Home Business OPay to suspend ride hailing and logistics services

OPay to suspend ride hailing and logistics services

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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

How JumiaPay is expanding access to the unbanked population

The innovative use of technology in delivery of financial services is eliciting a positive impact on businesses and customers’ experience in Nigeria....

Konga Health set to launch in June 2021

Konga Health, a highly anticipated digital health care distribution subsidiary of Nigeria’s leading e-Commerce giant, Konga is set to go live by...

12 Remote Job openings in Ghana and Nigeria as Twitter expands to Africa

Twitter has announced plans to open its first African office in Ghana and the company will employ 12 people for different remote...

Twitter to open first Africa Office in Ghana

Twitter has announced plans to open its first African office in Ghana. In line with Twitter growth strategy, the social media giant...

Recent Comments