This archive report was first published on 28 November 2019.
Published on November 28, 2019, Jumia's exit from Tanzania marks a significant reduction in its scope on the continent, leaving it with operations in 12 countries.
The company, often referred to as 'the Amazon of Africa,' made the decision after reviewing its portfolio and prioritizing its resources.
According to Reuters, Jumia's business model has yet to pay off, with the company missing revenue estimates for the second time in three quarters.
Despite the exit, Jumia has stated that it will continue to service vendors and customers via its classifieds business.
Interestingly, Jumia's performance in the New York stock exchange has been underwhelming, with its share price plummeting since its Wall Street debut in April.
Contrasting Fortunes in Kenya ¶
Meanwhile, Jumia's Black Friday sales in Kenya have been a success, with the company reporting a significant increase in orders compared to last year.
Within the first few hours of Black Friday, Jumia Kenya registered up to 3,000 orders, with three lucky customers purchasing motorcycles for Sh 100 each.
Local competitor Masoko, however, has struggled, forced to introduce major adjustments and downgrading its services to a replica of an online Safaricom shop.
