Glovo, a popular delivery service in over 20 locations across the globe including Ghana has announced that its Ghana business will be closing effective Friday, May 10, 2024. The company announced its decision by email to its numerous clients and business partners that as of 10pm on the said date its customer app “will no longer be available for placing orders”. The “difficult decision” was made as it became increasingly difficult for the company to continue its operations in the country.

“While we recognize 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”, the statement said

Until then, Glovo has decided to redirect its resources towards the other 23 countries where it operates. As it says on its website, Glovo is a Spanish technology company and the fastest-growing multi-category player in Europe, Western Asia, and Africa. The company launched operations into Ghana in March 2021 and has partnered with over 1,000 food vendors across major cities and suburbs in the country. Glovo’s investment in sub-Saharan Africa to date is worth a combined total of €25 million (US$30 million), with €1.7 million invested in its Ghana operations out of a total €3.5 million over the period.

The company has however assured its customers that all outstanding payments will be made in due time. It further added that during the last days of its Ghana operations stores/local businesses which already use the Glovo platform will be automatically set to accept credit and cash orders in order to reconcile all the affected entities.

Some ‘X’ users have reacted to the news in various ways with this particular user wondering what has necessitated Glovo’s departure and how that will impact the local job market.