Glovo, a food delivery service, will stop operating in Ghana on May 10, 2024, after investing €3.5 million ($3.7 million) to expand its operations there over two years ago. The company informed its restaurant partners about this decision via email, citing profitability challenges in the Ghanaian market as the reason for the closure. Following this move, Glovo will shift its focus to other African markets such as Morocco, Uganda, Kenya, Côte d’Ivoire, and Nigeria.

Although Glovo acknowledges the potential of the Ghanaian market, achieving a stronger position and profitability there would demand significant investment over a prolonged period. Therefore, Glovo has opted to reallocate its resources to focus on the other 23 countries where it operates, allowing them to better serve the millions of daily customers using the Glovo app.

Glovo announced that starting from 10 p.m. on May 10, 2024, customers will no longer be able to place orders through the app in Ghana. Restaurant partners will receive any outstanding payments according to the agreed terms and conditions.

In 2021, Glovo’s Co-founder Sacha Michaud expressed optimism about the Ghanaian market, stating that it held great promise for Glovo. He mentioned that the company intended to continue investing in reaching all regions of the country to provide convenience to people. Michaud highlighted the benefits of Ghana’s growing population and increasing Internet accessibility for business opportunities.

Reports indicate that the food delivery industry is facing challenges including high taxes, low wages, and inflation. It is forecasted that Ghana’s online food delivery market will generate approximately US$224.60 million in revenue in 2024, with an annual growth rate of 19.37% (CAGR 2024-2029), reaching an estimated market volume of US$544.30 million by 2029.