OPay to suspend ride hailing and logistics services

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Ndaman Joshua Olayinkahttp://www.yinksmedia.com
Tech Zealot and Passionate about writing everything concerning it. I support Arsenal.

OPay, the popular Chinese-owned African fintech startup, suspended some of its operations in Nigeria. In a statement, the company confirmed that  ORide, OCar and OExpress will be paused due to the harsh business conditions, during the pandemic.

The economic challenges for OPay began february this year, when the state government of Lagos banned the operations of commercial motorcycles and tricycles in six local government areas in the state. The lockdown on March shutdown some of us its business operations nationwide.  OPay plans to restructure the business focus away from rides, invest in and grow other units such as eCommerce space. OMall is an ecommerce marketplace while OTrade is a business to business trading platform. The company released two ecommerce platforms: OMall and OTrade along with FlexiFixed, a new savings product on March 31st.

ORide, OCar and OTrek ride hailing services is one part of the business and not a major part. Therefore, the restructuring has minimal impact on the whole business. During the pandemic, we have seen continued demand for our offline mobile money agency, and online digital payment, which remain the core of our business.

OPay witnessed a 44% growth of offline and online transaction value from January to April 2020 in the midst of pandemic and lockdown. This is also a testament to the high demand for flexible and easy financial services by Nigerians.  Its mobile money and digital payment services have been profitable so far.
The company plans to focus mainly on fintech and continue to compete with other major players in the fintech space. OPay plans to focus on its payment platform OKash and OWallet. This will form the future of Nigeria’s technology development.

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