Jumia, Africa’s largest online retailer, has announced the discontinuation of its Prime free delivery subscription programme.
The move is one of several cost-cutting measures implemented by the corporation following five years of continuous losses on the New York Stock Exchange.
According to a business statement, Jumia plans to focus resources on “key sectors and projects with attractive returns on investments and clear ecosystem advantages,” according to TechCabal.
The move will also involve “de-emphasising or ceasing projects and ventures that do not meet such criteria.”
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Asides discontinuing Jumia Prime, a special service that offers unlimited free delivery for loyal subscribers, the company will also end its first-party grocery offerings in selected markets due to poor unit economics.
The company will further cut staff costs by reducing the size of its Dubai office. The senior leadership and decision centres will also be relocated to a location closer to its consumers and sellers in Africa.
Jumia has also witnessed a change in its management in light of the new development.
Francis Dufay, the ex-chief at Jumia Ivory Coast has taken over as the acting Chief Executive Officer of the e-commerce company following the resignation of the company’s co-founders and co-CEO’s Sacha Poignonnec and Jeremy Hodara.
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