Online booking platform, Travelstart, has reportedly acquired Jumia Travel, a subsidiary company of Jumia cutting down, by implication, the overall market size of Jumia.
This development is coming on the heels of Jumia’s close of business in Tanzania only few weeks ago.
Recall that Ripples Nigeria had reported the closure of Jumia’s ecommerce branch in East Africa in November when the company claimed it needed to concentrate on priority markets.
Going by the current trend of the company, Jumia is sending a negative signal to existing and potential investors that its board of directors can no longer run its enterprise.
The coming days might see investors pulling out or probing the system if due communication is not made to clarify the developments.
There might be undisclosed message in Jumia’s body language. Critics and business evaluators might ask: as Jumia keeps cutting down, is its management gradually saying good bye to business?
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