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Jumia Foods Shuts Down Operation in Rwanda, Shifts Jumia Travel to Travelstart

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Jumia Foods Shuts Down Operation in Rwanda, Shifts Jumia Travel to Travelstart

Pan-African E-commerce Company, Jumia has suspended its operations in Rwanda, its third country to offload at it aims to achieve profitability.

“We regret to inform you that Jumia will suspend our on-demand delivery operations in Rwanda on January 9th 2020,” Jumia said in a message to its Rwandan customers on Monday.

The company has done away with pay on delivery and will only be accepting orders that have been pre-paid starting December 9, 2019, and have all customer accounts closed by 9th January 2019 according to The New Times Rwanda. The company also said it would continue to support buyers and vendors using its classified portal, known as Jumia Deals.

About a fortnight ago, the New York-listed company shut down its business in Tanzania, just a week after shutting down operations in Cameron. In all these, Jumia has attributed to the refocussing on resources on other markets and units that are deemed to be more thriving as the main reason for shutting down some units.

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This also comes after announcing that it has offloaded its Jumia Travel unit to Travelstart. According to Techcabal, Jumia has apparently entered into a partnership with Travelstart, another online flight-booking platform that operates mainly in Nigeria and South Africa. Travelstart will handle all the operations side including revenue management and customer service of the business and visitors to Jumia Travel’s website will be re-directed to Travelstart as from today. The company is also in talks with Konga Travel and Wakanow to absorb some of the Jumia Travel employees.

In parallel though, Jumia is making progress in their payment and FinTech units with JumiaPay showing very strong growth momentum on both volume and transaction metrics.

“JumiaPay remains a key focus area for us, and we aim to drive the adoption of Jumia Pay on our platform in a gradual manner, in order to expand into off-platform payments in the future,” commented Sacha Poignonnec and Jeremy Hodara, Co-Chief Executive Officers of Jumia when announcing the financial report for the third quarter (Q3).

“The number of JumiaPay Transactions reached 2.1 million, up 262% from the same period last year, demonstrating robust traction of digital payments on their platform. In the third quarter of 2019, approximately 31% of Orders at Group level were settled via JumiaPay compared to 16% a year ago, demonstrating their ability to leverage the marketplace flywheel to drive the adoption of JumiaPay” reads part of the report.

Jumia Travelstart - Founder360

With a flurry of news emerging from Jumia ever since their financial report for the third quarter (Q3) of 2019 was released, there is clearly a wave of changes in the company more so in their tact towards becoming a profitable E-commerce company.

While its revenue is reportedly up, the company posted widening losses US$55 million in Q3 2019. The company has seen its stock price decline steeply since its IPO at the New York Stock Exchange in April currently operating at US$5.76 (At the time of publishing).

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CEO and Founder at Founder360° Magazine.

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