuing their food delivery operations across seven markets. The company has strategically decided to steer away from the increasingly competitive food delivery sector and focus its resources and efforts on the growth and expansion of its physical goods business.

Jumia believes that this strategic move towards concentrating on its core business will enhance its overall growth and economic sustainability in today’s volatile market environment. While the food delivery service was an essential part of Jumia’s diverse portfolio, the rapid expansion and fierce competition in this segment have led the company to rethink and refine its priorities.

Thoughts

In my opinion, Jumia’s decision to discontinue their food delivery operations across seven markets seems like a tactical move, perhaps driven by an objective analysis of their growth and profitability sectors. The food delivery market is undoubtedly a challenging one, filled with many big players and razor-thin margins. Thus, deciding to concentrate on expanding their physical goods business, their core competency, while deprioritizing sectors with stiffer competition may very well be in their best interest. This move also signals a clear intent to leverage their strong market presence and adaptability, which is crucial in the highly dynamic e-commerce space.

Do you agree that focusing on core competencies, rather than attempting to diversify in a highly competitive market, is a more sustainable business strategy?

References

Source: [TechCrunch](https://techcrunch.com/2023/12/14/jumia-discontinues-food-delivery-across-seven-markets-shifts-focus-to-expanding-physical-goods-business/)