Glovo Delivers Final Goodbye: On-Demand Delivery Service Departs Ghana

In a move that surprised many, on-demand delivery service Glovo has announced it will be shutting down operations in Ghana. The company, which offered delivery from a variety of restaurants and stores via motorbike riders, arrived in Ghana with much fanfare in March 2021.

According to an email sent to partner businesses and customers on the Glovo Platform, Glovo; the Delivery service made the decision to close their Ghana operations by May 10th 10:00pm based on a reassessment of their investment priorities as they focus their resources on the other 23 countries Glovo operates in.

Other speculations point to a number of potential factors common in the on-demand delivery space:

• High Competition: The Ghanaian on-demand delivery market has become increasingly crowded, with several local and international players vying for market share. This intense competition can lead to price wars and difficulty in establishing profitability.
• Operational Challenges: Building a robust delivery network and ensuring efficient logistics can be a challenge in any market. Factors like traffic congestion, infrastructure limitations, and ensuring rider safety can all impact operational costs.
• Consumer Adoption: While on-demand delivery is a growing trend, it may not have reached a critical mass of users in Ghana to support multiple players. Encouraging users to adopt new habits and convincing them to pay delivery fees can be difficult.

The closure of Glovo will undoubtedly have an impact on various stakeholders:

• Delivery Riders: Glovo riders will likely be the most immediately impacted, potentially losing their source of income.
• Partner Businesses: Restaurants and stores that relied on Glovo for deliveries will need to find alternative ways to reach their customers.
• Consumers: Those who have come to rely on Glovo for convenient deliveries will need to find other options.

The future of on-demand delivery in Ghana remains to be seen. While Glovo’s departure leaves a gap, it may also open up opportunities for other companies to consolidate their market position or for new players to emerge.

Only time will tell how Ghanaians will continue to get their favorite food and everyday essentials delivered to their doorstep.