__________________________

Jumia Technologies AG has plans to shut down its food delivery business, Jumia Food, citing the tough operating environment and macroeconomic conditions in its market.

Jumia currently operates its food delivery business in Uganda, Nigeria, Kenya, Morocco, Tunisia, Algeria, and the Ivory Coast.

In a statement, Francis Dufay, Chief Executive Officer of Jumia said: “The more we focus on our physical goods business, the more we realize that there is huge potential for Jumia to grow, with a path to profitability.

“We must make the right decision and fully focus our management, our teams, and our capital resources to go after this opportunity. In the current context, it means leaving a business line, which we believe does not offer the same upside potential - food delivery."

In Uganda, Jumia is working with popular outlets such as Cafe Javas, Carrefour Supermarket, Pizza Hut, Cafesserie, and Java House among others to deliver food to clients. The orders are placed using the Jumia application.

Fast food remains very popular among Ugandan consumers because of its wide variety and affordable price. A typical fast food meal in Kampala ranges between sh10,000 and sh25,000.