In December 2023, Jumia announced that it would be shutting down Jumia Food, its food delivery service in key markets including Ghana. Although Bolt Foods continues to operate, it would not be a surprise if Bolt also decided to close shop after it shut down its food delivery service in Nigeria and South Africa last year.
With the recent departures, Glovo, the Spanish delivery giant, looks to completely dominate the space in Ghana. But can it continue to operate even as macroeconomic conditions including high inflation could affect its operations?
Glovo’s Advantages: A Powerful Arsenal
In 2021, Glovo announced that it was investing €3.5 Million for its Ghana operations. At the time, Glovo had 400 partners in Accra including pharmacies, groceries, electronics, and restaurants. The company currently operates in Accra as well as Kumasi.
The company also operates in 13 African countries, including Morocco, Kenya, and Uganda which gives them the advantage of learning about local logistics in different markets. This experience translates to a robust delivery network, crucial for navigating Ghana’s bustling streets and ensuring swift mealtime satisfaction.
From restaurants and supermarkets to pharmacies, Glovo’s app is a one-stop shop for convenience. This variety caters to the evolving needs of Ghanaian consumers, who increasingly seek multi-purpose platforms that simplify their lives.
Glovo’s aggressive marketing strategies have proven effective in other markets. Discount deals and strategic partnerships have quickly raised brand awareness and attracted customers in Ghana.
Leveraging local partnerships with popular restaurants and influencers could further solidify Glovo’s connection with the Ghanaian market.
Challenges
Ghana’s complex infrastructure presents logistical hurdles. Traffic congestion and unreliable internet connectivity can disrupt deliveries, frustrating customers and impacting Glovo’s reputation.
Investing in innovative solutions like AI-powered route optimization and strategic partnerships with mobile network operators could be crucial in overcoming these hurdles.
Glovo still has to continue to build trust and loyalty even though other competitors like Jumia Food have exited the market. The company needs to prioritize consistent quality, reliable service, as well as competitive pricing to continue to satisfy customers.
If Glovo plays its cards right, adapts to the local market, and prioritizes customer satisfaction, it could not only fill the void left by Jumia and Bolt Food, but truly dominate the Ghanaian delivery scene.
Only time will tell if Glovo’s Ghanaian gamble pays off, but one thing is certain: the race for delivery dominion in Ghana is heating up, and Glovo is a contender to watch.
Catch up on news and other tidbits on our WhatsApp Community Page, Twitter/X, and subscribe to our weekly newsletter to ensure you don’t miss out on any news.
