Glovo To Shut Down Its Ghana Operations From May 10
GLOVO has declared its decision to discontinue its operations in Ghana due to what netizens have interpreted as the ‘hostile business environment’ in the country.
Glovo is a Spain-based, delivery app founded in 2014 by Oscar Pierre, and launched in 2015 by himself and Sacha Michaud following an initial round of funding. Since mid-2022, Glovo has been a part of the Delivery Hero Group, a publicly traded German company.
Starting from May 10, the company will cease its activities in Ghana. The announcement was communicated to their partners via email.
In the email, Glovo cited profitability challenges faced in the Ghanaian market as the primary reason behind this strategic move. Consequently, the company will redirect its efforts towards strengthening its position in other African markets, including Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.
In a statement sent via email, Glovo mentioned, “While we recognise 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. This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us better serve the millions of customers who use Glovo app everyday”.
The announcement also clarified that as of 10 p.m. on May 10, 2024, the Glovo app would cease to accept orders in Ghana. Moreover, outstanding payments owed to restaurant partners will be settled by the terms and conditions agreed upon.
Sacha Michaud, the Co-founder of Glovo, shared his positive outlook on the company’s future in Ghana in 2021. He emphasized the continuous investments being made to expand services throughout all regions of the country, aiming to provide convenience to its users.
Michaud also pointed out the favourable business environment in Ghana, citing the country’s growing population and increasing Internet usage as key factors for potential growth.
Despite establishing partnerships with approximately 400 businesses in Accra, such as pharmacies, grocery stores, electronics shops, and restaurants, Glovo Ghana faced challenges despite the promising market conditions highlighted by Michaud. The monthly order growth for Glovo Ghana’s services varied between 30-45 percent.
