Opay suspends ride hailing platforms to focus on e-commerce, fintech
OPay has announced the suspension of its ride hailing platforms which include ORide, OCar and OExpress, a logistics platform of the tech company.
“We can confirm that some of our business units, including the ride-hailing services ORide, OCar as well as our logistics service, OExpress will be put on pause,” the statement read.
The tech company said the decision to shut down these business units was due to harsh business conditions caused by the Covid-19 pandemic, the lockdown, and government ban on motorcycles. The company noted that despite all efforts it undertook to mitigate the adverse effect of the Covid-19, the OPay was still seriously affected.
The firm said it was restructuring its business model in line with present realities. It explained that there was an increase in demand for its offline mobile money agency and online digital payment platform during the first four months of the year.
“From January to April 2020, for example, we witnessed a 44 percent growth of offline transaction value even in the midst of the pandemic and lockdown. This is a testament to the high demand for flexible and easy financial services by Nigerians.’
On February, 1, 2020, the Lagos State government commenced the enforcement of the Transport Sector Reform Law 2018 which banned operation of commercial motorcycles in some areas of the state. This dealt a heavy blow on OPay ride hailing systems.
OPay expressed hopes that the fintech part of its business coupled with goods’ platform would form the future of Nigeria’s technology development.
RECOMMENDED ARTICLES
Comment
No comments found.