Jumia has shut down operations in another African country. The Africa-based e-commerce giant closed its shop in Tanzania after 5 years of operation. This comes few days after it shut down operations in Cameroon.
Jumia took this move is allegedly to cut back losses. The company says this move is in a bid to focus on other markets.
Jumia said; “While Tanzania has strong potential and we’re proud of the growth we’ve collectively seen stemming from Jumia’s adoption, we have to focus our resources on our other markets. This decision isn’t easy but will help put our focus and resources where they can bring the best value and help Jumia thrive.”
Considering the losses it suffered since its inception, this statement confirms that the company is cutting its operational cost.
According to its third-quarter 2019 (Q3) reports, Jumia lost about $55 million. Totaling its 2019 loss to $180.1 million and about $1 billion since its inception.
Considering that Jumia aims to become profitable in 2022, these losses and its poor run on the New York Stock exchange are disturbing. Suffice to say, that cutting down cost and shutting down operations in some countries is not a bad move.
With the recent clamp down, Jumia is now operational across 12 countries viz; Nigeria, Egypt, Morocco, Kenya, Ivory Coast, South Africa, Tunisia, Algeria, Ghana, Senegal, Uganda and Rwanda.
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